-CITE-
    46 USC APPENDIX TITLE 46, APPENDIX - SHIPPING               01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    
-HEAD-    
    TITLE 46, APPENDIX - SHIPPING

    THIS APPENDIX CONSISTS OF SECTIONS OF FORMER TITLE 46 THAT ARE NOT
       INCLUDED IN TITLE 46, SHIPPING, AS ENACTED BY PUB. L. 98-89,
       SUBTITLE B OF TITLE V OF PUB. L. 99-509, SECTION 6 OF PUB. L.
    100-424, AND PUB. L. 100-710, AND CERTAIN LAWS RELATED TO SHIPPING
     THAT WERE ENACTED AFTER PUB. L. 98-89. SECTIONS FROM FORMER TITLE
         46 RETAIN THE SAME SECTION NUMBERS IN THIS APPENDIX. FOR
       DISPOSITION OF ALL SECTIONS OF FORMER TITLE 46, SEE TABLE AT
                     BEGINNING OF TITLE 46, SHIPPING.

 
    Chap.                                                            Sec.
    1.      Administration of Shipping Laws                            3
    2.      Documentation, Recording, and Measurement                 14
    3.      Clearance and Entry                                       91
    4.      Tonnage Duties                                           121
    5.      Discriminating Duties and Reciprocal Privileges          141
    6.      Regulation as to Vessels Carrying Steerage
             Passengers                                              163
    8.      Limitation of Vessel Owner's Liability                   181
    12.     Regulation of Vessels in Domestic Commerce               251
    13.     Passports and Papers of Vessels Engaged in Foreign
             Commerce                                                354
    14.     Inspection of Steam Vessels                              441
    15.     Transportation of Passengers and Merchandise by
             Steam Vessels                                          466c
    18.     Merchant Seamen                                          688
    19.     Wrecks and Salvage                                       721
    19A.    Admiralty and Maritime Jurisdiction                      740
    20.     Suits in Admiralty By or Against Vessels or Cargoes
             of United States                                        741
    21.     Death on High Seas by Wrongful Act                       761
    22.     Suits in Admiralty Against United States for Damages
             Caused by Public Vessels or for Towage or Salvage
             Services                                                781
    23.     Shipping Act                                             801
    23A.    Intercoastal Shipping                                    843
    24.     Merchant Marine Act, 1920                                861
    24A.    Merchant Marine Act, 1928                                891
    27.     Merchant Marine Act, 1936                               1101
    28.     Carriage of Goods by Sea                                1300
    34.     Safe Containers for International Cargo                 1501
    35.     Maritime Administration                                 1601
    36.     International Ocean Commerce Transportation             1701
    37.     International Maritime and Port Security                1801
    38.     Maritime Drug Law Enforcement                           1901
    39.     Merchant Marine Decorations and Medals                  2001

-End-

-CITE-
    46 USC APPENDIX CHAPTER 1 - ADMINISTRATION OF
           SHIPPING LAWS                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 1 - ADMINISTRATION OF SHIPPING LAWS

-HEAD-
                CHAPTER 1 - ADMINISTRATION OF SHIPPING LAWS            

-MISC1-
    Sec.                                                     
    3.          Measurement and numbering; tonnage tax.               
    9.          Delegation of classification functions.               
                  (a), (b) Repealed.                                  
                  (c)  Report on delegation of classification
                        functions.                                    
                  (d)  Repealed.                                      

         WAIVER OF COMPLIANCE WITH NAVIGATION AND INSPECTION LAWS;
                             TERMINATION DATE
      Act Dec. 27, 1950, ch. 1155, Secs. 1, 2, 64 Stat. 1120, provided
    that: "The head of each department or agency responsible for the
    administration of the navigation and vessel-inspection laws is
    directed to waive compliance with such laws upon the request of the
    Secretary of Defense to the extent deemed necessary in the interest
    of national defense by the Secretary of Defense. The head of such
    department or agency is authorized to waive compliance with such
    laws to such extent and in such manner and upon such terms as he
    may prescribe, either upon his own initiative or upon the written
    recommendation of the head of any other Government agency, whenever
    he deems that such action is necessary in the interest of national
    defense.
      "Sec. 2. The authority granted by this Act shall terminate at
    such time as the Congress by concurrent resolution or the President
    may designate."
      Similar provisions were contained in acts Mar. 31, 1947, ch. 27,
    61 Stat. 33; July 31, 1947, ch. 408, 61 Stat. 685; Feb. 27, 1948,
    ch. 78, Sec. 2, 62 Stat. 38; Feb. 28, 1949, ch. 12, 63 Stat. 9;
    June 29, 1949, ch. 281, Sec. 1, 63 Stat. 349; June 30, 1950, ch.
    427, Sec. 4, 64 Stat. 309.

-TRANS-
         TRANSFER OF FUNCTIONS RELATING TO SHIPPING AND NAVIGATION     
      Bureau of Navigation created by act July 5, 1884. Act June 30,
    1932, consolidated Bureau of Navigation with Steamboat Inspection
    Service to form a new bureau to be known as Bureau of Navigation
    and Steamboat Inspection, which name was changed to Bureau of
    Marine Inspection and Navigation by act May 27, 1936. Director of
    the Bureau of Marine Inspection and Navigation was designation
    given to chief of bureau by Secretary of Commerce under act June
    30, 1932, Sec. 502(b). Bureau and office of its Director abolished
    by Reorg. Plan No. 3 of 1946, Sec. 104, set out below.

      Reorg. Plan No. 3 of 1946, Secs. 101 to 104, eff. July 16, 1946,
    11 F.R. 7875, 60 Stat. 1097, provided:
      "Section 101. Functions Transferred to the United States Coast
    Guard. - (a) There are hereby transferred to the Commandant of the
    Coast Guard those functions of the bureau, offices, and boards
    specified in the first sentence of section 104 of this plan, and of
    the Secretary of Commerce, which pertain to approval of plans for
    the construction, repair, and alteration of vessels; approval of
    materials, equipment, and appliances; classification of vessels;
    inspection of vessels and their equipment and appliances; issuance
    of certificates of inspection, and of permits indicating the
    approval of vessels for operations which may be hazardous to life
    or property; administration of load line requirements; enforcement
    of other provisions for the safety of life and property on vessels;
    licensing and certificating of officers, pilots, and seamen;
    suspension and revocation of licenses and certificates;
    investigation of marine casualties; enforcement of manning
    requirements, citizenship requirements, and requirements for the
    mustering and drilling of crews, control of logbooks; shipment,
    discharge, protection, and welfare of merchant seamen; enforcement
    of duties of shipowners and officers after accidents; promulgation
    and enforcement of rules for lights, signals, speed, steering,
    sailing, passing, anchorage, movement, and towlines of vessels and
    lights and signals on bridges; numbering of undocumented vessels;
    prescription and enforcement of regulations for outfitting and
    operation of motorboats; licensing of motorboat operators;
    regulation of regattas and marine parades; all other functions of
    such bureau, offices, and boards which are not specified in section
    102 of this plan; and all other functions of the Secretary of
    Commerce pertaining to those functions of the agencies abolished
    under section 104 of this plan which are not specified in section
    102 of this plan, including the remission and mitigation of fines,
    penalties, and forfeitures incurred under the laws governing these
    functions and those incurred under the act of December 17, 1941 (55
    Stat. 808), as amended.
      "(b) The functions relating to the award of numbers to
    undocumented vessels vested by law in the collectors of customs are
    hereby transferred to the Commandant of the Coast Guard.
      "Sec. 102. Functions Transferred to Bureau of Customs. - There
    are hereby transferred to the Commissioner of Customs those
    functions of the bureau, offices, and boards specified in the first
    sentence of section 104 of this plan, and of the Secretary of
    Commerce, which pertain to registry, enrollment, and licensing of
    vessels, including the issuance of commissions to yachts, the
    assignment of signal letters, and the preparation of all reports
    and publications in connection therewith; measurement of vessels,
    administration of tonnage duties, and collection of tolls; entry
    and clearance of vessels and aircraft, regulation of vessels in the
    coasting and fishing trades, and limitation of the use of foreign
    vessels in waters under the jurisdiction of the United States;
    recording of sales, conveyances, and mortgages of vessels;
    protection of steerage passengers; all other functions of such
    bureau, offices, and boards which were performed by the Bureau of
    Customs on behalf thereof immediately prior to the effective date
    of Executive Order No. 9083 of February 28, 1942 (7 F.R. 1609); and
    the power to remit and mitigate fines, penalties, and forfeitures
    incurred under the laws governing these functions.
      "Sec. 103. Powers of the Secretary of the Treasury. - The
    functions transferred by sections 101 and 102 of this plan may be
    performed through such officers and employees of the United States
    Coast Guard and the Bureau of Customs, respectively, as may be
    designated by the Commandant of the Coast Guard and the
    Commissioner of Customs, respectively, and shall be performed
    subject to the direction and control of the Secretary of the
    Treasury except as otherwise required by law with respect to the
    United States Coast Guard whenever it operates as a part of the
    Navy.
      "Sec. 104. Abolition of Agencies. - The Bureau of Marine
    Inspection and Navigation, the office of the director thereof, the
    offices of supervising inspectors, principal traveling inspectors,
    local inspectors, assistant inspectors, shipping commissioners,
    deputy shipping commissioners, and the board of supervising
    inspectors, the boards of local inspectors, the marine casualty
    investigation board, and the marine boards are hereby abolished.
    The Secretary of the Treasury shall provide for winding up those
    affairs of the said abolished agencies which are not otherwise
    disposed of herein."
      This Reorganization Plan continued on a permanent basis the
    temporary transfer of functions made during World War II by Ex.
    Ord. No. 9083, Secs. 1 to 4, eff. Feb. 28, 1942, 7 F.R. 1609,
    formerly set out under section 601 of Title 50, Appendix, War and
    National Defense.
      By Coast Guard General Order 2-46, July 16, 1946, 11 F.R. 7775,
    and Treas. Dept. Reg. 51491, July 16, 1946, 11 F.R. 7766, the
    Commandant of the Coast Guard and The Commissioner of Customs each
    provided that all orders, rules, regulations, permits or other
    privileges made, issued or granted in respect of all functions
    transferred to him by Reorg. Plan No. 3 of 1946, Secs. 101-104, and
    in effect at the time of such transfer should continue in effect to
    the same extent as if such transfer had not occurred.
      On the basis of 33 C.F.R. ch. I, and 46 C.F.R. ch. I, the
    Commandant of the Coast Guard appears to have assigned the
    functions transferred to him as follows:

      Functions formerly performed              Now assigned to:        
                  by:                                                   
    --------------------------------------------------------------------
      Bureau of Marine Inspection      Commandant of the Coast Guard    
       and Navigation and its Direct                                     
      Board of Supervising Inspecto    Commandant of the Coast Guard    
      Supervising Inspector            Coast Guard District Commander   
      Board of Local Inspectors        Officer in Charge, Marine        
                                        Inspection                      
      Inspectors and Assistant         Marine Inspectors (or            
       Inspectors                       "inspectors")                   
    --------------------------------------------------------------------

      For investigation of Marine casualties and suspension and
    revocation of licenses and certificates, formerly performed by the
    Marine Casualty Investigation Board and Marine Boards, see note set
    out under section 239 of this title.
      Memoranda of the Chief Counsel of the Coast Guard, July 7, 1947,
    Chief Counsel of the Bureau of Customs, July 14, 1947, and Chief
    Counsel of the Treasury, July 21, 1947, concurred in the view that
    the duties of collectors of customs were not affected by Reorg.
    Plan No. 3 of 1946, with the exception of those duties specified in
    section 101(b) of the Plan.

         CERTAIN FUNCTIONS FORMERLY PERFORMED BY BUREAU OF CUSTOMS     
      The following is a statement relating to the transfer of certain
    functions from the Commissioner of Customs to the Commandant of the
    Coast Guard, appearing in 32 F.R. 7408, 7409, May 18, 1967:
      On April 28, 1967, a memorandum of agreement was signed by the
    Commandant of the Coast Guard and the Commissioner of Customs which
    provided that - 
      1. Treasury Department Order No. 167-81 transferred from the
    Commissioner of Customs to the Commandant, U.S. Coast Guard, the
    functions pertaining to the admeasurement of vessels, the
    documentation of vessels, the publication of merchant vessel
    registers, the registration of stack insignia, and shoreside port
    security. Because of the transfer of the Coast Guard from the
    Treasury Department to the Department of Transportation and because
    of continuing efforts to reorganize and modernize the shipping laws
    of the United States now assembled in title 46, U.S. Code, with a
    view toward eventual codification, it is recognized that the laws
    and provisions of law that relate to the transferred functions
    should be identified.
      2. It is therefore agreed that - 
      a. The following sections of the U.S. Code, 1964 edition, relate
    entirely to the transferred functions:

      Title        Chapter                       Sections                
    --------------------------------------------------------------------
           46              1    2 (nothing in this section is considered 
                                 vital or necessary to the authority to  
                                 perform the functions pertaining to     
                                 entry and clearance of vessels,         
                                 collection of tonnage tax, or           
                                 enforcement of the coastwise laws       
                                 generally).                             
                           2    12, 14-41, 43-56, 58, 61-63, 71, 72, 74, 
                                 75, 77, 81-83k.                         
                           3    103, 105, 109.                           
                           6    151-157, 159, 160.                       
                          11    227, 236-238.                            
                          12    252-255, 258-260, 263-265, 267-272, 275, 
                                 276, 279, 334.                          
                          13    351-353.                                 
                          15    496.                                     
                          25    921-927, 941, 981-984.                   
                          26    1011-1014.                               
    --------------------------------------------------------------------

      b. Parts of the following sections of the U.S. Code, 1964
    edition, relate to the transferred functions as indicated:

      Title        Chapter                       Sections                
    --------------------------------------------------------------------
           46              1    3 (except as it relates to tonnage tax). 
                                4 (first two sentences).                 
                           6    158 (second sentence).                   
                          12    262 (second sentence).                   
                          12    320 (as it relates to sections 45 and    
                                 77).                                    
                                321 (as it relates to sections 252-255,  
                                 258, 259, 262-273, 275-277, 279 and 280).
                                322 (as it relates to sections 252-255,  
                                 258, 259, 262-273, 275-277, 279 and 280).
                                323 (as it relates to sections 252-255,  
                                 258, 259, 262-273, 275-277, 279 and 280).
                                324 (as it relates to sections 252-255,  
                                 258, 259, 262-273, 275-277, 279 and 280).
                                326 (as it relates to sections 252-255,  
                                 258, 259, 262-273, 275-277, 279 and 280).
                                328 (as it relates to sections 252-255,  
                                 258, 259, 262-273, 275-277, 279 and 280).
                                331 (as it relates to measurement of     
                                 tonnage, issuance or granting of        
                                 certificates of registry, records or    
                                 enrollments, recording of bills of sale,
                                 mortgages, hypothecations or            
                                 conveyances, and the furnishing of      
                                 certificates of title).                 
                                333 (as it relates to sections 252-255,  
                                 258, 259, 262-273, 275-277, 279 and 280).
                                335 (as it relates to sections 252-255,  
                                 258, 259, 262-273, 275-277, 279 and 280).
                                336 (as it relates to sections 252-255,  
                                 258, 259, 262-273, 275-277, 279 and 280).
                          24    881 (the second proviso).                
                          25    911(1), (2), (3), and (5).               
    --------------------------------------------------------------------

      c. The following sections and parts of sections of the U.S. Code
    1964 edition, relate to functions transferred and to functions
    retained by Customs:

      Title        Chapter                       Sections                
    --------------------------------------------------------------------
           19              3    261, 267.                                
                           4    1451, 1524.                              
           46              1    7, 4 (last sentence) 8.                  
                           2    11, 13, 59, 60.                          
                           6    158 (the second paragraph), 161, 162.    
                          11    221.                                     
                          12    251(a) (the first sentence), 266, 277,   
                                 278, 280, 292, 319, 325, 327, 332.      
                          14    404a.                                    
                          24    883 (the first and second provisos)      
                                 883a, 883b, 883-1.                      
    --------------------------------------------------------------------

      d. The following sections of the U.S. Code, 1964 edition, relate
    to functions transferred and to functions administered under the
    Secretary of Commerce:

      Title        Chapter                       Sections                
    --------------------------------------------------------------------
           46             23    838, 840.                                
                                911(4) (pending transfer to the          
                                 Department of Transportation under the  
                                 provisions of Reorganization Plan No.   
                                 1-67).                                  
           50             12    198(a).                                  
    --------------------------------------------------------------------

      e. The following sections of the U.S. Code, 1964 edition, relate
    to functions transferred, to functions retained by Customs, and to
    functions administered under the Secretary of Commerce.

      Title        Chapter                       Sections                
    --------------------------------------------------------------------
           46             23    801, 802, 803, 808.                      
    --------------------------------------------------------------------

      3. The identification of statutes set forth above is for the
    information and guidance of the public. Nothing therein shall be
    deemed to have the effect of amending in any respect the provisions
    of Treasury Department Order No. 167-81 or the functions of any
    agency thereunder.

            TRANSFER OF FUNCTIONS TO SECRETARY OF THE TREASURY        
      For transfer of functions of other officers, employees, and
    agencies of Department of the Treasury, with certain exceptions, to
    Secretary of the Treasury with power to delegate, see Reorg. Plan
    No. 26 of 1950, Secs. 1, 2, eff. July 31, 1950, 15 F.R. 4935, 64
    Stat. 1280, 1281, set out in the Appendix to Title 5, Government
    Organization and Employees. Functions of Coast Guard and Commandant
    of Coast Guard excepted from transfer when Coast Guard is operating
    as part of Navy under sections 1 and 3 of Title 14, Coast Guard.

    ADMINISTRATIVE DELEGATION OF FUNCTIONS BY SECRETARY OF THE TREASURY
      On July 31, 1950, Secretary of the Treasury issued Treasury
    Department Order No. 120 directing that officers, employees, and
    agencies of Department of the Treasury continue to perform
    functions they were authorized to perform prior to effective date
    of Reorg. Plan No. 26 of 1950, eff. July 31, 1950, 15 F.R. 4935, 64
    Stat. 1280, and stipulating that authorized regulations and
    procedures in effect immediately prior to effective date of Plan
    continue in effect until changed by appropriate authority.

-End-

-CITE-
    46 USC APPENDIX Sec. 3                                      01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 1 - ADMINISTRATION OF SHIPPING LAWS

-HEAD-
    Sec. 3. Measurement and numbering; tonnage tax

-STATUTE-
      The Commissioner of Customs shall be charged with the supervision
    of the laws relating to the admeasurement of vessels, and the
    assigning of signal letters thereto, and of designating their
    official number; and on all questions of interpretation growing out
    of the execution of the laws relating to these subjects, and
    relating to the collection of tonnage tax, and to the refund of
    such tax when collected erroneously or illegally, his decision
    shall be final.

-SOURCE-
    (July 5, 1884, ch. 221, Sec. 3, 23 Stat. 119; June 30, 1932, ch.
    314, Secs. 501, 502(b), 47 Stat. 415; May 27, 1936, ch. 463, Sec.
    1, 49 Stat. 1380; 1946 Reorg. Plan No. 3, Secs. 101-104, eff. July
    16, 1946, 11 F.R. 7875, 60 Stat. 1097.)

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      For transfer of functions, personnel, assets, and liabilities of
    the United States Customs Service of the Department of the
    Treasury, including functions of the Secretary of the Treasury
    relating thereto, to the Secretary of Homeland Security, and for
    treatment of related references, see sections 203(1), 551(d),
    552(d), and 557 of Title 6, Domestic Security, and the Department
    of Homeland Security Reorganization Plan of November 25, 2002, as
    modified, set out as a note under section 542 of Title 6.
      For transfer of functions of other officers, employees, and
    agencies of Department of the Treasury, with certain exceptions, to
    Secretary of the Treasury with power to delegate, see Reorg. Plan
    No. 26 of 1950, Secs. 1, 2, eff. July 31, 1950, 15 F.R. 4935, 64
    Stat. 1280, 1281, set out in the Appendix to Title 5, Government
    Organization and Employees. Commissioner of Customs, referred to in
    text, was an officer of Department of the Treasury.
      "Commissioner of Customs" substituted in text for "Director of
    the Bureau of Marine Inspection and Navigation" on authority of
    Reorg. Plan No. 3 of 1946, Secs. 101-104, set out as a note
    preceding section 3 of this Appendix.
      Previously, "Commissioner of Navigation" changed to "Director,
    Bureau of Navigation and Steamboat Inspection", and then to
    "Director of the Bureau of Marine Inspection and Navigation" by
    acts June 30, 1932, and May 27, 1936. See note set out preceding
    section 3 of this Appendix.

    ADMINISTRATIVE DELEGATION OF FUNCTIONS BY SECRETARY OF THE TREASURY
      Administrative delegation of functions by Secretary of the
    Treasury, see note set out preceding section 3 of this Appendix.

-End-

-CITE-
    46 USC APPENDIX Sec. 9                                      01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 1 - ADMINISTRATION OF SHIPPING LAWS

-HEAD-
    Sec. 9. Delegation of classification functions

-STATUTE-
    (a), (b) Repealed. Pub. L. 98-89, Sec. 4(b), Aug. 26, 1983, 97
      Stat. 600
    (c) Report on delegation of classification functions
      The Secretary of the department in which the Coast Guard is
    operating shall report to the Congress on the implementation of
    subsections (a) and (b) of this section within 6 months of December
    29, 1981, and annually thereafter for 3 years. Such report shall
    include the views of the affected industry on the implementation of
    those subsections.
    (d) Repealed. Pub. L. 98-89, Sec. 4(b), Aug. 26, 1983, 97 Stat. 600

-SOURCE-
    (July 5, 1884, ch. 221, Sec. 8, as added Pub. L. 97-136, Sec. 9,
    Dec. 29, 1981, 95 Stat. 1706; amended Pub. L. 97-322, title I, Sec.
    109, Oct. 15, 1982, 96 Stat. 1584; Pub. L. 98-89, Sec. 4(b), Aug.
    26, 1983, 97 Stat. 600.)

-MISC1-
                                AMENDMENTS                            
      1983 - Subsecs. (a), (b), (d). Pub. L. 98-89 struck out subsecs.
    (a), (b), and (d). See section 3316 of Title 46, Shipping.
      1982 - Subsec. (d). Pub. L. 97-322 added subsec. (d).

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      For transfer of authorities, functions, personnel, and assets of
    the Coast Guard, including the authorities and functions of the
    Secretary of Transportation relating thereto, to the Department of
    Homeland Security, and for treatment of related references, see
    sections 468(b), 551(d), 552(d), and 557 of Title 6, Domestic
    Security, and the Department of Homeland Security Reorganization
    Plan of November 25, 2002, as modified, set out as a note under
    section 542 of Title 6.

-End-

-CITE-
    46 USC APPENDIX CHAPTER 2 - DOCUMENTATION,
           RECORDING, AND MEASUREMENT                      01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 2 - DOCUMENTATION, RECORDING, AND MEASUREMENT

-HEAD-
           CHAPTER 2 - DOCUMENTATION, RECORDING, AND MEASUREMENT       

-MISC1-
                     SUBCHAPTER I - GENERAL PROVISIONS                 
    Sec.                                                     
    14.         Wrecked vessels.                                      
    42.         Oath on entry as to ownership.                        
    57.         Production of certificate on entry.                   
    59.         Penalty for neglect by officers.                      

-End-

-CITE-
    46 USC APPENDIX SUBCHAPTER I - GENERAL
           PROVISIONS                                      01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 2 - DOCUMENTATION, RECORDING, AND MEASUREMENT
    SUBCHAPTER I - GENERAL PROVISIONS

-HEAD-
                     SUBCHAPTER I - GENERAL PROVISIONS                 

-End-

-CITE-
    46 USC APPENDIX Sec. 14                                     01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 2 - DOCUMENTATION, RECORDING, AND MEASUREMENT
    SUBCHAPTER I - GENERAL PROVISIONS

-HEAD-
    Sec. 14. Wrecked vessels

-STATUTE-
      The Secretary of Transportation may issue a certificate of
    documentation with a coastwise endorsement for any vessel wrecked
    on the coasts of the United States or her possessions or adjacent
    waters, when purchased by a citizen or citizens of the United
    States and thereupon repaired in a shipyard in the United States or
    her possessions, if it shall be proved to the satisfaction of the
    Secretary of Transportation, if he deems it necessary, through a
    board of three appraisers appointed by him, that the said repairs
    put upon such vessels (!1) are equal to three times the appraised
    salved value of the vessel: Provided, That the expense of the
    appraisal provided for shall be borne by the owner of the vessel:
    Provided further, That if any of the material matters of fact sworn
    to or represented by the owner, or at his instance, to obtain the
    register of any vessel are not true, there shall be a forfeiture to
    the United States of the vessel in respect to which the oath shall
    have been made, together with tackle, apparel, and furniture
    thereof.

-SOURCE-
    (R.S. Sec. 4136; Feb. 24, 1915, ch. 57, 38 Stat. 812; Pub. L. 103-
    182, title VI, Sec. 686(a)(4), Dec. 8, 1993, 107 Stat. 2220.)

-COD-
                               CODIFICATION                           
      R.S. Sec. 4136 derived from acts Dec. 23, 1852, ch. 4, 10 Stat.
    149; July 23, 1866, ch. 213, 14 Stat. 212.
      R.S. Sec. 4136 was repealed by act Feb. 22, 1906, ch. 500, 34
    Stat. 17, and was reenacted and revised by act Feb. 24, 1915.

-MISC1-
                                AMENDMENTS                            
      1993 - Pub. L. 103-182 substituted "The Secretary of
    Transportation may issue a certificate of documentation with a
    coastwise endorsement" for "The Secretary of Commerce may issue a
    register or enrollment" and "Secretary of Transportation," for
    "Secretary of Commerce,".

-FOOTNOTE-
    (!1) So in original. Probably should be "vessel".

-End-

-CITE-
    46 USC APPENDIX Sec. 42                                     01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 2 - DOCUMENTATION, RECORDING, AND MEASUREMENT
    SUBCHAPTER I - GENERAL PROVISIONS

-HEAD-
    Sec. 42. Oath on entry as to ownership

-STATUTE-
      Upon the entry of every vessel of the United States from any
    foreign port, if the same shall be at the port at which the owner
    or any of the part owners reside, such owner or part owner shall
    make oath that the register of such vessel contains the name or
    names of all the persons who are then owners of the vessel; or if
    any part of such vessel has been sold or transferred since the
    granting of such register, that such is the case, and that no
    foreign subject or citizen has, to the best of his knowledge and
    belief, any share, by way of trust, confidence, or otherwise, in
    such vessel. If the owner or any part owner does not reside at the
    port at which such vessel enters, the master shall make oath to the
    like effect. If the owner, or part owner, where there is one, or
    the master, where there is no owner, refuses so to swear, such
    vessel shall not be entitled to the privileges of a vessel of the
    United States.

-SOURCE-
    (R.S. Sec. 4173.)

-COD-
                               CODIFICATION                           
      R.S. Sec. 4173 derived from act Dec. 31, 1792, ch. 1, Sec. 17, 1
    Stat. 295.

-End-

-CITE-
    46 USC APPENDIX Sec. 57                                     01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 2 - DOCUMENTATION, RECORDING, AND MEASUREMENT
    SUBCHAPTER I - GENERAL PROVISIONS

-HEAD-
    Sec. 57. Production of certificate on entry

-STATUTE-
      The master or other person having the command or charge of any
    vessel, recorded in pursuance of title 48 of the Revised Statutes,
    shall, on entry of such vessel, produce the certificate of such
    record to the collector of the district where she is so entered;
    and in default thereof the vessel shall not be entitled to the
    privileges of a recorded vessel.

-SOURCE-
    (R.S. Sec. 4184.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Title 48 of the Revised Statutes, referred to in text, was in the
    original "this Title", meaning title 48 of the Revised Statutes,
    consisting of R.S. Secs. 4131 to 4305. For complete classification
    of R.S. Secs. 4131 to 4305 to the Code, see Tables.

-COD-
                               CODIFICATION                           
      R.S. Sec. 4184 derived from act Dec. 31, 1792, ch. 1, Sec. 24, 1
    Stat. 297.

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      All offices of collector of customs, comptroller of customs,
    surveyor of customs, and appraiser of merchandise in Bureau of
    Customs of Department of the Treasury to which appointments were
    required to be made by President with advice and consent of Senate
    ordered abolished with such offices to be terminated not later than
    Dec. 31, 1966, by Reorg. Plan No. 1 of 1965, eff. May 25, 1965, 30
    F.R. 7035, 79 Stat. 1317, set out in the Appendix to Title 5,
    Government Organization and Employees. All functions of offices
    eliminated were already vested in Secretary of the Treasury by
    Reorg. Plan No. 26 of 1950, eff. July 31, 1950, 15 F.R. 4935, 64
    Stat. 1280, set out in the Appendix to Title 5.

-End-

-CITE-
    46 USC APPENDIX Sec. 59                                     01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 2 - DOCUMENTATION, RECORDING, AND MEASUREMENT
    SUBCHAPTER I - GENERAL PROVISIONS

-HEAD-
    Sec. 59. Penalty for neglect by officers

-STATUTE-
      If any person authorized and required by title 48 of the Revised
    Statutes to perform, as an officer, any act or thing, willfully
    neglects to do or perform the same according to the true intent and
    meaning of title 48 of the Revised Statutes, he shall, if not
    subject to the penalty and disqualification prescribed in section
    4187 of the Revised Statutes, be punishable by a fine of $500 for
    the first offense, and by a like fine for the second offense, and
    shall thenceforth be rendered incapable of holding any office of
    trust or profit under the United States.

-SOURCE-
    (R.S. Sec. 4188.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Title 48 of the Revised Statutes, referred to in text, was in the
    original "this Title", meaning title 48 of the Revised Statutes,
    consisting of R.S. Secs. 4131 to 4305. For complete classification
    of R.S. Secs. 4131 to 4305 to the Code, see Tables.
      Section 4187 of the Revised Statutes, referred to in text, was
    classified to section 58 of former Title 46, Shipping, and was
    repealed by Pub. L. 96-594, title I, Sec. 127, Dec. 24, 1980, 94
    Stat. 3459.

-COD-
                               CODIFICATION                           
      R.S. Sec. 4188 derived from act Dec. 31, 1792, ch. 1, Sec. 26, 1
    Stat. 298.

-End-

-CITE-
    46 USC APPENDIX CHAPTER 3 - CLEARANCE AND ENTRY             01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 3 - CLEARANCE AND ENTRY

-HEAD-
                      CHAPTER 3 - CLEARANCE AND ENTRY                  

-MISC1-
    Sec.                                                     
    91.         Clearance; vessels.                                   
                  (a)  When required; vessels of United States.       
                  (b)  When required; other vessels.                  
                  (c)  Regulations.                                   
    97.         State inspection laws.                                
    98.         Conveyance of bullion, coin, notes, or bonds for
                 United States.                                       
    100.        Payment of fees on vessels outward bound.             
    104.        Reciprocal exemption of foreign yachts from charges
                 and tonnage taxes; licenses.                         
    111.        Documented vessels with registry endorsement in trade
                 with Canada.                                         

-End-

-CITE-
    46 USC APPENDIX Sec. 91                                     01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 3 - CLEARANCE AND ENTRY

-HEAD-
    Sec. 91. Clearance; vessels

-STATUTE-
    (a) When required; vessels of United States
      Except as otherwise provided by law, any vessel of the United
    States shall obtain clearance from the Customs Service before
    proceeding from a port or place in the United States - 
        (1) for a foreign port or place;
        (2) for another port or place in the United States if the
      vessel has on board foreign merchandise for which entry has not
      been made; or
        (3) outside the territorial sea to visit a hovering vessel or
      to receive merchandise while outside the territorial sea.
    (b) When required; other vessels
      Except as otherwise provided by law, any vessel that is not a
    vessel of the United States shall obtain clearance from the Customs
    Service before proceeding from a port or place in the United States
    - 
        (1) for a foreign port or place;
        (2) for another port or place in the United States; or
        (3) outside the territorial sea to visit a hovering vessel or
      to receive or deliver merchandise while outside the territorial
      sea.
    (c) Regulations
      The Secretary of the Treasury may by regulation - 
        (1) prescribe the manner in which clearance under this section
      is to be obtained, including the documents, data or information
      which shall be submitted or transmitted, pursuant to an
      authorized data interchange system, to obtain the clearance;
        (2) permit the Customs Service to grant clearance for a vessel
      under this section before all requirements for clearance are
      complied with, but only if the owner or operator of the vessel
      files a bond in an amount set by the Secretary of the Treasury
      conditioned upon the compliance by the owner or operator with all
      specified requirements for clearance within a time period (not
      exceeding 4 business days) established by the Secretary of the
      Treasury; and
        (3) authorize the Customs Service to permit clearance of any
      vessel to be obtained at a place other than a designated port of
      entry, under such conditions as he may prescribe.

-SOURCE-
    (R.S. Sec. 4197; Aug. 5, 1935, ch. 438, title II, Sec. 209, 49
    Stat. 526; June 16, 1938, ch. 476, Sec. 1, 52 Stat. 758; Sept. 1,
    1954, ch. 1213, title V, Sec. 501(a), 68 Stat. 1140; Pub. L. 103-
    182, title VI, Sec. 686(b), Dec. 8, 1993, 107 Stat. 2221; Pub. L.
    106-476, title I, Sec. 1452(a)(3), Nov. 9, 2000, 114 Stat. 2167.)

-COD-
                               CODIFICATION                           
      R.S. Sec. 4197 derived from act Mar. 2, 1799, ch. 22, Sec. 93, 1
    Stat. 698.

-MISC1-
                                AMENDMENTS                            
      2000 - Subsec. (a)(2). Pub. L. 106-476 struck out "bonded
    merchandise or" before "foreign merchandise".
      1993 - Pub. L. 103-182 amended section generally, substituting
    present provisions for provisions which directed master of any
    vessel bound to a foreign port to deliver to district collector a
    manifest of all cargo on board, subject to financial penalties for
    delivery of false manifest and detainment of vessel until penalty
    is paid, but authorizing Secretary of Commerce, in interest of
    expediting commerce, to make regulations permitting master to file
    incomplete manifest and grant vessel clearance upon filing a bond
    and making assurance that a completed manifest will be filed not
    later than the fourth business day after clearance of the vessel,
    with financial penalties and possible suit resulting from failure
    to file completed manifest when due.
      1954 - Act Sept. 1, 1954, exempted undocumented pleasure vessels
    of the United States from clearance requirements.
      1938 - Act June 16, 1938, inserted proviso and all that follows.
      1935 - Act Aug. 5, 1935, substituted second sentence for "If any
    vessel bound to a foreign port departs on her voyage to such
    foreign port without delivering such manifest and obtaining a
    clearance, as required, the master or other person having the
    charge or command of such vessel shall be liable to a penalty of
    $500 for every such offense."

                     EFFECTIVE DATE OF 2000 AMENDMENT                 
      Amendment by Pub. L. 106-476, except as otherwise provided,
    applicable with respect to goods entered or withdrawn from
    warehouse for consumption on or after the 15th day after Nov. 9,
    2000, see section 1471 of Pub. L. 106-476, set out as a note under
    section 58c of Title 19, Customs Duties.

                       CONSTRUCTION WITH OTHER LAWS                   
      Section 3 of act June 16, 1938, provided that the amendments to
    this section by section 1 of the act, should not affect any other
    existing law.

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      For transfer of functions, personnel, assets, and liabilities of
    the United States Customs Service of the Department of the
    Treasury, including functions of the Secretary of the Treasury
    relating thereto, to the Secretary of Homeland Security, and for
    treatment of related references, see sections 203(1), 551(d),
    552(d), and 557 of Title 6, Domestic Security, and the Department
    of Homeland Security Reorganization Plan of November 25, 2002, as
    modified, set out as a note under section 542 of Title 6.

-EXEC-
                     TERRITORIAL SEA OF UNITED STATES                 
      For extension of territorial sea of United States, see Proc. No.
    5928, set out as a note under section 1331 of Title 43, Public
    Lands.

-End-

-CITE-
    46 USC APPENDIX Sec. 97                                     01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 3 - CLEARANCE AND ENTRY

-HEAD-
    Sec. 97. State inspection laws

-STATUTE-
      The collectors and other officers of the customs shall pay due
    regard to the inspection laws of the States in which they may
    respectively act, in such manner that no vessel having on board
    goods liable to inspection shall be cleared until the master, or
    other proper person, shall have produced such certificate that all
    such goods have been duly inspected, as the laws of the respective
    States may require to be produced to collectors or other officers
    of the customs.

-SOURCE-
    (R.S. Sec. 4202.)

-COD-
                               CODIFICATION                           
      R.S. Sec. 4202 derived from act Mar. 2, 1799, ch. 22, Sec. 93, 1
    Stat. 699.

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      All offices of collector of customs, comptroller of customs,
    surveyor of customs, and appraiser of merchandise in Bureau of
    Customs of Department of the Treasury to which appointments were
    required to be made by President with advice and consent of Senate
    ordered abolished with such offices to be terminated not later than
    Dec. 31, 1966, by Reorg. Plan No. 1 of 1965, eff. May 25, 1965, 30
    F.R. 7035, 79 Stat. 1317, set out in the Appendix to Title 5,
    Government Organization and Employees. All functions of offices
    eliminated were already vested in Secretary of the Treasury by
    Reorg. Plan No. 26 of 1950, eff. July 31, 1950, 15 F.R. 4935, 64
    Stat. 1280, set out in the Appendix to Title 5.

-End-

-CITE-
    46 USC APPENDIX Sec. 98                                     01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 3 - CLEARANCE AND ENTRY

-HEAD-
    Sec. 98. Conveyance of bullion, coin, notes, or bonds for United
      States

-STATUTE-
      All vessels belonging to citizens of the United States, and bound
    from any port in the United States to any other port therein, or to
    any foreign port, or from any foreign port to any port in the
    United States, shall, before clearance, receive on board all such
    bullion, coin, United States notes and bonds and other securities,
    as the Government of the United States or any department thereof,
    or any minister, consul, vice consul, or other agent of the United
    States abroad, shall offer, and shall securely convey and promptly
    deliver the same to the proper authorities or consignees, on
    arriving at the port of destination; and shall receive for such
    service such reasonable compensation as may be allowed to other
    carriers in the ordinary transactions of business.

-SOURCE-
    (R.S. Sec. 4204; Apr. 5, 1906, ch. 1366, Sec. 3, 34 Stat. 100.)

-COD-
                               CODIFICATION                           
      R.S. Sec. 4204 derived from act July 4, 1864, ch. 249, Sec. 10,
    13 Stat. 392.
      Reference to "or commercial" before "or other agent" was omitted
    in view of the abolition of the grade of commercial agent by act
    Apr. 5, 1906.

-End-

-CITE-
    46 USC APPENDIX Sec. 100                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 3 - CLEARANCE AND ENTRY

-HEAD-
    Sec. 100. Payment of fees on vessels outward bound

-STATUTE-
      Previous to a clearance being granted to any vessel, outward
    bound, the legal fees which shall have accrued on such vessel shall
    be paid at the offices where such fees are respectively payable;
    and receipts for the same shall be produced to the collector or
    other officer whose duty it may be to grant clearances, before a
    clearance is granted.

-SOURCE-
    (R.S. Sec. 4206.)

-COD-
                               CODIFICATION                           
      R.S. Sec. 4206 derived from acts Mar. 3, 1797, ch. 9, Sec. 5, 1
    Stat. 503; Mar. 2, 1799, ch. 22, Sec. 93, 1 Stat. 699.

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      All offices of collector of customs, comptroller of customs,
    surveyor of customs, and appraiser of merchandise in Bureau of
    Customs of Department of the Treasury to which appointments were
    required to be made by President with advice and consent of Senate
    ordered abolished with such offices to be terminated not later than
    Dec. 31, 1966, by Reorg. Plan No. 1 of 1965, eff. May 25, 1965, 30
    F.R. 7035, 79 Stat. 1317, set out in the Appendix to Title 5,
    Government Organization and Employees. All functions of offices
    eliminated were already vested in Secretary of the Treasury by
    Reorg. Plan No. 26 of 1950, eff. July 31, 1950, 15 F.R. 4935, 64
    Stat. 1280, set out in the Appendix to Title 5.

-End-

-CITE-
    46 USC APPENDIX Sec. 104                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 3 - CLEARANCE AND ENTRY

-HEAD-
    Sec. 104. Reciprocal exemption of foreign yachts from charges and
      tonnage taxes; licenses

-STATUTE-
      Whenever it shall be made to appear to the satisfaction of the
    President of the United States that yachts used and employed
    exclusively as pleasure vessels and belonging to any resident of
    the United States are allowed to arrive at and depart from any
    foreign port and to cruise in the waters of such port without
    entering or clearing at the customhouse thereof and without the
    payment of any charges for entering or clearing, dues, duty per
    ton, tonnage taxes or charges for cruising licenses, the
    Commissioner of Customs may authorize and direct the customs
    authorities at the various ports of entry of the United States to
    allow yachts from such foreign port used and employed exclusively
    as pleasure vessels to arrive at and depart from any port of the
    United States and to cruise in waters of the United States without
    the payment of any charges for entering or clearing, dues, duty per
    ton, or tonnage taxes, but the Commissioner of Customs may, in his
    discretion, direct that such foreign yachts shall be required to
    obtain licenses to cruise, in a form prescribed by him, before they
    shall be allowed under the provisions of this section to cruise in
    waters of the United States. Such licenses shall be issued without
    cost to such yachts and shall prescribe such limitations as to
    length of time, direction, and place of cruising and action, and
    such other particulars as the Commissioner of Customs may deem
    proper.

-SOURCE-
    (May 28, 1908, ch. 212, Sec. 5, 35 Stat. 425; Aug. 5, 1909, ch. 6,
    Sec. 37, 36 Stat. 112; Mar. 4, 1913, ch. 141, Sec. 1, 37 Stat. 736;
    1946 Reorg. Plan No. 3, Secs. 101-104, eff. July 16, 1946, 11 F.R.
    7875, 60 Stat. 1097; June 26, 1948, ch. 673, 62 Stat. 1051.)

-COD-
                               CODIFICATION                           
      This section was not amended or repealed by section 36 of the
    Payne-Aldrich Tariff Act of Aug. 5, 1909, ch. 6, 36 Stat. 111,
    relating to tonnage duties, but so much of it as related to yachts
    built outside the United States and owned by citizens of the United
    States was repealed by section 37 of that act, which was itself
    repealed by the Underwood Tariff Act of Oct. 13, 1913, ch. 16, Sec.
    IV, S, 38 Stat. 201.
      In text, the words "and subports" and "or subport" following
    "various ports" and "arrive at and depart from any port"
    respectively, were omitted.
      By subdivision II of the President's plan of reorganization of
    the Custom Service under the grant of authority contained in act
    Aug. 24, 1912, ch. 355, Sec. 1, 37 Stat. 434, subports of entry not
    therein designated ports of entry were abolished and the use of the
    term "subport of entry" was discontinued.

-MISC1-
                                AMENDMENTS                            
      1948 - Act June 26, 1948, removed the discrimination against
    yachts which do not belong to "regularly organized yacht clubs".

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      For transfer of functions, personnel, assets, and liabilities of
    the United States Customs Service of the Department of the
    Treasury, including functions of the Secretary of the Treasury
    relating thereto, to the Secretary of Homeland Security, and for
    treatment of related references, see sections 203(1), 551(d),
    552(d), and 557 of Title 6, Domestic Security, and the Department
    of Homeland Security Reorganization Plan of November 25, 2002, as
    modified, set out as a note under section 542 of Title 6.
      For transfer of functions of other officers, employees, and
    agencies of Department of the Treasury, with certain exceptions, to
    Secretary of the Treasury with power to delegate, see Reorg. Plan
    No. 26 of 1950, Secs. 1, 2, eff. July 31, 1950, 15 F.R. 4935, 64
    Stat. 1280, 1281, set out in the Appendix to Title 5, Government
    Organization and Employees. Commissioner of Customs, referred to in
    text, was an officer of Department of the Treasury.
      "Commissioner of Customs" substituted in text for "Secretary of
    Commerce" on authority of Reorg. Plan No. 3 of 1946, Secs. 101-104,
    set out as a note preceding section 3 of this Appendix.
      Upon incorporation into the Code, "Secretary of Commerce"
    substituted for "Secretary of Commerce and Labor" to conform to act
    Mar. 4, 1913.

                          DELEGATION OF FUNCTIONS                      
      For delegation to Secretary of the Treasury of authority vested
    in President by this section, see Ex. Ord. No. 10289, eff. Sept.
    17, 1951, 16 F.R. 9499, set out as a note under section 301 of
    Title 3, The President.

    ADMINISTRATIVE DELEGATION OF FUNCTIONS BY SECRETARY OF THE TREASURY
      Administrative delegation of functions by Secretary of the
    Treasury, see note set out preceding section 3 of this Appendix.

-End-

-CITE-
    46 USC APPENDIX Sec. 111                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 3 - CLEARANCE AND ENTRY

-HEAD-
    Sec. 111. Documented vessels with registry endorsement in trade
      with Canada

-STATUTE-
      Documented vessels with a registry endorsement, engaged in
    foreign trade on the Great Lakes or their tributary or connecting
    waters in trade with Canada, shall not thereby become liable to the
    payment of entry and clearance fees.

-SOURCE-
    (R.S. Sec. 2793; Sept. 25, 1941, ch. 423, 55 Stat. 733; Pub. L. 103-
    182, title VI, Sec. 686(a)(1), Dec. 8, 1993, 107 Stat. 2220; Pub.
    L. 104-324, title XI, Sec. 1115(b)(4), Oct. 19, 1996, 110 Stat.
    3972.)

-COD-
                               CODIFICATION                           
      R.S. Sec. 2793 derived from J. Res. Feb. 10, 1871, No. 27, Sec.
    2, 16 Stat. 595.
      Provisions of this section are also classified to section 288 of
    Title 19, Customs Duties.
      Provision of R.S. Sec. 2793 respecting tonnage duties is
    classified to section 123 of this Appendix.

-MISC1-
                                AMENDMENTS                            
      1996 - Pub. L. 104-324 substituted "registry endorsement, engaged
    in foreign trade on the Great Lakes or their tributary or
    connecting waters in trade with Canada," for "coastwise, Great
    Lakes endorsement, departing from or arriving at a port in one
    district to or from a port in another district, and also touching
    at intermediate foreign ports," and struck out ", as if from or to
    foreign ports" after "clearance fees".
      1993 - Pub. L. 103-182 substituted "Documented vessels with a
    coastwise, Great Lakes endorsement," for "Enrolled or licensed
    vessels engaged in the foreign and coasting trade on the northern,
    northeastern, and northwestern frontiers of the United States," and
    a period for "; but such vessel shall, notwithstanding, be required
    to enter and clear; except that when such vessels are on such
    voyages on the Great Lakes and touch at foreign ports for the
    purpose of taking on bunker fuel only, they may be exempted from
    entering and clearing under such rules and regulations as the
    Secretary of Commerce may prescribe, notwithstanding any other
    provisions of law: Provided, That this exception shall not apply to
    such vessels if, while at such foreign port, they land or take on
    board any passengers, or any merchandise other than bunker fuel,
    receive orders, discharge any seamen by mutual consent, or engage
    any seamen to replace those discharged by mutual consent, or
    transact any other business save that of taking on bunker fuel."
      1941 - Act Sept. 25, 1941, inserted exception and proviso at end
    of section.

-End-

-CITE-
    46 USC APPENDIX CHAPTER 4 - TONNAGE DUTIES                  01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 4 - TONNAGE DUTIES

-HEAD-
                        CHAPTER 4 - TONNAGE DUTIES                    

-MISC1-
    Sec.                                                     
    121.        Amount of tonnage duties.                             
    122.        Coasting and fishing vessels.                         
    123.        Documented vessels with registry endorsement in trade
                 with Canada.                                         
    124.        Passenger vessels trading between ports of United
                 States and foreign ports.                            
    125.        Vessels making daily trips on interior waters.        
    128.        Light money.                                          
    129.        Exemption of unregistered vessels owned by citizens.  
    132.        Vessels not entering by sea.                          
    133.        Hospital ships in time of war.                        
    134.        Designation by President of hospital ships exempted.  
    135.        Rights under treaties preserved.                      

-End-

-CITE-
    46 USC APPENDIX Sec. 121                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 4 - TONNAGE DUTIES

-HEAD-
    Sec. 121. Amount of tonnage duties

-STATUTE-
      Upon vessels which shall be entered in the United States from any
    foreign port or place there shall be paid duties as follows: On
    vessels built within the United States but belonging wholly or in
    part to subjects of foreign powers, at the rate of thirty cents per
    ton; on other vessels not of the United States, at the rate of
    fifty cents per ton, and any vessel any officer of which shall not
    be a citizen of the United States shall pay a tax of fifty cents
    per ton.
      A tonnage duty of 9 cents per ton, not to exceed in the aggregate
    45 cents per ton in any one year, for fiscal years 1991 through
    2002, and 2 cents per ton, not to exceed in the aggregate 10 cents
    per ton in any one year, for each fiscal year thereafter is imposed
    at each entry on all vessels which shall be entered in any port of
    the United States from any foreign port or place in North America,
    Central America, the West India Islands, the Bahama Islands, the
    Bermuda Islands, or the coast of South America bordering on the
    Caribbean Sea, or Newfoundland, and on all vessels (except vessels
    of the United States, recreational vessels, and barges, as those
    terms are defined in section 2101 of title 46) that depart a United
    States port or place and return to the same port or place without
    being entered in the United States from another port or place; and
    a duty of 27 cents per ton, not to exceed $1.35 per ton per annum,
    for fiscal years 1991 through 2002, and 6 cents per ton, not to
    exceed 30 cents per ton per annum, for each fiscal year thereafter
    is imposed at each entry on all vessels which shall be entered in
    any port of the United States from any other foreign port. However,
    neither duty shall be imposed on vessels in distress or not engaged
    in trade.
      Upon every vessel not of the United States, which shall be
    entered in one district from another district, having on board
    goods, wares, or merchandise taken in one district to be delivered
    in another district, duties shall be paid at the rate of 50 cents
    per ton: Provided, That no such duty shall be required where a
    vessel owned by citizens of the United States, but not a vessel of
    the United States, after entering an American port, shall, before
    leaving the same, be registered as a vessel of the United States.
    On all foreign vessels which shall be entered in the United States
    from any foreign port or place, to and with which vessels of the
    United States are not ordinarily permitted to enter and trade,
    there shall be paid a duty at the rate of $2 per ton; and none of
    the duties on tonnage above mentioned shall be levied on the
    vessels of any foreign nation if the President of the United States
    shall be satisfied that the discriminating or countervailing duties
    of such foreign nations, so far as they operate to the disadvantage
    of the United States, have been abolished. Any rights or privileges
    acquired by any foreign nation under the laws and treaties of the
    United States relative to the duty of tonnage on vessels shall not
    be impaired; and any vessel any officer of which shall not be a
    citizen of the United States shall pay a tax of 50 cents per ton.

-SOURCE-
    (R.S. Sec. 4219; Feb. 27, 1877, ch. 69, Sec. 1, 19 Stat. 250; June
    26, 1884, ch. 121, Sec. 14, 23 Stat. 57; Apr. 4, 1888, ch. 61, Sec.
    1, 25 Stat. 80; Aug. 5, 1909, ch. 6, Sec. 36, 36 Stat. 111; Mar. 4,
    1915, ch. 171, Sec. 1, 38 Stat. 1193; Pub. L. 101-508, title X,
    Sec. 10402(a), Nov. 5, 1990, 104 Stat. 1388-398; Pub. L. 103-66,
    title IX, Sec. 9001(a), (c)(1), Aug. 10, 1993, 107 Stat. 402; Pub.
    L. 105-33, title IX, Sec. 9201(a), Aug. 5, 1997, 111 Stat. 671.)

-COD-
                               CODIFICATION                           
      R.S. Sec. 4219 derived from acts July 20, 1790, ch. 30, Sec. 1, 1
    Stat. 135; Apr. 27, 1816, ch. 107, Sec. 6, 3 Stat. 314; Jan. 14,
    1817, ch. 3, Sec. 1, 3 Stat. 344; Mar. 1, 1817, ch. 31, Sec. 6, 3
    Stat. 352; Mar. 3, 1817, ch. 50, 3 Stat. 369; May 31, 1830, ch.
    219, Sec. 1, 4 Stat. 425; July 14, 1862, ch. 163, Sec. 15, 12 Stat.
    558; June 28, 1864, ch. 170, 13 Stat. 201; Mar. 3, 1865, ch. 80,
    Sec. 4, 13 Stat. 493.
      The first and third paragraphs of this section, with the
    exception of the proviso in the third paragraph, are from R.S. Sec.
    4219.
      A portion of that section omitted here provided that, in addition
    to the tonnage duty thereby imposed there should be paid a tax, at
    the rate of thirty cents per ton, on vessels entered at any custom
    house from any foreign port or place.
      It was probably omitted as superseded and repealed by act June
    26, 1884, as amended by acts June 19, 1886, ch. 421, Sec. 11, 24
    Stat. 81; Apr. 4, 1888, and Aug. 5, 1909.
      Another portion of the original text, concerning the impairment
    of rights and privileges of foreign nations under laws and treaties
    was probably omitted as sufficiently covered by the similar
    provision near the end of the section.
      The second paragraph of this section is from act Aug. 5, 1909,
    Sec. 36. Portions of that paragraph omitted here, fixed the time of
    its taking effect, repealed R.S. Sec. 4232, act June 19, 1886, ch.
    421, Secs. 11 and 12, 24 Stat. 81, and so much of R.S. Sec. 4219 as
    conflicted therewith, and provided that it should not be construed
    to amend or repeal R.S. Sec. 2792, as amended, act May 28, 1908,
    ch. 212, Sec. 5, 35 Stat. 425, or R.S. Sec. 2793. That paragraph
    was expressly excepted from repeal by Underwood Tariff Act Oct. 13,
    1913, ch. 16, Sec. IV, S, 38 Stat. 201.
      The proviso in the third paragraph of this section is based on
    act Mar. 4, 1915. Other provisions of that act are classified to
    section 128 of this Appendix, and sections 128 and 131 of Title 19,
    Customs Duties.
      So much of act June 19, 1886, ch. 421, Sec. 11, 24 Stat. 81, as
    exempted any yacht built outside the United States, and owned,
    chartered or used by a citizen of the United States, from the
    payment of tonnage taxes, was repealed by act Feb. 5, 1897, ch.
    167, Sec. 2, 29 Stat. 511. Act June 19, 1886, having been repealed
    as above stated section 2 of act Feb. 5, 1897, ch. 167, is no
    longer operative.
      Section 12 of act June 19, 1886, which was repealed by the Payne-
    Aldrich Tariff Act of Aug. 5, 1909, Sec. 36, directed the
    President to cause the Governments of foreign countries, which, at
    any of their ports, imposed on American vessels a tonnage tax or
    light house dues, etc., to be informed of the provisions of section
    11, and invited to co-operate with the Government of the United
    States in abolishing light house dues, etc.
      R.S. Sec. 4223, provided that the tonnage duty imposed on all
    vessels engaged in foreign commerce should be levied but once
    within a year, and that when paid no further tonnage tax should be
    collected within one year from the date of such payment, not being
    applicable, however, to foreign vessels entered in the United
    States from any foreign port, to and with which vessels of the
    United States were not ordinarily permitted to enter and trade.
      R.S. Sec. 4224, provided that vessels paying tonnage duties once
    a year should pay them at their first clearance from or entry at,
    according to priority, a custom house in the United States in each
    calendar year, but that it should not prevent customs officers from
    collecting such tonnage duty at the entry of vessels at their
    respective custom houses during the calendar year if the same had
    not previously been paid for such year.
      Both these sections were repealed by act June 26, 1884, as
    amended by act June 19, 1886, ch. 421, Sec. 11, 24 Stat. 81.
      Act June 19, 1878, ch. 318, 20 Stat. 171, amended R.S. Sec. 2931,
    by providing that it should not apply to cases of the payment of
    tonnage tax on vessels where the Secretary of the Treasury and the
    Attorney General were satisfied that the exaction of the tax was in
    contravention of treaty provisions. R.S. Sec. 2931, which provided
    for an appeal to the Secretary of the Treasury from the decision of
    the collector of customs as to the rate and amount of tonnage
    duties, etc., was repealed by act June 10, 1890, ch. 407, Sec. 29,
    26 Stat. 141. Act June 19, 1878, further provided that the
    Secretary of the Treasury might draw his warrant for the refund of
    taxes so illegally exacted, as provided for by R.S. Sec.
    3012(!1/2). R.S. Sec. 3012(!1/2), was also repealed by act June 10,
    1890, Sec. 29. By the repeal of R.S. Secs. 2931, 3012 1/2 , act
    June 19, 1878, ch. 318, became inoperative.
      Act Feb. 10, 1900, ch. 15, Sec. 2, 31 Stat. 27, authorized the
    Secretary of the Treasury to refund tonnage taxes and light dues
    imposed on vessels owned by citizens of Cuba entering ports of the
    United States since Apr. 11, 1899, which had been in excess of the
    taxes prescribed by act June 19, 1886, ch. 421, Sec. 11, 24 Stat.
    81. It was doubtless omitted from the code as executed.
      R.S. Sec. 4232, repealed by the same section, provided that mail
    steamships employed in the mail-service between the United States
    and Brazil, should be exempt from all port charges and customs dues
    at the port of departure and arrival in the United States, if and
    so long as a similar immunity from port charges and custom-house
    charges was granted by the government of Brazil.
      Section 37 of act Aug. 5, 1909, which provided for a tonnage tax
    on foreign built yachts, pleasure boats or vessels, not used or
    intended to be used for trade, owned, or chartered for more than
    six months by citizens of the United States, or, in lieu thereof,
    an ad valorem duty, and entitled such yachts, etc., upon payment
    thereof to all the privileges, subjected them to all the
    requirements prescribed by R.S. Secs. 4214, 4215, 4217, 4218, and
    acts amendatory thereof, in the same manner as if they had been
    built in the United States, subjected such yachts, etc., to tonnage
    duty and light money only in the same manner as if they had been
    built in the United States, repealed so much of act May 28, 1908,
    ch. 212, Sec. 5, 35 Stat. 425, as related to yachts built outside
    the United States and owned by citizens of the United States, and
    provided that the section should not apply to foreign built vessels
    admitted to American registry, was repealed by the Underwood Tariff
    Act of Oct. 13, 1913, ch. 16, Sec. IV, S, 38 Stat. 201.
      Act June 5, 1920, ch. 250, Sec. 34, 41 Stat. 1007, directed the
    President to give notice to terminate provisions of treaties or
    conventions restricting the right of the United States to impose
    discriminating customs duties and tonnage dues. It was doubtless
    omitted as temporary and executed.

-MISC1-
                                AMENDMENTS                            
      1997 - Second par. Pub. L. 105-33 substituted "for fiscal years
    1991 through 2002," for "for fiscal years 1991, 1992, 1993, 1994,
    1995, 1996, 1997, 1998," in two places.
      1993 - Second par. Pub. L. 103-66, Sec. 9001(c)(1), made
    technical correction to directory language of Pub. L. 101-508. See
    1990 Amendment note below.
      Pub. L. 103-66, Sec. 9001(a), substituted "1995, 1996, 1997,
    1998," for "and 1995," in two places, "port or place; and a duty"
    for "port or place, and a duty", and "port. However, neither duty
    shall be imposed on vessels in distress or not engaged in trade"
    for "port, not, however, to include vessels in distress or not
    engaged in trade".
      1990 - Second par. Pub. L. 101-508, as amended by Pub. L. 103-66,
    Sec. 9001(c)(1), substituted "9 cents per ton, not to exceed in the
    aggregate 45 cents per ton in any one year, for fiscal years 1991,
    1992, 1993, 1994, and 1995, and 2 cents per ton, not to exceed in
    the aggregate 10 cents per ton in any one year, for each fiscal
    year thereafter" for "two cents per ton, not to exceed in the
    aggregate ten cents per ton in any one year,", inserted "and on all
    vessels (except vessels of the United States, recreational vessels,
    and barges, as those terms are defined in section 2101 of title 46)
    that depart a United States port or place and return to the same
    port or place without being entered in the United States from
    another port or place," after "Newfoundland,", and substituted "27
    cents per ton, not to exceed $1.35 per ton per annum, for fiscal
    years 1991, 1992, 1993, 1994, and 1995, and 6 cents per ton, not to
    exceed 30 cents per ton per annum, for each fiscal year thereafter"
    for "six cents per ton, not to exceed thirty cents per ton per
    annum,".

                     EFFECTIVE DATE OF 1993 AMENDMENT                 
      Section 9001(c)(2) of Pub. L. 103-66 provided that: "The
    amendment made by paragraph (1) [amending this section] shall be
    effective on and after November 5, 1990."

                            OFFSETTING RECEIPTS                        
      Section 10402(c) of Pub. L. 101-508 provided that: "Increased
    tonnage charges collected as a result of the amendments made by
    subsection (a) [amending this section] shall be deposited in the
    general fund of the Treasury as offsetting receipts of the
    department in which the Coast Guard is operating and ascribed to
    Coast Guard activities."
      [For transfer of authorities, functions, personnel, and assets of
    the Coast Guard, including the authorities and functions of the
    Secretary of Transportation relating thereto, to the Department of
    Homeland Security, and for treatment of related references, see
    sections 468(b), 551(d), 552(d), and 557 of Title 6, Domestic
    Security, and the Department of Homeland Security Reorganization
    Plan of November 25, 2002, as modified, set out as a note under
    section 542 of Title 6.]

     NONLIABILITY OF CUSTOMS COLLECTORS AND VESSELS BEFORE OCTOBER 1,
                                   1940
      Act May 16, 1947, ch. 71, 61 Stat. 97, made collectors of customs
    and vessels themselves not liable for failure to collect special
    tonnage duties or light money under this section or section 128 of
    this Appendix in connection with the entry prior to Oct. 1, 1940,
    of any foreign vessel from a foreign port.

-End-

-CITE-
    46 USC APPENDIX Sec. 122                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 4 - TONNAGE DUTIES

-HEAD-
    Sec. 122. Coasting and fishing vessels

-STATUTE-
      No vessel belonging to any citizen of the United States, trading
    from one port within the United States to another port within the
    United States, or employed in the bank, whale, or other fisheries,
    shall be subject to tonnage tax or duty, if such vessel be
    licensed, registered, or enrolled.

-SOURCE-
    (R.S. Sec. 4220.)

-COD-
                               CODIFICATION                           
      R.S. Sec. 4220 derived from acts July 14, 1870, ch. 255, Sec. 25,
    16 Stat. 269; Apr. 18, 1874, ch. 110, 18 Stat. 31.

-End-

-CITE-
    46 USC APPENDIX Sec. 123                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 4 - TONNAGE DUTIES

-HEAD-
    Sec. 123. Documented vessels with registry endorsement in trade
      with Canada

-STATUTE-
      Documented vessels with a registry endorsement, engaged in
    foreign trade on the Great Lakes or their tributary or connecting
    waters in trade with Canada, shall not thereby become liable to the
    payment of tonnage tax.

-SOURCE-
    (R.S. Sec. 2793; Sept. 25, 1941, ch. 423, 55 Stat. 733; Pub. L. 103-
    182, title VI, Sec. 686(a)(1), Dec. 8, 1993, 107 Stat. 2220; Pub.
    L. 104-324, title XI, Sec. 1115(b)(4), Oct. 19, 1996, 110 Stat.
    3972.)

-COD-
                               CODIFICATION                           
      R.S. Sec. 2793 derived from J. Res. Feb. 10, 1871, No. 27, Sec.
    2, 16 Stat. 595.
      Provision of R.S. Sec. 2793 respecting payment of entry and
    clearance fee is classified to section 111 of this Appendix, and
    section 288 of Title 19, Customs Duties.

-MISC1-
                                AMENDMENTS                            
      1996 - Pub. L. 104-324 substituted "registry endorsement, engaged
    in foreign trade on the Great Lakes or their tributary or
    connecting waters in trade with Canada," for "coastwise, Great
    Lakes endorsement, departing from or arriving at a port in one
    district to or from a port in another district, and also touching
    at intermediate foreign ports," and struck out ", as if from or to
    foreign ports" after "tonnage tax".
      1993 - Pub. L. 103-182 substituted "Documented vessels with a
    coastwise, Great Lakes endorsement," for "Enrolled or licensed
    vessels engaged in the foreign and coasting trade on the northern,
    northeastern, and northwestern frontiers of the United States," and
    a period for "; but such vessel shall, notwithstanding, be required
    to enter and clear; except that when such vessels are on such
    voyages on the Great Lakes and touch at foreign ports for the
    purpose of taking on bunker fuel only, they may be exempted from
    entering and clearing under such rules and regulations as the
    Secretary of Commerce may prescribe, notwithstanding any other
    provisions of law: Provided, That this exception shall not apply to
    such vessels if, while at such foreign port, they land or take on
    board any passengers, or any merchandise other than bunker fuel,
    receive orders, discharge any seamen by mutual consent, or engage
    any seamen to replace those discharged by mutual consent, or
    transact any other business save that of taking on bunker fuel."
      1941 - Act Sept. 25, 1941, inserted exception and proviso at end
    of section.

-End-

-CITE-
    46 USC APPENDIX Sec. 124                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 4 - TONNAGE DUTIES

-HEAD-
    Sec. 124. Passenger vessels trading between ports of United States
      and foreign ports

-STATUTE-
      Any passenger vessel engaged triweekly or oftener in trade
    between ports of the United States and foreign ports shall be
    exempt from tonnage taxes while such service triweekly or oftener
    is maintained.

-SOURCE-
    (R.S. Sec. 2792; May 28, 1908, ch. 212, Sec. 1, 35 Stat. 424.)

-COD-
                               CODIFICATION                           
      R.S. Sec. 2792 derived from act June 4, 1872, ch. 280, 17 Stat.
    214.
      Provisions of R.S. Sec. 2792 as originally enacted were
    classified to section 110 of former Title 46, Shipping, and, in
    part, to section 289 of Title 19, Customs Duties.
      The provision of this section which was added to R.S. Sec. 2792
    by act May 28, 1908, was also classified, in part, to section 112
    of former Title 46 and section 289 of Title 19.

-End-

-CITE-
    46 USC APPENDIX Sec. 125                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 4 - TONNAGE DUTIES

-HEAD-
    Sec. 125. Vessels making daily trips on interior waters

-STATUTE-
      In cases of vessels making regular daily trips between any port
    of the United States and any port in the Dominion of Canada, wholly
    upon interior waters not navigable to the ocean, no tonnage fees
    shall be charged against such vessel by the officers of the United
    States, except upon the first clearing of such vessel in each year.

-SOURCE-
    (R.S. Sec. 4221.)

-COD-
                               CODIFICATION                           
      R.S. Sec. 4221 derived from act Mar. 3, 1869, ch. 125, Sec. 3, 15
    Stat. 322.
      Provision of R.S. Sec. 4221 respecting clearance fees was
    classified to section 113 of former Title 46, Shipping.

-End-

-CITE-
    46 USC APPENDIX Sec. 128                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 4 - TONNAGE DUTIES

-HEAD-
    Sec. 128. Light money

-STATUTE-
      A duty of 50 cents per ton, to be denominated "light money",
    shall be levied and collected on all vessels not of the United
    States which may enter the ports of the United States. Such light
    money shall be levied and collected in the same manner and under
    the same regulations as the tonnage duties: Provided, That no such
    duty shall be required where a vessel owned by citizens of the
    United States, but not a vessel of the United States, after
    entering an American port, shall, before leaving the same, be
    registered as a vessel of the United States.

-SOURCE-
    (R.S. Sec. 4225; Mar. 4, 1915, ch. 171, Sec. 1, 38 Stat. 1193.)

-COD-
                               CODIFICATION                           
      R.S. Sec. 4225 derived from act Mar. 27, 1804, ch. 57, Sec. 6, 2
    Stat. 300.
      The proviso of this section is from act Mar. 4, 1915. Other
    provisions of the act are classified to section 121 of this
    Appendix and sections 128 and 131 of Title 19, Customs Duties.

-End-

-CITE-
    46 USC APPENDIX Sec. 129                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 4 - TONNAGE DUTIES

-HEAD-
    Sec. 129. Exemption of unregistered vessels owned by citizens

-STATUTE-
      Section 128 of this Appendix shall not be deemed to operate upon
    unregistered vessels, owned by citizens of the United States, and
    carrying regular documents, issued from a customhouse of the United
    States, proving the vessel to be American property. Upon the entry
    of every such vessel from any foreign port, if the same shall be at
    the port at which the owner or any of the part owners reside, such
    owner or part owners shall make oath that the document possessed by
    such vessel contains the name or names of all the persons who are
    then the owners of the vessel; or if any part of such vessel has
    been sold or transferred since the date of such document, that such
    is the case, and that no foreign subject or citizen has, to the
    best of his knowledge and belief, any share, by way of trust,
    confidence, or otherwise, in such vessel. If the owner or any part
    owner does not reside at the port or place at which such vessel
    shall enter, then the master shall make oath to the like effect. If
    the owner or part owner, where there is one, or the master, where
    there is no owner, shall refuse to so swear, such vessel shall not
    be entitled to the privileges granted by this section.

-SOURCE-
    (R.S. Sec. 4226.)

-COD-
                               CODIFICATION                           
      R.S. Sec. 4226 derived from act Mar. 3, 1805, ch. 40, 2 Stat.
    339.
      As originally enacted, this section contained a reference to
    vessels carrying sea letters. The use of such documents was
    discontinued by Presidential proclamation on Apr. 10, 1815.

-End-

-CITE-
    46 USC APPENDIX Sec. 132                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 4 - TONNAGE DUTIES

-HEAD-
    Sec. 132. Vessels not entering by sea

-STATUTE-
      Vessels entering otherwise than by sea from a foreign port at
    which tonnage or lighthouse dues or other equivalent tax or taxes
    are not imposed on vessels of the United States shall be exempt
    from the tonnage duty of 9 cents per ton, not to exceed in the
    aggregate 45 cents per ton in any one year, for fiscal years 1991
    through 2002, and 2 cents per ton, not to exceed in the aggregate
    10 cents per ton in any one year, for each fiscal year thereafter,
    prescribed by section 121 of this Appendix.

-SOURCE-
    (Mar. 8, 1910, ch. 86, 36 Stat. 234; Pub. L. 101-508, title X, Sec.
    10402(b), Nov. 5, 1990, 104 Stat. 1388-399; Pub. L. 103-66, title
    IX, Sec. 9001(b), Aug. 10, 1993, 107 Stat. 402; Pub. L. 105-33,
    title IX, Sec. 9201(b), Aug. 5, 1997, 111 Stat. 671.)

-MISC1-
                                AMENDMENTS                            
      1997 - Pub. L. 105-33 which directed substitution of "for fiscal
    years 1991 through 2002," for "for fiscal years 1991, 1992, 1993,
    1994, 1995, 1996, 1997, 1998,", was executed by making the
    substitution for "for fiscal years 1991, 1992, 1993, 1994, 1995,
    1996, 1997, and 1998," to reflect the probable intent of Congress.
      1993 - Pub. L. 103-66 substituted "1995, 1996, 1997, and 1998,"
    for "and 1995,".
      1990 - Pub. L. 101-508 substituted "9 cents per ton, not to
    exceed in the aggregate 45 cents per ton in any one year, for
    fiscal years 1991, 1992, 1993, 1994, and 1995, and 2 cents per ton,
    not to exceed in the aggregate 10 cents per ton in any one year,
    for each fiscal year thereafter" for "two cents per ton, not to
    exceed in the aggregate ten cents per ton in any one year".

-End-

-CITE-
    46 USC APPENDIX Sec. 133                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 4 - TONNAGE DUTIES

-HEAD-
    Sec. 133. Hospital ships in time of war

-STATUTE-
      Hospital ships, concerning which the conditions set forth in
    articles 1, 2, and 3 of the convention concluded at The Hague on
    July 29, 1899, for the adaptation to maritime warfare of the
    principles of the Geneva convention of August 22, 1864, are
    fulfilled, shall, in the ports of the United States and the
    possessions thereof, be exempted, in time of war, from all dues and
    taxes imposed on vessels by the laws of the United States, and from
    all pilotage charges.

-SOURCE-
    (Mar. 24, 1908, ch. 96, Sec. 1, 35 Stat. 46.)

-End-

-CITE-
    46 USC APPENDIX Sec. 134                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 4 - TONNAGE DUTIES

-HEAD-
    Sec. 134. Designation by President of hospital ships exempted

-STATUTE-
      The President of the United States shall by proclamation name the
    hospital ships to which section 133 of this Appendix shall apply,
    and shall indicate the time when the exemptions provided for shall
    begin and end.

-SOURCE-
    (Mar. 24, 1908, ch. 96, Sec. 2, 35 Stat. 46.)

-TRANS-
                          DELEGATION OF FUNCTIONS                      
      For delegation to Secretary of the Treasury of authority vested
    in President by this section, see section 1(e) of Ex. Ord. No.
    10289, eff. Sept. 17, 1951, 16 F.R. 9499, set out as a note under
    section 301 of Title 3, The President.

-End-

-CITE-
    46 USC APPENDIX Sec. 135                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 4 - TONNAGE DUTIES

-HEAD-
    Sec. 135. Rights under treaties preserved

-STATUTE-
      Nothing contained in title 48 of the Revised Statutes shall be
    deemed in anywise to impair any rights and privileges which have
    been or may be acquired by any foreign nation under the laws and
    treaties of the United States relative to the duty on tonnage of
    vessels, or any other duty on vessels.

-SOURCE-
    (R.S. Sec. 4227.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Title 48 of the Revised Statutes, referred to in text, was in the
    original "this Title", meaning title 48 of the Revised Statutes,
    consisting of R.S. Secs. 4131 to 4305. For complete classification
    of R.S. Secs. 4131 to 4305 to the Code, see Tables.

-COD-
                               CODIFICATION                           
      R.S. Sec. 4227 derived from acts Apr. 27, 1816, ch. 107, Sec. 6,
    3 Stat. 314; Jan. 14, 1817, ch. 3, Sec. 1, 3 Stat. 344; July 14,
    1862, ch. 163, Sec. 15, 12 Stat. 558.

-End-

-CITE-
    46 USC APPENDIX CHAPTER 5 - DISCRIMINATING
           DUTIES AND RECIPROCAL PRIVILEGES                01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 5 - DISCRIMINATING DUTIES AND RECIPROCAL PRIVILEGES

-HEAD-
        CHAPTER 5 - DISCRIMINATING DUTIES AND RECIPROCAL PRIVILEGES    

-MISC1-
    Sec.                                                     
    141.        Suspension by President.                              
    142.        Retaliatory suspension of commercial privileges to
                 foreign vessels.                                     
    143.        Retaliation on denial of rights to United States
                 vessels in British North America.                    
    144.        Suspension of free passage through Saint Marys Falls
                 Canal; tolls.                                        
    145.        Collection of tolls.                                  
    146.        Discriminating duty on merchandise imported in foreign
                 vessels; exception.                                  

-End-

-CITE-
    46 USC APPENDIX Sec. 141                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 5 - DISCRIMINATING DUTIES AND RECIPROCAL PRIVILEGES

-HEAD-
    Sec. 141. Suspension by President

-STATUTE-
      Upon satisfactory proof being given to the President, by the
    government of any foreign nation, that no discriminating duties of
    tonnage or imposts are imposed or levied in the ports of such
    nation upon vessels wholly belonging to citizens of the United
    States, or upon the produce, manufactures, or merchandise imported
    in the same from the United States or from any foreign country, the
    President may issue his proclamation, declaring that the foreign
    discriminating duties of tonnage and impost within the United
    States are suspended and discontinued, so far as respects the
    vessels of such foreign nation, and the produce, manufactures, or
    merchandise imported into the United States from such foreign
    nation, or from any other foreign country; the suspension to take
    effect from the time of such notification being given to the
    President, and to continue so long as the reciprocal exemption of
    vessels, belonging to citizens of the United States, and their
    cargoes, shall be continued, and no longer: Provided, That the
    President is authorized to suspend in part the operation of section
    121 of this Appendix and section 2502 of the Revised Statutes so
    that foreign vessels from a country imposing partial discriminating
    tonnage duties upon American vessels, or partial discriminating
    import duties upon American merchandise, may enjoy in our ports the
    identical privileges which the same class of American vessels and
    merchandise may enjoy in said foreign country.

-SOURCE-
    (R.S. Sec. 4228; July 24, 1897, ch. 13, 30 Stat. 214.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 2502 of the Revised Statutes, referred to in text, which
    imposed a discriminating duty upon merchandise imported in foreign
    vessels, was not classified to the Code and was repealed by act
    Mar. 3, 1933, ch. 202, Sec. 1, 47 Stat. 1430. See section 146 of
    this Appendix.

-COD-
                               CODIFICATION                           
      R.S. Sec. 4228 derived from acts May 24, 1828, ch. 111, Sec. 1, 4
    Stat. 308; May 31, 1830, ch. 219, Sec. 2, 4 Stat. 425; July 13,
    1832, ch. 207, Sec. 3, 4 Stat. 579.
      Act July 24, 1897, added proviso.

-TRANS-
                          DELEGATION OF FUNCTIONS                      
      For delegation to Secretary of the Treasury of authority vested
    in President by this section, see section 1(f) of Ex. Ord. No.
    10289, eff. Sept. 17, 1951, 16 F.R. 9499, set out as a note under
    section 301 of Title 3, The President.

-MISC1-
                    NATIONS WHOSE VESSELS ARE EXEMPTED                
      Nations whose vessels are exempted by treaties or Presidential
    proclamations from the payment of any higher tonnage duties than
    are applicable to vessels of the United States, and are exempted
    from the payment of light money, see 19 C.F.R. Sec. 4.22.

-EXEC-
                           PROC. NO. 2992. KOREA                       
      Proc. No. 2992, Oct. 13, 1952, 17 F.R. 9150, 67 Stat. c15,
    provided:
      NOW, THEREFORE, I, HARRY S. TRUMAN, President of the United
    States of America, by virtue of the authority vested in me by the
    above-quoted statutory provisions [this section] do hereby declare
    and proclaim that the foreign discriminating duties of tonnage and
    imposts within the United States are suspended and discontinued so
    far as respects the vessels of Korea and the produce, manufactures,
    or merchandise imported in said vessels into the United States from
    Korea or from any other foreign country; the suspension to take
    effect from October 1, 1952, and to continue so long as the
    reciprocal exemption of vessels belonging to citizens of the United
    States and their cargoes shall be continued, and no longer.

-End-

-CITE-
    46 USC APPENDIX Sec. 142                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 5 - DISCRIMINATING DUTIES AND RECIPROCAL PRIVILEGES

-HEAD-
    Sec. 142. Retaliatory suspension of commercial privileges to
      foreign vessels

-STATUTE-
      Whenever any foreign country whose vessels have been placed on
    the same footing in the ports of the United States as American
    vessels (the coastwise trade excepted) shall deny to any vessels of
    the United States any of the commercial privileges accorded to
    national vessels in the harbors, ports, or waters of such foreign
    country, the President, on receiving satisfactory information of
    the continuance of such discriminations against any vessels of the
    United States, is authorized to issue his proclamation excluding,
    on and after such time as he may indicate, from the exercise of
    such commercial privileges in the ports of the United States as are
    denied to American vessels in the ports of such foreign country,
    all vessels of such foreign country of a similar character to the
    vessels of the United States thus discriminated against, and
    suspending such concessions previously granted to the vessels of
    such country; and on and after the date named in such proclamation
    for it to take effect, if the master, officer, or agent of any
    vessel of such foreign country excluded by said proclamation from
    the exercise of any commercial privileges shall do any act
    prohibited by said proclamation in the ports, harbors, or waters of
    the United States for or on account of such vessel, such vessel,
    and its rigging, tackle, furniture, and boats, and all the goods on
    board, shall be liable to seizure and to forfeiture to the United
    States; and any person opposing any officer of the United States in
    the enforcement of this section, or aiding and abetting any other
    person in such opposition, shall forfeit $800, and shall be guilty
    of a misdemeanor, and, upon conviction, shall be liable to
    imprisonment for a term not exceeding two years.

-SOURCE-
    (June 19, 1886, ch. 421, Sec. 17, 24 Stat. 82.)

-End-

-CITE-
    46 USC APPENDIX Sec. 143                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 5 - DISCRIMINATING DUTIES AND RECIPROCAL PRIVILEGES

-HEAD-
    Sec. 143. Retaliation on denial of rights to United States vessels
      in British North America

-STATUTE-
      Whenever the President of the United States shall be satisfied
    that American fishing vessels or American fishermen, visiting or
    being in the waters or at any ports or places of the British
    dominions of North America, are or then lately have been denied or
    abridged in the enjoyment of any rights secured to them by treaty
    or law, or are or then lately have been unjustly vexed or harassed
    in the enjoyment of such rights, or subjected to unreasonable
    restrictions, regulations, or requirements in respect of such
    rights; or otherwise unjustly vexed or harassed in said waters,
    ports, or places; or whenever the President of the United States
    shall be satisfied that any such fishing vessels or fishermen,
    having a permit under the laws of the United States to touch and
    trade at any port or ports, place or places, in the British
    dominions of North America, are or then lately have been denied the
    privilege of entering such port or ports, place or places in the
    same manner and under the same regulations as may exist therein
    applicable to trading vessels of the most favored nation, or shall
    be unjustly vexed or harassed, in respect thereof, or otherwise be
    unjustly vexed or harassed therein, or shall be prevented from
    purchasing such supplies as may there be lawfully sold to trading
    vessels of the most favored nation; or whenever the President of
    the United States shall be satisfied that any other vessels of the
    United States, their masters, or crews, so arriving at or being in
    such British waters or ports or places of the British dominions of
    North America, are or then lately have been denied any of the
    privileges therein accorded to the vessels, their masters, or
    crews, of the most favored nation, or unjustly vexed or harassed in
    respect of the same, or unjustly vexed or harassed therein by the
    authorities thereof, then, and in either or all of such cases, it
    shall be lawful, and it shall be the duty of the President of the
    United States, in his discretion, by proclamation to that effect,
    to deny vessels, their masters and crews, of the British dominions
    of North America, any entrance into the waters, ports, or places of
    or within the United States (with such exceptions in regard to
    vessels in distress, stress of weather, or needing supplies as to
    the President shall seem proper), whether such vessel shall have
    come directly from said dominions on such destined voyage or by way
    of some port or place in such destined voyage elsewhere; and also
    to deny entry into any port or place of the United States of fresh
    fish or salt fish or any other product of said dominions, or other
    goods coming from said dominions to the United States. The
    President may, in his discretion, apply such proclamation to any
    part or to all of the foregoing named subjects, and may revoke,
    qualify, limit, and renew such proclamation from time to time as he
    may deem necessary to the full and just execution of the purposes
    of this section. Every violation of any such proclamation, or any
    part thereof, is declared illegal, and all vessels and goods so
    coming or being within the waters, ports, or places of the United
    States contrary to such proclamation shall be forfeited to the
    United States; and such forfeiture shall be enforced and proceeded
    upon in the same manner and with the same effect as in the case of
    vessels or goods whose importation or coming to or being in the
    waters or ports of the United States contrary to law may be
    enforced and proceeded upon. Every person who shall violate any of
    the provisions of this section, or such proclamation of the
    President made in pursuance hereof, shall be deemed guilty of a
    misdemeanor, and, on conviction thereof, shall be punished by a
    fine not exceeding $1,000, or by imprisonment for a term not
    exceeding two years, or by both said punishments, in the discretion
    of the court.

-SOURCE-
    (Mar. 3, 1887, ch. 339, 24 Stat. 475.)

-End-

-CITE-
    46 USC APPENDIX Sec. 144                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 5 - DISCRIMINATING DUTIES AND RECIPROCAL PRIVILEGES

-HEAD-
    Sec. 144. Suspension of free passage through Saint Marys Falls
      Canal; tolls

-STATUTE-
      With a view of securing reciprocal advantages for the citizens,
    ports, and vessels of the United States, whenever and so often as
    the President shall be satisfied that the passage through any canal
    or lock connected with the navigation of the Saint Lawrence River,
    the Great Lakes, or the water ways connecting the same, of any
    vessels of the United States, or of cargoes or passengers in
    transit to any port of the United States, is prohibited or is made
    difficult or burdensome by the imposition of tolls or otherwise
    which, in view of the free passage through the Saint Marys Falls
    Canal, permitted to vessels of all nations, he shall deem to be
    reciprocally unjust and unreasonable, he shall have the power, and
    it shall be his duty, to suspend by proclamation to that effect,
    for such time and to such extent (including absolute prohibition)
    as he shall deem just, the right of free passage through the Saint
    Marys Falls Canal, so far as it relates to vessels owned by the
    subjects of the Government so discriminating against the citizens,
    ports, or vessels of the United States, or to any cargoes, portions
    of cargoes, or passengers in transit to the ports of the Government
    making such discrimination, whether carried in vessels of the
    United States or of other nations.
      In such case and during such suspension tolls shall be levied,
    collected, and paid as follows, to wit: Upon freight of whatever
    kind or description, not to exceed $2 per ton; upon passengers, not
    to exceed $5 each, as shall be from time to time determined by the
    President: Provided, That no tolls shall be charged or collected
    upon freight or passengers carried to and landed at Ogdensburg, or
    any port west of Ogdensburg, and south of a line drawn from the
    northern boundary of the State of New York through the Saint
    Lawrence River, the Great Lakes, and their connecting channels to
    the northern boundary of the State of Minnesota.

-SOURCE-
    (July 26, 1892, ch. 248, Sec. 1, 27 Stat. 267.)

-End-

-CITE-
    46 USC APPENDIX Sec. 145                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 5 - DISCRIMINATING DUTIES AND RECIPROCAL PRIVILEGES

-HEAD-
    Sec. 145. Collection of tolls

-STATUTE-
      All tolls charged under the provisions of section 144 of this
    Appendix shall be collected under such regulations as shall be
    prescribed by the Commissioner of Customs, who may require the
    master of each vessel to furnish a sworn statement of the amount
    and kind of cargo and the number of passengers carried and the
    destination of the same, and such proof of the actual delivery of
    such cargo or passengers at some port or place within the limits
    above named as he shall deem satisfactory; and until such proof is
    furnished such freight and passengers may be considered to have
    been landed at some port or place outside of those limits, and the
    amount of tolls which would have accrued if they had been so
    delivered shall constitute a lien which may be enforced against the
    vessel in default wherever and whenever found in the waters of the
    United States.

-SOURCE-
    (July 26, 1892, ch. 248, Sec. 2, 27 Stat. 268; Feb. 14, 1903, ch.
    552, Sec. 10, 32 Stat. 829; Mar. 4, 1913, ch. 141, Sec. 1, 37 Stat.
    736; 1946 Reorg. Plan No. 3, Secs. 101-104, eff. July 16, 1946, 11
    F.R. 7875, 60 Stat. 1097.)

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      For transfer of functions, personnel, assets, and liabilities of
    the United States Customs Service of the Department of the
    Treasury, including functions of the Secretary of the Treasury
    relating thereto, to the Secretary of Homeland Security, and for
    treatment of related references, see sections 203(1), 551(d),
    552(d), and 557 of Title 6, Domestic Security, and the Department
    of Homeland Security Reorganization Plan of November 25, 2002, as
    modified, set out as a note under section 542 of Title 6.
      For transfer of functions of other officers, employees, and
    agencies of Department of the Treasury, with certain exceptions, to
    Secretary of the Treasury with power to delegate, see Reorg. Plan
    No. 26 of 1950, Secs. 1, 2, eff. July 31, 1950, 15 F.R. 4935, 64
    Stat. 1280, 1281, set out in the Appendix to Title 5, Government
    Organization and Employees. Commissioner of Customs, referred to in
    text, was an officer of Department of the Treasury.
      "Commissioner of Customs" substituted in text for "Secretary of
    Commerce" on authority of Reorg. Plan No. 3 of 1946, Secs. 101-104,
    set out as a note preceding section 3 of this Appendix.
      Upon incorporation into the Code, "Secretary of Commerce"
    substituted for "Secretary of the Treasury" to conform to act Feb.
    14, 1903, which transferred certain powers and duties of Secretary
    of the Treasury relating to merchant vessels and yachts to
    Secretary of Commerce and Labor and act Mar. 4, 1913, which changed
    designation of Secretary of Commerce and Labor to Secretary of
    Commerce.

    ADMINISTRATIVE DELEGATION OF FUNCTIONS BY SECRETARY OF THE TREASURY
      Administrative delegation of functions by Secretary of the
    Treasury, see note set out preceding section 3 of this Appendix.

-End-

-CITE-
    46 USC APPENDIX Sec. 146                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 5 - DISCRIMINATING DUTIES AND RECIPROCAL PRIVILEGES

-HEAD-
    Sec. 146. Discriminating duty on merchandise imported in foreign
      vessels; exception

-STATUTE-
      A discriminating duty of 10 per centum ad valorem, in addition to
    the duties imposed by law, shall be levied, collected, and paid on
    all goods, wares, or merchandise which shall be imported in vessels
    not of the United States; but this discriminating duty shall not
    apply to goods, wares, or merchandise which shall be imported in
    vessels not of the United States entitled at the time of such
    importation by treaty or any act of Congress to be entered in the
    ports of the United States on payment of the same duties as shall
    then be payable on goods, wares, and merchandise imported in
    vessels of the United States, nor to goods, wares, and merchandise
    imported in a vessel owned by citizens of the United States but not
    a vessel of the United States if such vessel after entering an
    American port shall, before leaving the same, be documented under
    chapter 121 of title 46.

-SOURCE-
    (Oct. 3, 1913, ch. 16, Sec. IV, J, subsec. 1, 38 Stat. 195; Mar. 4,
    1915, ch. 171, Sec. 1, 38 Stat. 1193; June 17, 1930, ch. 497, title
    IV, Sec. 651(d)(1), 46 Stat. 763; Pub. L. 103-182, title VI, Sec.
    689(a)(1), Dec. 8, 1993, 107 Stat. 2222.)

-COD-
                               CODIFICATION                           
      The provisions incorporated in this section, with portions of the
    original text omitted here, are classified to section 128 of Title
    19, Customs Duties.
      Section is a composite of acts Oct. 3, 1913, ch. 16, and Mar. 4,
    1915, ch. 171, as amended. The words "nor to goods, wares, and
    merchandise imported in a vessel owned by citizens of the United
    States but not a vessel of the United States if such vessel after
    entering an American port shall, before leaving the same, be
    documented under chapter 121 of title 46" are based on the
    nonspecific amendment of act Oct. 3, 1913, by act Mar. 4, 1915, as
    amended.
      Subsec. 1 of act Oct. 3, 1913, Sec. IV, par. J, provided also for
    a discriminating duty on goods, wares and merchandise produced or
    manufactured in a foreign country not contiguous to the United
    States but coming into the United States from such contiguous
    country. That provision is classified to section 128 of Title 19.
      R.S. Sec. 2502 imposed a discriminating duty upon merchandise
    imported in foreign vessels. It was superseded by subsequent
    similar provisions in successive tariff acts, the latest of which
    is classified to this section.
      Act June 5, 1920, ch. 250, Sec. 34, 41 Stat. 1007, declaring it
    to be the judgment of Congress that provisions of treaties
    restricting the right of the United States to impose discriminating
    customs duties on imports entering the United States in foreign
    vessels and vessels of the United States, and discriminatory
    tonnage dues on foreign vessels, and on vessels of the United
    States, should be terminated, and directing the President to give
    notice to terminate them, was omitted.

-MISC1-
                                AMENDMENTS                            
      1993 - Pub. L. 103-182, which directed the amendment of act Oct.
    3, 1913, by substituting "documented under chapter 121 of title
    46," for "registered as a vessel of the United States,", was
    executed by making the substitution in that part of this section
    comprised of provisions of act Mar. 4, 1915. See Codification note
    above.

                      AMENDMENT OR REPEAL; EXCEPTION                  
      Section is expressly excepted from repeal or amendment by the
    Tariff Act of 1930 (act June 17, 1930, ch. 497, title IV, 46 Stat.
    763) by section 651(d) of that act which is classified to section
    1651(d) of Title 19, Customs Duties.

-End-

-CITE-
    46 USC APPENDIX CHAPTER 6 - REGULATION AS TO
           VESSELS CARRYING STEERAGE PASSENGERS            01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 6 - REGULATION AS TO VESSELS CARRYING STEERAGE PASSENGERS

-HEAD-
     CHAPTER 6 - REGULATION AS TO VESSELS CARRYING STEERAGE PASSENGERS 

-MISC1-
    Sec.                                                     
    163.        Regulations as to boarding arriving vessels before
                 inspection.                                          

-End-

-CITE-
    46 USC APPENDIX Sec. 163                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 6 - REGULATION AS TO VESSELS CARRYING STEERAGE PASSENGERS

-HEAD-
    Sec. 163. Regulations as to boarding arriving vessels before
      inspection

-STATUTE-
      The Commissioner of Customs is authorized and directed to
    prescribe from time to time and enforce regulations governing the
    boarding of vessels arriving at the seaports of the United States,
    before such vessels have been properly inspected and placed in
    security, and for that purpose to employ any of the officers of the
    United States Customs Service. Each person violating such
    regulations shall be subject to a penalty of not more than $100 or
    imprisonment not to exceed six months, or both, in the discretion
    of the court. This section shall be construed as supplementary to
    section 9 of act August 2, 1882 (22 Stat. 189), and section 2279 of
    title 18.

-SOURCE-
    (Mar. 31, 1900, ch. 120, Secs. 1-3, 31 Stat. 58; Feb. 14, 1903, ch.
    552, Sec. 10, 32 Stat. 829; Mar. 4, 1913, ch. 141, Sec. 1, 37 Stat.
    736; 1946 Reorg. Plan No. 3, Sec. 101, eff. July 16, 1946, 11 F.R.
    7875, 60 Stat. 1097.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 9 of act August 2, 1882, referred to in text, was
    classified to section 158 of former Title 46, Shipping, and was
    repealed by Pub. L. 98-89, Sec. 4(b), Aug. 26, 1983, 97 Stat. 600.

-COD-
                               CODIFICATION                           
      "Section 2279 of title 18" substituted in text for "section 4606
    of the Revised Statutes" on authority of act June 25, 1948, ch.
    645, 62 Stat. 683, which enacted Title 18, Crimes and Criminal
    Procedure.

-MISC1-
                              EFFECTIVE DATE                          
      Section 4 of act Mar. 31, 1900, provided: "That this Act
    [enacting this section] shall take effect thirty days after its
    passage."

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      For transfer of functions, personnel, assets, and liabilities of
    the United States Customs Service of the Department of the
    Treasury, including functions of the Secretary of the Treasury
    relating thereto, to the Secretary of Homeland Security, and for
    treatment of related references, see sections 203(1), 551(d),
    552(d), and 557 of Title 6, Domestic Security, and the Department
    of Homeland Security Reorganization Plan of November 25, 2002, as
    modified, set out as a note under section 542 of Title 6.
      "United States Customs Service" substituted in text for "Bureau
    of Customs" pursuant to Treasury Department Order 165-23, Apr. 4,
    1973, eff. Aug. 1, 1973, 38 F.R. 13037. See, also, section 308 of
    Title 31, Money and Finance.
      For transfer of functions of other officers, employees, and
    agencies of Department of the Treasury, with certain exceptions, to
    Secretary of the Treasury with power to delegate, see Reorg. Plan
    No. 26 of 1950, Secs. 1, 2, eff. July 31, 1950, 15 F.R. 4935, 64
    Stat. 1280, 1281, set out in the Appendix to Title 5, Government
    Organization and Employees. Commissioner of Customs, referred to in
    text, was an officer of Department of the Treasury.
      "Commissioner of Customs" substituted in text for "Secretary of
    Commerce" and "the Bureau of Customs" for "that department" on
    authority of sections 101 to 104 of Reorg. Plan No. 3 of 1946, set
    out as a note preceding section 3 of this Appendix.
      Upon incorporation into the Code, "Secretary of Commerce"
    substituted for "Secretary of the Treasury," to conform to act Feb.
    14, 1903, which transferred certain powers and duties of Secretary
    of the Treasury relating to merchant vessels and yachts to
    Secretary of Commerce and Labor and act Mar. 4, 1913, which changed
    designation of Secretary of Commerce and Labor to Secretary of
    Commerce.

    ADMINISTRATIVE DELEGATION OF FUNCTIONS BY SECRETARY OF THE TREASURY
      Administrative delegation of functions by Secretary of the
    Treasury, see note set out preceding section 3 of this Appendix.

-End-

-CITE-
    46 USC APPENDIX CHAPTER 8 - LIMITATION OF VESSEL
           OWNER'S LIABILITY                               01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 8 - LIMITATION OF VESSEL OWNER'S LIABILITY

-HEAD-
            CHAPTER 8 - LIMITATION OF VESSEL OWNER'S LIABILITY        

-MISC1-
    Sec.                                                     
    181.        Liability of masters as carriers.                     
    182.        Loss by fire.                                         
    183.        Amount of liability.                                  
                  (a)  Privity or knowledge of owner; limitation.     
                  (b)  Seagoing vessels; losses not covered in full.  
                  (c)  Tonnage of seagoing vessels.                   
                  (d)  Loss of life or bodily injury arising on
                        distinct occasions.                           
                  (e)  Privity imputed to owner.                      
                  (f)  "Seagoing vessel" defined.                     
                  (g)  Vicarious liability for medical malpractice at
                        shoreside facilities; statutory limitations.  
    183b.       Stipulations limiting time for filing claims and
                 commencing suit.                                     
                  (a)  Time periods.                                  
                  (b)  Claims not barred for failure to give notice.  
                  (c)  Mental incompetents; minors; wrongful death
                        actions.                                      
    183c.       Stipulations limiting liability for negligence
                 invalid; contract limitations allowed.               
    184.        Apportionment of compensation.                        
    185.        Petition for limitation of liability; deposit of value
                 of interest in court; transfer of interest to
                 trustee.                                             
    186.        Charterer may be deemed owner.                        
    187.        Remedies reserved.                                    
    188.        Limitation of liability of owners applied to all
                 vessels.                                             
    189.        Limitation of liability of owners of vessels for
                 debts.                                               
    190.        Stipulations relieving from liability for negligence. 
    191.        Stipulations relieving from exercise of due diligence
                 in equipping vessels.                                
    192.        Limitation of liability for errors of navigation,
                 dangers of sea and acts of God.                      
    193.        Bills of lading to be issued; contents.               
    194.        Penalties; liens; recovery.                           
    195.        Certain provisions inapplicable to transportation of
                 live animals.                                        
    196.        Certain laws unaffected.                              

-End-

-CITE-
    46 USC APPENDIX Sec. 181                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 8 - LIMITATION OF VESSEL OWNER'S LIABILITY

-HEAD-
    Sec. 181. Liability of masters as carriers

-STATUTE-
      If any shipper of platina, gold, gold dust, silver, bullion, or
    other precious metals, coins, jewelry, bills of any bank or public
    body, diamonds, or other precious stones, or any gold or silver in
    a manufactured or unmanufactured state, watches, clocks, or
    timepieces of any description, trinkets, orders, notes, or
    securities for payment of money, stamps, maps, writings, title
    deeds, printings, engravings, pictures, gold or silver plate or
    plated articles, glass, china, silks in a manufactured or
    unmanufactured state, and whether wrought up or not wrought up with
    any other material, furs, or lace, or any of them, contained in any
    parcel, or package, or trunk, shall lade the same as freight or
    baggage, on any vessel, without at the time of such lading giving
    to the master, clerk, agent, or owner of such vessel receiving the
    same a written notice of the true character and value thereof, and
    having the same entered on the bill of lading therefor, the master
    and owner of such vessel shall not be liable as carriers thereof in
    any form or manner; nor shall any such master or owner be liable
    for any such goods beyond the value and according to the character
    thereof so notified and entered.

-SOURCE-
    (R.S. Sec. 4281.)

-COD-
                               CODIFICATION                           
      R.S. Sec. 4281 derived from act Feb. 28, 1871, ch. 100, Sec. 69,
    16 Stat. 458.

-MISC1-
                                SHORT TITLE                            
      Sections 190 to 196 of this Appendix are popularly known as the
    "Harter Act".

-End-

-CITE-
    46 USC APPENDIX Sec. 182                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 8 - LIMITATION OF VESSEL OWNER'S LIABILITY

-HEAD-
    Sec. 182. Loss by fire

-STATUTE-
      No owner of any vessel shall be liable to answer for or make good
    to any person any loss or damage, which may happen to any
    merchandise whatsoever, which shall be shipped, taken in, or put on
    board any such vessel, by reason or by means of any fire happening
    to or on board the vessel, unless such fire is caused by the design
    or neglect of such owner.

-SOURCE-
    (R.S. Sec. 4282.)

-COD-
                               CODIFICATION                           
      R.S. Sec. 4282 derived from act Mar. 3, 1851, ch. 43, Sec. 1, 9
    Stat. 635.

-End-

-CITE-
    46 USC APPENDIX Sec. 183                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 8 - LIMITATION OF VESSEL OWNER'S LIABILITY

-HEAD-
    Sec. 183. Amount of liability

-STATUTE-
    (a) Privity or knowledge of owner; limitation
      The liability of the owner of any vessel, whether American or
    foreign, for any embezzlement, loss, or destruction by any person
    of any property, goods, or merchandise shipped or put on board of
    such vessel, or for any loss, damage, or injury by collision, or
    for any act, matter, or thing, loss, damage, or forfeiture, done,
    occasioned, or incurred, without the privity or knowledge of such
    owner or owners, shall not, except in the cases provided for in
    subsection (b) of this section, exceed the amount or value of the
    interest of such owner in such vessel, and her freight then
    pending.
    (b) Seagoing vessels; losses not covered in full
      In the case of any seagoing vessel, if the amount of the owner's
    liability as limited under subsection (a) of this section is
    insufficient to pay all losses in full, and the portion of such
    amount applicable to the payment of losses in respect of loss of
    life or bodily injury is less than $420 per ton of such vessel's
    tonnage, such portion shall be increased to an amount equal to $420
    per ton, to be available only for the payment of losses in respect
    of loss of life or bodily injury. If such portion so increased is
    insufficient to pay such losses in full, they shall be paid
    therefrom in proportion to their respective amounts.
    (c) Tonnage of seagoing vessels
      For the purposes of this section the tonnage of a seagoing steam
    or motor vessel shall be her gross tonnage without deduction on
    account of engine room, and the tonnage of a seagoing sailing
    vessel shall be her registered tonnage: Provided, That there shall
    not be included in such tonnage any space occupied by seamen or
    apprentices and appropriated to their use.
    (d) Loss of life or bodily injury arising on distinct occasions
      The owner of any such seagoing vessel shall be liable in respect
    of loss of life or bodily injury arising on distinct occasions to
    the same extent as if no other loss of life or bodily injury had
    arisen.
    (e) Privity imputed to owner
      In respect of loss of life or bodily injury the privity or
    knowledge of the master of a seagoing vessel or of the
    superintendent or managing agent of the owner thereof, at or prior
    to the commencement of each voyage, shall be deemed conclusively
    the privity or knowledge of the owner of such vessel.
    (f) "Seagoing vessel" defined
      As used in subsections (b), (c), (d), and (e) of this section and
    in section 183b of this Appendix, the term "seagoing vessel" shall
    not include pleasure yachts, tugs, towboats, towing vessels, tank
    vessels, fishing vessels or their tenders, self-propelled lighters,
    nondescript self-propelled vessels, canal boats, scows, car floats,
    barges, lighters, or nondescript non-self-propelled vessels, even
    though the same may be seagoing vessels within the meaning of such
    term as used in section 188 of this Appendix, as amended.
    (g) Vicarious liability for medical malpractice at shoreside
      facilities; statutory limitations
      In a suit by any person in which the operator or owner of a
    vessel or employer of a crewmember is claimed to have vicarious
    liability for medical malpractice with regard to a crewmember
    occurring at a shoreside facility, and to the extent the damages
    resulted from the conduct of any shoreside doctor, hospital,
    medical facility, or other health care provider, such operator,
    owner, or employer shall be entitled to rely upon any and all
    statutory limitations of liability applicable to the doctor,
    hospital, medical facility, or other health care provider in the
    State of the United States in which the shoreside medical care was
    provided.

-SOURCE-
    (R.S. Sec. 4283; Aug. 29, 1935, ch. 804, Sec. 1, 49 Stat. 960; June
    5, 1936, ch. 521, Sec. 1, 49 Stat. 1479; Pub. L. 98-498, title II,
    Sec. 213(a), Oct. 19, 1984, 98 Stat. 2306; Pub. L. 104-324, title
    XI, Sec. 1129(a), Oct. 19, 1996, 110 Stat. 3984.)

-COD-
                               CODIFICATION                           
      R.S. Sec. 4283 derived from act Mar. 3, 1851, ch. 43, Sec. 3, 9
    Stat. 635.

-MISC1-
                                AMENDMENTS                            
      1996 - Subsec. (g). Pub. L. 104-324 added subsec. (g).
      1984 - Subsec. (b). Pub. L. 98-498 substituted "$420" for "$60"
    in two places.
      1936 - Act June 5, 1936, amended section generally, provided,
    that when owner's limited liability is insufficient to pay losses
    in full and the portion applicable to payment for loss of life or
    injury is less than $60 per ton, such portion be increased to $60
    per ton, and if increased portion is insufficient, proportionate
    payments be made, inserted provision imputing privity or knowledge
    of master, superintendent, or managing agent to owner, construed
    "seagoing vessel" for purposes of section 183b of this Appendix as
    well as this section, and designated the amended provisions of
    section as subsecs. (a) to (f).
      1935 - Act Aug. 29, 1935, inserted provisions fixing total
    liability of owner of sea-going vessel, whether American or
    foreign, other than tugs, barges, or fishing vessels, for entire
    loss of life or injuries caused without his fault or privity at not
    less than $60 for each ton of such vessel or the amount of value of
    his interest in such vessel and her freight then pending, if the
    latter be a greater amount; fixed tonnage of steam or motor vessel
    as her gross tonnage, without deduction for engine room, and
    tonnage of a sailing vessel as her registered tonnage, not
    including space for seamen; and imposed on owners, liability for
    losses of life or injury on distinct occasions to the same extent
    as if no other loss or injury had arisen.

                     EFFECTIVE DATE OF 1984 AMENDMENT                 
      Section 213(b) of Pub. L. 98-498 provided that: "The amendment
    made by subsection (a) [amending this section] shall apply to
    incidents occurring after the date of enactment of this Act [Oct.
    19, 1984]."

-End-

-CITE-
    46 USC APPENDIX Sec. 183b                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 8 - LIMITATION OF VESSEL OWNER'S LIABILITY

-HEAD-
    Sec. 183b. Stipulations limiting time for filing claims and
      commencing suit

-STATUTE-
    (a) Time periods
      It shall be unlawful for the manager, agent, master, or owner of
    any sea-going vessel (other than tugs, barges, fishing vessels and
    their tenders) transporting passengers or merchandise or property
    from or between ports of the United States and foreign ports to
    provide by rule, contract, regulation, or otherwise a shorter
    period for giving notice of, or filing claims for loss of life or
    bodily injury, than six months, and for the institution of suits on
    such claims, than one year, such period for institution of suits to
    be computed from the day when the death or injury occurred.
    (b) Claims not barred for failure to give notice
      Failure to give such notice, where lawfully prescribed in such
    contract, shall not bar any such claim - 
        (1) If the owner or master of the vessel or his agent had
      knowledge of the injury, damage, or loss and the court determines
      that the owner has not been prejudiced by the failure to give
      such notice; nor
        (2) If the court excuses such failure on the ground that for
      some satisfactory reason such notice could not be given; nor
        (3) Unless objection to such failure is raised by the owner.
    (c) Mental incompetents; minors; wrongful death actions
      If a person who is entitled to recover on any such claim is
    mentally incompetent or a minor, or if the action is one for
    wrongful death, any lawful limitation of time prescribed in such
    contract shall not be applicable so long as no legal representative
    has been appointed for such incompetent, minor, or decedent's
    estate, but shall be applicable from the date of the appointment of
    such legal representative: Provided, however, That such appointment
    be made within three years after the date of such death or injury.

-SOURCE-
    (R.S. Sec. 4283A, as added Aug. 29, 1935, ch. 804, Sec. 3, 49 Stat.
    960.)

-End-

-CITE-
    46 USC APPENDIX Sec. 183c                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 8 - LIMITATION OF VESSEL OWNER'S LIABILITY

-HEAD-
    Sec. 183c. Stipulations limiting liability for negligence invalid;
      contract limitations allowed

-STATUTE-
      (a) It shall be unlawful for the manager, agent, master, or owner
    of any vessel transporting passengers between ports of the United
    States or between any such port and a foreign port to insert in any
    rule, regulation, contract, or agreement any provision or
    limitation (1) purporting, in the event of loss of life or bodily
    injury arising from the negligence or fault of such owner or his
    servants, to relieve such owner, master, or agent from liability,
    or from liability beyond any stipulated amount, for such loss or
    injury, or (2) purporting in such event to lessen, weaken, or avoid
    the right of any claimant to a trial by court of competent
    jurisdiction on the question of liability for such loss or injury,
    or the measure of damages therefor. All such provisions or
    limitations contained in any such rule, regulation, contract, or
    agreement are declared to be against public policy and shall be
    null and void and of no effect.
      (b)(1) Subsection (a) of this section shall not prohibit
    provisions or limitations in contracts, agreements, or ticket
    conditions of carriage with passengers which relieve a crewmember,
    manager, agent, master, owner, or operator of a vessel from
    liability for infliction of emotional distress, mental suffering,
    or psychological injury so long as such provisions or limitations
    do not limit such liability if the emotional distress, mental
    suffering, or psychological injury was - 
        (A) the result of physical injury to the claimant caused by the
      negligence or fault of a crewmember or the manager, agent,
      master, owner, or operator;
        (B) the result of the claimant having been at actual risk of
      physical injury, and such risk was caused by the negligence or
      fault of a crewmember or the manager, agent, master, owner, or
      operator; or
        (C) intentionally inflicted by a crewmember or the manager,
      agent, master, owner, or operator.

      (2) Nothing in this subsection is intended to limit the liability
    of a crewmember or the manager, agent, master, owner, or operator
    of a vessel in a case involving sexual harassment, sexual assault,
    or rape.

-SOURCE-
    (R.S. Sec. 4283B, as added June 5, 1936, ch. 521, Sec. 2, 49 Stat.
    1480; amended Pub. L. 102-587, title III, Sec. 3006, Nov. 4, 1992,
    106 Stat. 5068; Pub. L. 103-206, title III, Sec. 309, Dec. 20,
    1993, 107 Stat. 2425; Pub. L. 104-324, title XI, Sec. 1129(b), Oct.
    19, 1996, 110 Stat. 3984.)

-MISC1-
                                AMENDMENTS                            
      1996 - Pub. L. 104-324 designated existing provisions as subsec.
    (a) and added subsec. (b).
      1993 - Cl. (2). Pub. L. 103-206 substituted "court" for "any
    court".
      1992 - Cl. (2). Pub. L. 102-587 inserted "any" before "court".

-End-

-CITE-
    46 USC APPENDIX Sec. 184                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 8 - LIMITATION OF VESSEL OWNER'S LIABILITY

-HEAD-
    Sec. 184. Apportionment of compensation

-STATUTE-
      Whenever any such embezzlement, loss, or destruction is suffered
    by several freighters or owners of goods, wares, merchandise, or
    any property whatever, on the same voyage, and the whole value of
    the vessel, and her freight for the voyage, is not sufficient to
    make compensation to each of them, they shall receive compensation
    from the owner of the vessel in proportion to their respective
    losses; and for that purpose the freighters and owners of the
    property, and the owner of the vessel, or any of them, may take the
    appropriate proceedings in any court, for the purpose of
    apportioning the sum for which the owner of the vessel may be
    liable among the parties entitled thereto.

-SOURCE-
    (R.S. Sec. 4284; Feb. 27, 1877, ch. 69, Sec. 1, 19 Stat. 251.)

-COD-
                               CODIFICATION                           
      R.S. Sec. 4284 derived from act Mar. 3, 1851, ch. 43, Sec. 4, 9
    Stat. 635.
      Act Feb. 27, 1877, amended R.S. Sec. 4284 by substituting the
    word "owners" for "owner" in the expression "freighters and owners
    of the property".

-End-

-CITE-
    46 USC APPENDIX Sec. 185                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 8 - LIMITATION OF VESSEL OWNER'S LIABILITY

-HEAD-
    Sec. 185. Petition for limitation of liability; deposit of value of
      interest in court; transfer of interest to trustee

-STATUTE-
      The vessel owner, within six months after a claimant shall have
    given to or filed with such owner written notice of claim, may
    petition a district court of the United States of competent
    jurisdiction for limitation of liability within the provisions of
    chapter 6 of title 48 of the Revised Statutes and the owner (a)
    shall deposit with the court, for the benefit of claimants, a sum
    equal to the amount or value of the interest of such owner in the
    vessel and freight, or approved security therefor, and in addition
    such sums, or approved security therefor, as the court may from
    time to time fix as necessary to carry out the provisions of
    section 183 of this Appendix, or (b) at his option shall transfer,
    for the benefit of claimants, to a trustee to be appointed by the
    court his interest in the vessel and freight, together with such
    sums, or approved security therefor, as the court may from time to
    time fix as necessary to carry out the provisions of section 183 of
    this Appendix. Upon compliance with the requirements of this
    section all claims and proceedings against the owner with respect
    to the matter in question shall cease.

-SOURCE-
    (R.S. Sec. 4285; June 5, 1936, ch. 521, Sec. 3, 49 Stat. 1480.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Chapter 6 of title 48 of the Revised Statutes, referred to in
    text, was in the original "this chapter, as amended", meaning
    chapter 6 of title 48 of the Revised Statutes, consisting of R.S.
    Secs. 4252 to 4289. For complete classification of R.S. Secs. 4252
    to 4289 to the Code, see Tables.

-COD-
                               CODIFICATION                           
      R.S. Sec. 4285 derived from act Mar. 3, 1851, ch. 43, Sec. 4, 9
    Stat. 635.

-MISC1-
                                AMENDMENTS                            
      1936 - Act June 5, 1936, substituted provisions of this section
    for former provisions which provided that it should be deemed a
    sufficient compliance on the part of an owner with the requirements
    of title 48 of the Revised Statutes relating to his liability for
    embezzlement, loss, or destruction of any property, goods, or
    merchandise, if he transferred his interest in such vessel and
    freight, for the benefit of claimants, to a trustee appointed by
    court, after which all claims against the owner should cease.

-End-

-CITE-
    46 USC APPENDIX Sec. 186                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 8 - LIMITATION OF VESSEL OWNER'S LIABILITY

-HEAD-
    Sec. 186. Charterer may be deemed owner

-STATUTE-
      The charterer of any vessel, in case he shall man, victual, and
    navigate such vessel at his own expense, or by his own procurement,
    shall be deemed the owner of such vessel within the meaning of the
    provisions of title 48 of the Revised Statutes relating to the
    limitation of the liability of the owners of vessels; and such
    vessel, when so chartered, shall be liable in the same manner as if
    navigated by the owner thereof.

-SOURCE-
    (R.S. Sec. 4286.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Title 48 of the Revised Statutes, referred to in text, was in the
    original "this Title" meaning title 48 of the Revised Statutes,
    consisting of R.S. Secs. 4131 to 4305. For complete classification
    of R.S. Secs. 4131 to 4305 to the Code, see Tables.

-COD-
                               CODIFICATION                           
      R.S. Sec. 4286 derived from act Mar. 3, 1851, ch. 43, Sec. 5, 9
    Stat. 636.

-End-

-CITE-
    46 USC APPENDIX Sec. 187                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 8 - LIMITATION OF VESSEL OWNER'S LIABILITY

-HEAD-
    Sec. 187. Remedies reserved

-STATUTE-
      Nothing in sections 182, 183, and 184 to 186 of this Appendix
    shall be construed to take away or affect the remedy to which any
    party may be entitled, against the master, officers, or seamen, for
    or on account of any embezzlement, injury, loss, or destruction of
    merchandise, or property, put on board any vessel, or on account of
    any negligence, fraud, or other malversation of such master,
    officers, or seamen, respectively, nor to lessen or take away any
    responsibility to which any master or seaman of any vessel may by
    law be liable, notwithstanding such master or seaman may be an
    owner or part owner of the vessel.

-SOURCE-
    (R.S. Sec. 4287.)

-COD-
                               CODIFICATION                           
      R.S. Sec. 4287 derived from act Mar. 3, 1851, ch. 43, Sec. 6, 9
    Stat. 636.

-End-

-CITE-
    46 USC APPENDIX Sec. 188                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 8 - LIMITATION OF VESSEL OWNER'S LIABILITY

-HEAD-
    Sec. 188. Limitation of liability of owners applied to all vessels

-STATUTE-
      Except as otherwise specifically provided therein, the provisions
    of sections 175,(!1) 182, 183, 183b to 187, and 189 of this
    Appendix shall apply to all seagoing vessels, and also to all
    vessels used on lakes or rivers or in inland navigation, including
    canal boats, barges, and lighters.

-SOURCE-
    (R.S. Sec. 4289; Feb. 18, 1875, ch. 80, Sec. 1, 18 Stat. 320; June
    19, 1886, ch. 421, Sec. 4, 24 Stat. 80; June 5, 1936, ch. 521, Sec.
    4, 49 Stat. 1481.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Sections 175, 182, 183, 183b to 187, and 189, referred to in
    text, was in the original "the nine preceding sections", meaning
    R.S. Secs. 4282-4283B and 4284-4288.
      Section 175 of this Appendix, referred to in text, was repealed
    by act Oct. 9, 1940, ch. 777, Sec. 7, 54 Stat. 1028.

-COD-
                               CODIFICATION                           
      R.S. Sec. 4289 derived from act Mar. 3, 1851, ch. 43, Sec. 7, 9
    Stat. 636.
      Section, as enacted in the Revised Statutes, was as follows: "The
    provisions of this Title relating to the limitation of the
    liability of the owners of vessels, shall not apply to the owners
    of any canal-boat, barge, or lighter, or to any vessel of any
    description whatsoever used in rivers or inland navigation."
      It was amended, by striking out the words "this Title," and
    inserting the words "the seven preceding sections," by act Feb. 18,
    1875.
      It was further amended, to read in substance as set forth here,
    after the enactment of act June 26, 1884, ch. 121, Sec. 18, 23
    Stat. 57, classified to section 189 of this Appendix, by act June
    19, 1886.

-MISC1-
                                AMENDMENTS                            
      1936 - Act June 5, 1936, substituted "Except as otherwise
    specifically provided therein, the provisions of the nine preceding
    sections" for "The provisions of the seven preceding sections".

-FOOTNOTE-
    (!1) See References in Text note below.

-End-

-CITE-
    46 USC APPENDIX Sec. 189                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 8 - LIMITATION OF VESSEL OWNER'S LIABILITY

-HEAD-
    Sec. 189. Limitation of liability of owners of vessels for debts

-STATUTE-
      The individual liability of a shipowner shall be limited to the
    proportion of any or all debts and liabilities that his individual
    share of the vessel bears to the whole; and the aggregate
    liabilities of all the owners of a vessel on account of the same
    shall not exceed the value of such vessels and freight pending:
    Provided, That this provision shall not prevent any claimant from
    joining all the owners in one action; nor shall the same apply to
    wages due to persons employed by said shipowners.

-SOURCE-
    (June 26, 1884, ch. 121, Sec. 18, 23 Stat. 57.)

-COD-
                               CODIFICATION                           
      This section was enacted as part of the Shipping Act of 1884.
      The original text of the proviso read as follows: "Provided, That
    this provision shall not affect the liability of any owner incurred
    previous to the passage of this act, nor prevent any claimant from
    joining all the owners in one action; nor shall the same apply to
    wages due to persons employed by said shipowners."
      The provision concerning liabilities previously incurred was
    omitted.

-End-

-CITE-
    46 USC APPENDIX Sec. 190                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 8 - LIMITATION OF VESSEL OWNER'S LIABILITY

-HEAD-
    Sec. 190. Stipulations relieving from liability for negligence

-STATUTE-
      It shall not be lawful for the manager, agent, master, or owner
    of any vessel transporting merchandise or property from or between
    ports of the United States and foreign ports to insert in any bill
    of lading or shipping document any clause, covenant, or agreement
    whereby it, he, or they shall be relieved from liability for loss
    or damage arising from negligence, fault, or failure in proper
    loading, stowage, custody, care, or proper delivery of any and all
    lawful merchandise or property committed to its or their charge.
    Any and all words or clauses of such import inserted in bills of
    lading or shipping receipts shall be null and void and of no
    effect.

-SOURCE-
    (Feb. 13, 1893, ch. 105, Sec. 1, 27 Stat. 445.)

-MISC1-
                                SHORT TITLE                            
      Act Feb. 13, 1893, enacting this section and sections 191 to 196
    of this Appendix, is popularly known as the "Harter Act".

                              EFFECTIVE DATE                          
      Section 8 of act Feb. 13, 1893, provided: "That this act
    [enacting this section and sections 191 to 196 of this Appendix]
    shall take effect from and after the first day of July, eighteen
    hundred and ninety-three."

-End-

-CITE-
    46 USC APPENDIX Sec. 191                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 8 - LIMITATION OF VESSEL OWNER'S LIABILITY

-HEAD-
    Sec. 191. Stipulations relieving from exercise of due diligence in
      equipping vessels

-STATUTE-
      It shall not be lawful for any vessel transporting merchandise or
    property from or between ports of the United States of America and
    foreign ports, her owner, master, agent, or manager, to insert in
    any bill of lading or shipping document any covenant or agreement
    whereby the obligations of the owner or owners of said vessel to
    exercise due diligence (!1) properly equip, man, provision, and
    outfit said vessel, and to make said vessel seaworthy and capable
    of performing her intended voyage, or whereby the obligations of
    the master, officers, agents, or servants to carefully handle and
    stow her cargo and to care for and properly deliver same, shall in
    any wise be lessened, weakened, or avoided.

-SOURCE-
    (Feb. 13, 1893, ch. 105, Sec. 2, 27 Stat. 445.)

-MISC1-
                              EFFECTIVE DATE                          
      Section effective July 1, 1893, see section 8 of act Feb. 13,
    1893, set out as a note under section 190 of this Appendix.

-FOOTNOTE-
    (!1) So in original. Probably should be followed by "to".

-End-

-CITE-
    46 USC APPENDIX Sec. 192                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 8 - LIMITATION OF VESSEL OWNER'S LIABILITY

-HEAD-
    Sec. 192. Limitation of liability for errors of navigation, dangers
      of sea and acts of God

-STATUTE-
      If the owner of any vessel transporting merchandise or property
    to or from any port in the United States of America shall exercise
    due diligence to make the said vessel in all respects seaworthy and
    properly manned, equipped, and supplied, neither the vessel, her
    owner or owners, agent, or charterers, shall become or be held
    responsible for damage or loss resulting from faults or errors in
    navigation or in the management of said vessel nor shall the
    vessel, her owner or owners, charterers, agent, or master be held
    liable for losses arising from dangers of the sea or other
    navigable waters, acts of God, or public enemies, or the inherent
    defect, quality, or vice of the thing carried, or from
    insufficiency of package, or seizure under legal process, or for
    loss resulting from any act or omission of the shipper or owner of
    the goods, his agent or representative, or from saving or
    attempting to save life or property at sea, or from any deviation
    in rendering such service.

-SOURCE-
    (Feb. 13, 1893, ch. 105, Sec. 3, 27 Stat. 445.)

-MISC1-
                              EFFECTIVE DATE                          
      Section effective July 1, 1893, see section 8 of act Feb. 13,
    1893, set out as a note under section 190 of this Appendix.

-End-

-CITE-
    46 USC APPENDIX Sec. 193                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 8 - LIMITATION OF VESSEL OWNER'S LIABILITY

-HEAD-
    Sec. 193. Bills of lading to be issued; contents

-STATUTE-
      It shall be the duty of the owner or owners, masters, or agents
    of any vessel transporting merchandise or property from or between
    ports of the United States and foreign ports to issue to shippers
    of any lawful merchandise a bill of lading, or shipping document,
    stating, among other things, the marks necessary for
    identification, number of packages, or quantity, stating whether it
    be carrier's or shipper's weight, and apparent order or condition
    of such merchandise or property delivered to and received by the
    owner, master, or agent of the vessel for transportation, and such
    document shall be prima facie evidence of the receipt of the
    merchandise therein described.

-SOURCE-
    (Feb. 13, 1893, ch. 105, Sec. 4, 27 Stat. 445.)

-MISC1-
                              EFFECTIVE DATE                          
      Section effective July 1, 1893, see section 8 of act Feb. 13,
    1893, set out as a note under section 190 of this Appendix.

-End-

-CITE-
    46 USC APPENDIX Sec. 194                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 8 - LIMITATION OF VESSEL OWNER'S LIABILITY

-HEAD-
    Sec. 194. Penalties; liens; recovery

-STATUTE-
      For a violation of any of the provisions of sections 190 to 196
    of this Appendix the agent, owner, or master of the vessel guilty
    of such violation, and who refuses to issue on demand the bill of
    lading herein provided for, shall be liable to a fine not exceeding
    $2,000. The amount of the fine and costs for such violation shall
    be a lien upon the vessel, whose agent, owner, or master is guilty
    of such violation, and such vessel may be libeled therefor in any
    district court of the United States, within whose jurisdiction the
    vessel may be found. One-half of such penalty shall go to the party
    injured by such violation and the remainder to the Government of
    the United States.

-SOURCE-
    (Feb. 13, 1893, ch. 105, Sec. 5, 27 Stat. 446.)

-MISC1-
                              EFFECTIVE DATE                          
      Section effective July 1, 1893, see section 8 of act Feb. 13,
    1893, set out as a note under section 190 of this Appendix.

-End-

-CITE-
    46 USC APPENDIX Sec. 195                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 8 - LIMITATION OF VESSEL OWNER'S LIABILITY

-HEAD-
    Sec. 195. Certain provisions inapplicable to transportation of live
      animals

-STATUTE-
      Sections 190 and 193 of this Appendix shall not apply to the
    transportation of live animals.

-SOURCE-
    (Feb. 13, 1893, ch. 105, Sec. 7, 27 Stat. 446.)

-MISC1-
                              EFFECTIVE DATE                          
      Section effective July 1, 1893, see section 8 of act Feb. 13,
    1893, set out as a note under section 190 of this Appendix.

-End-

-CITE-
    46 USC APPENDIX Sec. 196                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 8 - LIMITATION OF VESSEL OWNER'S LIABILITY

-HEAD-
    Sec. 196. Certain laws unaffected

-STATUTE-
      Sections 190 to 196 of this Appendix shall not be held to modify
    or repeal sections 181 to 183 of this Appendix, or any other
    statute defining the liability of vessels, their owners, or
    representatives.

-SOURCE-
    (Feb. 13, 1893, ch. 105, Sec. 6, 27 Stat. 446.)

-MISC1-
                              EFFECTIVE DATE                          
      Section effective July 1, 1893, see section 8 of act Feb. 13,
    1893, set out as a note under section 190 of this Appendix.

-End-

-CITE-
    46 USC APPENDIX CHAPTER 12 - REGULATION OF
           VESSELS IN DOMESTIC COMMERCE                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 12 - REGULATION OF VESSELS IN DOMESTIC COMMERCE

-HEAD-
          CHAPTER 12 - REGULATION OF VESSELS IN DOMESTIC COMMERCE      

-MISC1-
    Sec.                                                     
    251.        Vessels employed in coasting trade or fisheries.      
                  (a)  Landing of catch of fish by foreign-flag
                        vessels.                                      
                  (b)  Sale or transfer for immediate consumption.    
                  (c)  Forfeitures and penalties.                     
    251a.       Remission or mitigation of fines, penalties or
                 forfeitures.                                         
    251b.       Regulations.                                          
    262.        Trade of documented vessel not to defraud revenue
                 laws.                                                
    277.        Inspection of documents.                              
    289.        Transportation of passengers in foreign vessels.      
    289a.       Transportation of passengers in Canadian vessels
                 between Rochester and Alexandria Bay.                
    289b.       Transportation of passengers and merchandise in
                 Canadian vessels between points in Alaska and United
                 States.                                              
    289c.       Transportation of passengers between Puerto Rico and
                 other United States ports; foreign-flag vessels;
                 unavailability of United States flag service.        
                  (a)  Authorization of transportation.               
                  (b)  Notification by Secretary; termination of
                        services.                                     
                  (c)  Extension of termination period.               
                  (d)  Reinstatement of coastwise privileges.         
                  (e)  "Passenger vessel" defined.                    
    290.        Omitted.                                              
    291.        Transshipment of imported merchandise intended for
                 immediate exportation.                               
    292.        Vessels that may engage in dredging.                  
                  (a)  In general.                                    
                  (b)  Exception.                                     
                  (c)  Penalty.                                       
    316.        Use of foreign vessels in United States ports.        
                  (a)  Towing vessels.                                
                  (b)  "Person" defined.                              
                  (c)  Foreign railroad companies using ferries,
                        tugboats, or towboats.                        
                  (d)  Salvaging operations by foreign vessels.       
                  (e)  Operations permitted by treaty.                
    316a.       Vessel escort operations and towing assistance.       
                  (a)  In general.                                    
                  (b)  Addition to towing vessel.                     
                  (c)  Relationship to other law.                     
                  (d)  Definition.                                    
                  (e)  Penalty.                                       
    319.        Civil penalties for trading without required
                 certificate of documentation.                        
    320.        Remission or mitigation of fines.                     
    321.        Penalty for illegal enrollment or license.            
    322.        Penalty for malfeasance.                              
    323.        Penalty for forgery and alteration.                   
    324.        Penalty for obstructing officers.                     
    326.        Exemption from forfeiture.                            
    327.        Notice of seizure.                                    
    328.        Recovery of forfeitures and penalties.                
    336.        Canal boats exempt from enrollment, license, and
                 customs fees.                                        

-End-

-CITE-
    46 USC APPENDIX Sec. 251                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 12 - REGULATION OF VESSELS IN DOMESTIC COMMERCE

-HEAD-
    Sec. 251. Vessels employed in coasting trade or fisheries

-STATUTE-
    (a) Landing of catch of fish by foreign-flag vessels
      Except as otherwise provided by treaty or convention to which the
    United States is a party, no foreign-flag vessel shall, whether
    documented as a cargo vessel or otherwise, land in a port of the
    United States its catch of fish taken on board such vessels on the
    high seas or fish products processed therefrom, or any fish or fish
    products taken on board such vessel on the high seas from a vessel
    engaged in fishing operations or in the processing of fish or fish
    products. The Secretary of Commerce may issue any regulations that
    the Secretary considers necessary to obtain information on the
    transportation of fish products by vessels of the United States for
    foreign fish processing vessels to points in the United States.
    (b) Sale or transfer for immediate consumption
      Subsection (a) of this section shall not be deemed to prohibit
    the landing by a foreign-flag vessel of not more than fifty feet
    overall length in a port of the Virgin Islands of the United States
    for immediate consumption in such islands of its catch of fresh
    fish, whole or with the heads, viscera, or fins removed, but not
    frozen, otherwise processed, or further advanced. No fish landed
    under this authorization shall be sold or transferred except for
    immediate consumption. Sale or transfer to an agent,
    representative, or employee of a freezer or cannery shall be deemed
    to be prohibited in the absence of satisfactory evidence that such
    sale or transfer is for immediate consumption. For the purposes of
    this subsection, the term "immediate consumption" shall not
    preclude the freezing, smoking, or other processing of such fresh
    fish by the ultimate consumer thereof.
    (c) Forfeitures and penalties
      Any fish landed in the Virgin Islands of the United States which
    are retained, sold, or transferred other than as authorized in
    subsection (b) of this section shall be liable to forfeiture and
    any person or persons retaining, selling, transferring, purchasing,
    or receiving such fish shall severally be liable to a penalty of
    $1,000 for each offense, in addition to any other penalty provided
    in law.

-SOURCE-
    (R.S. Sec. 4311; Sept. 2, 1950, ch. 842, 64 Stat. 577; Pub. L. 87-
    220, Sec. 1, Sept. 13, 1961, 75 Stat. 493; Pub. L. 96-61, Sec. 2,
    Aug. 15, 1979, 93 Stat. 407; Pub. L. 96-594, title I, Sec. 126(b),
    Dec. 24, 1980, 94 Stat. 3459; Pub. L. 100-239, Sec. 8(a), Jan. 11,
    1988, 101 Stat. 1783.)

-COD-
                               CODIFICATION                           
      R.S. Sec. 4311 derived from acts Feb. 18, 1793, ch. 8, Sec. 1, 1
    Stat. 305; Apr. 18, 1874, ch. 110, 18 Stat. 31.

-MISC1-
                                AMENDMENTS                            
      1988 - Subsec. (a). Pub. L. 100-239 inserted at end "The
    Secretary of Commerce may issue any regulations that the Secretary
    considers necessary to obtain information on the transportation of
    fish products by vessels of the United States for foreign fish
    processing vessels to points in the United States."
      1980 - Subsec. (a). Pub. L. 96-594 struck out provisions relating
    to vessels entitled to privileges of vessels employed in coasting
    trade or fisheries, and provisions defining "fisheries".
      1979 - Subsec. (a). Pub. L. 96-61 inserted provision defining
    "fisheries".
      1961 - Pub. L. 87-220 designated existing provisions as subsec.
    (a), and added subsecs. (b) and (c).
      1950 - Act Sept. 2, 1950, inserted second sentence to increase
    protection to American fishermen.

                     EFFECTIVE DATE OF 1980 AMENDMENT                 
      Section 128 of Pub. L. 96-594 provided in part that the amendment
    made by Pub. L. 96-594 is effective on first day of eighteenth
    month following December 1980.

                LANDING OF CATCH OF FISH BY FOREIGN VESSELS            
      Provisions of this section prohibiting the landing of fish in
    United States ports by foreign-flag vessels direct from fishing
    grounds unaffected by Pub. L. 87-814, see section 6 of Pub. L. 87-
    814, set out as a note under section 951 of Title 16,
    Conservation.

-End-

-CITE-
    46 USC APPENDIX Sec. 251a                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 12 - REGULATION OF VESSELS IN DOMESTIC COMMERCE

-HEAD-
    Sec. 251a. Remission or mitigation of fines, penalties or
      forfeitures

-STATUTE-
      Any fine, penalty, or forfeiture incurred under the provisions of
    this Act shall be subject to remission or mitigation in accordance
    with section 2107(b) of title 46.

-SOURCE-
    (Pub. L. 87-220, Sec. 2, Sept. 13, 1961, 75 Stat. 493.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This Act, referred to in text, is Pub. L. 87-220, Sept. 13, 1961,
    75 Stat. 493, which enacted this section and section 251b of this
    Appendix, and amended section 251 of this Appendix. For complete
    classification of this Act to the Code, see Tables.
      "Section 2107(b) of title 46" substituted in text for "section
    5294 of the Revised Statutes, as amended (46 U.S.C. 7)" on
    authority of Pub. L. 98-89, Sec. 2(b), Aug. 26, 1983, 97 Stat. 598,
    section 1 of which enacted Title 46, Shipping.

-End-

-CITE-
    46 USC APPENDIX Sec. 251b                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 12 - REGULATION OF VESSELS IN DOMESTIC COMMERCE

-HEAD-
    Sec. 251b. Regulations

-STATUTE-
      The Secretary of the Treasury may issue such regulations as he
    deems necessary for the enforcement of the provisions of this Act.

-SOURCE-
    (Pub. L. 87-220, Sec. 3, Sept. 13, 1961, 75 Stat. 493.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This Act, referred to in text, is Pub. L. 87-220, Sept. 13, 1961,
    75 Stat. 493, which enacted this section and section 251a of this
    Appendix, and amended section 251 of this Appendix. For complete
    classification of this Act to the Code, see Tables.

-End-

-CITE-
    46 USC APPENDIX Sec. 262                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 12 - REGULATION OF VESSELS IN DOMESTIC COMMERCE

-HEAD-
    Sec. 262. Trade of documented vessel not to defraud revenue laws

-STATUTE-
      No documented vessel shall be employed in any trade whereby the
    revenue laws of the United States shall be defrauded.

-SOURCE-
    (R.S. Sec. 4320; Feb. 27, 1877, ch. 69, Sec. 1, 19 Stat. 251; Jan.
    16, 1895, ch. 24, Sec. 3, 28 Stat. 625; Pub. L. 96-594, title I,
    Sec. 126(c), Dec. 24, 1980, 94 Stat. 3459.)

-COD-
                               CODIFICATION                           
      R.S. Sec. 4320 derived from act Feb. 18, 1793, ch. 8, Sec. 4, 1
    Stat. 306.
      R.S. Sec. 4320, as originally enacted, was as follows: "In order
    to the licensing of any vessel for carrying on the coasting-trade
    or fisheries, the husband, or managing owner, together with the
    master thereof, with one or more sureties to the satisfaction of
    the collector granting the same, shall become bound to pay to the
    United States, if such vessel be of the burden of five tons and
    less than twenty tons, the sum of one hundred dollars; and if
    twenty tons and not exceeding thirty tons, the sum of two hundred
    dollars; and if above thirty tons and not exceeding sixty tons, the
    sum of five hundred dollars; and if above sixty tons, the sum of
    one thousand dollars, in case it shall appear, within two years
    from the date of the bond, that such vessel has been employed in
    any trade whereby the revenue of the United States has been
    defrauded, during the time the license granted to such vessel
    remained in force. The master of such vessel shall also swear that
    he is a citizen of the United States, and that such license shall
    not be used for any other vessel or any other employment than that
    for which it is specially granted, or in any trade or business
    whereby the revenue of the United States may be defrauded; and if
    such vessel be less than twenty tons burden, the husband or
    managing owner shall swear that she is wholly the property of
    citizens of the United States; whereupon it shall be the duty of
    the collector of the district comprehending the port whereto such
    vessel may belong, the duty of six cents per ton being first paid,
    to grant a license."
      It was amended by act Feb. 27, 1877, by striking out "the duty of
    six cents per ton being first paid."
      It was amended generally by act Jan. 16, 1895.

-MISC1-
                                AMENDMENTS                            
      1980 - Pub. L. 96-594 substituted "documented" for "licensed",
    and struck out provisions respecting oaths required of master, etc.

                     EFFECTIVE DATE OF 1980 AMENDMENT                 
      Section 128 of Pub. L. 96-594 provided in part that the amendment
    made by Pub. L. 96-594 is effective on first day of eighteenth
    month following December 1980.

-End-

-CITE-
    46 USC APPENDIX Sec. 277                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 12 - REGULATION OF VESSELS IN DOMESTIC COMMERCE

-HEAD-
    Sec. 277. Inspection of documents

-STATUTE-
      Any officer concerned in the collection of the revenue may at all
    times inspect the certificate of documentation of any documented
    vessel or any document in lieu thereof; and if the master or other
    person in charge or command of any such vessel shall not exhibit
    the same, when required by such officer, unless the vessel is one
    which by regulation of the Secretary of Transportation is not
    required to have its certificate of documentation or document in
    lieu thereof on board, such master or person in charge or command
    shall be liable to a penalty of $100, unless the failure to do so
    is willful, in which case he shall be liable to a penalty of $1,000
    and to a fine of not more than $1,000 or imprisonment for not more
    than one year, or both.

-SOURCE-
    (R.S. Sec. 4336; Aug. 5, 1935, ch. 438, title III, Sec. 312, 49
    Stat. 528; Pub. L. 85-237, Sec. 2, Aug. 30, 1957, 71 Stat. 518;
    Pub. L. 103-182, title VI, Sec. 686(a)(5), Dec. 8, 1993, 107 Stat.
    2220.)

-COD-
                               CODIFICATION                           
      R.S. Sec. 4336 derived from act Feb. 18, 1793, ch. 8, Sec. 13, 1
    Stat. 309.

-MISC1-
                                AMENDMENTS                            
      1993 - Pub. L. 103-182 substituted "certificate of documentation
    of any documented vessel" for "register or enrollment or license of
    any vessel" and "Secretary of Transportation is not required to
    have its certificate of documentation" for "Secretary of the
    Treasury is not required to have its register or enrollment or
    license".
      1957 - Pub. L. 85-237 provided for penalties against other
    officer in charge or command of vessel and by excepting vessels
    which are not required by regulation of the Secretary of the
    Treasury to exhibit their documents on board.
      1935 - Act Aug. 5, 1935, provided for inspection of register or
    any document and punishment for willful failure to exhibit
    document.

-End-

-CITE-
    46 USC APPENDIX Sec. 289                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 12 - REGULATION OF VESSELS IN DOMESTIC COMMERCE

-HEAD-
    Sec. 289. Transportation of passengers in foreign vessels

-STATUTE-
      No foreign vessel shall transport passengers between ports or
    places in the United States, either directly or by way of a foreign
    port, under a penalty of $200 for each passenger so transported and
    landed.

-SOURCE-
    (June 19, 1886, ch. 421, Sec. 8, 24 Stat. 81; Feb. 17, 1898, ch.
    26, Sec. 2, 30 Stat. 248.)

-MISC1-
                                AMENDMENTS                            
      1898 - Act Feb. 17, 1898, amended section generally, increasing
    from $2 to $200 the penalty for transporting passengers in foreign
    vessels.

-End-

-CITE-
    46 USC APPENDIX Sec. 289a                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 12 - REGULATION OF VESSELS IN DOMESTIC COMMERCE

-HEAD-
    Sec. 289a. Transportation of passengers in Canadian vessels between
      Rochester and Alexandria Bay

-STATUTE-
      Until such time as passenger service shall be established by
    vessels of the United States between the port of Rochester, New
    York, and the port of Alexandria Bay, New York, the Commissioner of
    Customs is authorized in his discretion to issue annually permits
    to Canadian passenger vessels to transport passengers between these
    ports; such Canadian vessels holding such permits not to be subject
    to the provisions of section 289 of this Appendix.

-SOURCE-
    (Apr. 26, 1938, ch. 174, 52 Stat. 223; 1946 Reorg. Plan No. 3,
    Secs. 101-104, eff. July 16, 1946, 11 F.R. 7875, 60 Stat. 1097.)

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      For transfer of functions, personnel, assets, and liabilities of
    the United States Customs Service of the Department of the
    Treasury, including functions of the Secretary of the Treasury
    relating thereto, to the Secretary of Homeland Security, and for
    treatment of related references, see sections 203(1), 551(d),
    552(d), and 557 of Title 6, Domestic Security, and the Department
    of Homeland Security Reorganization Plan of November 25, 2002, as
    modified, set out as a note under section 542 of Title 6.
      For transfer of functions of other officers, employees, and
    agencies of Department of the Treasury, with certain exceptions, to
    Secretary of the Treasury with power to delegate, see Reorg. Plan
    No. 26 of 1950, Secs. 1, 2, eff. July 31, 1950, 15 F.R. 4935, 64
    Stat. 1280, 1281, set out in the Appendix to Title 5, Government
    Organization and Employees. Commissioner of Customs, referred to in
    text, was an officer of Department the Treasury.
      "Commissioner of Customs" substituted in text for "Secretary of
    Commerce" on authority of Reorg. Plan No. 3 of 1946, Secs. 101-104,
    set out as a note preceding section 3 of this Appendix.

    ADMINISTRATIVE DELEGATION OF FUNCTIONS BY SECRETARY OF THE TREASURY
      Administrative delegation of functions by Secretary of the
    Treasury, see note set out preceding section 3 of this Appendix.

-End-

-CITE-
    46 USC APPENDIX Sec. 289b                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 12 - REGULATION OF VESSELS IN DOMESTIC COMMERCE

-HEAD-
    Sec. 289b. Transportation of passengers and merchandise in Canadian
      vessels between points in Alaska and United States

-STATUTE-
      Notwithstanding the provisions of law of the United States
    restricting to vessels of the United States the transportation of
    passengers and merchandise directly or indirectly from any port in
    the United States to another port of the United States, passengers
    may be transported on Canadian vessels between ports in
    southeastern Alaska, and passengers and merchandise may be
    transported on Canadian vessels between Hyder, Alaska, and other
    points in southeastern Alaska, and between Hyder, Alaska, and other
    points in the United States outside Alaska, either directly or via
    a foreign port, or for any part of the transportation until the
    Secretary of Transportation determines that United States-flag
    service is available to provide such transportation.

-SOURCE-
    (Pub. L. 87-77, June 30, 1961, 75 Stat. 196; Pub. L. 97-31, Sec.
    12(22), Aug. 6, 1981, 95 Stat. 155.)

-MISC1-
                                AMENDMENTS                            
      1981 - Pub. L. 97-31 substituted "Secretary of Transportation"
    for "Secretary of Commerce".

                             PRIOR PROVISIONS                         
      Temporary provisions which authorized transportation of
    passengers and merchandise in Canadian vessels between points in
    Alaska and United States, were contained in the following acts:
      Apr. 5, 1960, Pub. L. 86-410, 74 Stat. 16.
      July 31, 1959, Pub. L. 86-126, 73 Stat. 272.
      June 30, 1958, Pub. L. 85-473, 72 Stat. 244.
      July 11, 1957, Pub. L. 85-103, 71 Stat. 294.
      Apr. 18, 1956, ch. 207, 70 Stat. 114.
      May 7, 1955, ch. 35, 69 Stat. 47.
      June 29, 1954, ch. 413, 68 Stat. 321.
      July 16, 1953, ch. 201, 67 Stat. 175.
      June 11, 1952, ch. 391, 66 Stat. 133.
      June 27, 1951, ch. 153, 65 Stat. 90.
      June 29, 1950, ch. 409, 64 Stat. 301.
      Aug. 22, 1949, ch. 493, 63 Stat. 622.

-End-

-CITE-
    46 USC APPENDIX Sec. 289c                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 12 - REGULATION OF VESSELS IN DOMESTIC COMMERCE

-HEAD-
    Sec. 289c. Transportation of passengers between Puerto Rico and
      other United States ports; foreign-flag vessels; unavailability
      of United States flag service

-STATUTE-
    (a) Authorization of transportation
      Notwithstanding any other provision of law, passengers may be
    transported on passenger vessels not qualified to engage in the
    coastwise trade between ports in Puerto Rico and other ports in the
    United States, directly or by way of a foreign port, except as
    otherwise provided in this section.
    (b) Notification by Secretary; termination of services
      (1) Upon a showing to the Secretary of Transportation, by the
    vessel owner or charterer, that service aboard a United States
    passenger vessel qualified to engage in the coastwise trade is
    being offered or advertised pursuant to a Certificate of Financial
    Responsibility for Indemnification of Passengers for Nonperformance
    of Transportation (46 App. U.S.C. 817e) from the Federal Maritime
    Commission for service in the coastwise trade between ports in
    Puerto Rico and other ports in the United States, the Secretary
    shall notify the owner or operator of each vessel transporting
    passengers under authority of this section that he shall, within
    270 days after notification, terminate all such service. Coastwise
    privileges granted to every owner or operator under this section
    shall expire on the 270th day following the Secretary's
    notification.
      (2) Upon a showing to the Secretary, by the vessel owner or
    charterer, that service aboard a United States passenger vessel not
    qualified to engage in the coastwise trade is being offered or
    advertised pursuant to a Certificate of Financial Responsibility
    for Indemnification of Passengers for Nonperformance of
    Transportation (46 App. U.S.C. 817e) from the Federal Maritime
    Commission for service in the coastwise trade between ports in
    Puerto Rico and other ports in the United States, the Secretary
    shall notify the owner or operator of each foreign-flag vessel
    transporting passengers under authority of this section that he
    shall, within 270 days after notification, terminate all such
    service. Coastwise privileges granted to every owner or operator of
    a foreign-flag vessel transporting passengers under authority of
    this section shall expire on the 270th day following the
    Secretary's notification.
    (c) Extension of termination period
      If, at the expiration of the 270-day period specified in
    subsections (b)(1) and (b)(2) of this section, the vessel that has
    been offering or advertising service pursuant to a certificate
    described in either of those subsections has not entered the
    coastwise passenger trade between ports in Puerto Rico and other
    ports in the United States, then the termination of service
    required by either of those subsections shall not be required until
    90 days following the entry into that trade by the United States
    vessel.
    (d) Reinstatement of coastwise privileges
      Any coastwise privileges granted in this section that expire
    under subsection (b)(1) or (b)(2) of this section shall be
    reinstated upon a determination by the Secretary that the service
    on which the expiration of the privileges was based is no longer
    available.
    (e) "Passenger vessel" defined
      For the purposes of subsections (b)(1) and (b)(2) of this
    section, the term "passenger vessel" means any vessel of similar
    size or offering service comparable to any other vessel
    transporting passengers under authority of this section.

-SOURCE-
    (Pub. L. 98-563, Oct. 30, 1984, 98 Stat. 2916.)

-End-

-CITE-
    46 USC APPENDIX Sec. 290                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 12 - REGULATION OF VESSELS IN DOMESTIC COMMERCE

-HEAD-
    Sec. 290. Omitted

-COD-
                               CODIFICATION                           
      Section, act Feb. 17, 1898, ch. 26, Sec. 1, 30 Stat. 248, related
    to transportation of merchandise in foreign vessels. See section
    883 of this Appendix.

-End-

-CITE-
    46 USC APPENDIX Sec. 291                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 12 - REGULATION OF VESSELS IN DOMESTIC COMMERCE

-HEAD-
    Sec. 291. Transshipment of imported merchandise intended for
      immediate exportation

-STATUTE-
      Whenever merchandise is imported into the United States by sea
    for immediate exportation to a foreign port by sea, or by a river,
    the right to ascend or descend which for the purposes of commerce
    is secured by treaty to the citizens of the United States and the
    subjects of a foreign power, the Secretary of the Treasury is
    authorized to prescribe regulations for the transshipment and
    transportation of such merchandise.

-SOURCE-
    (Feb. 17, 1898, ch. 26, Sec. 3, 30 Stat. 248.)

-End-

-CITE-
    46 USC APPENDIX Sec. 292                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 12 - REGULATION OF VESSELS IN DOMESTIC COMMERCE

-HEAD-
    Sec. 292. Vessels that may engage in dredging

-STATUTE-
    (a) In general
      Except as provided in subsection (b) of this section, a vessel
    may engage in dredging in the navigable waters of the United States
    only if - 
        (1) the vessel meets the requirements of section 883 of this
      Appendix and sections 802 and 803 of this Appendix for engaging
      in the coastwise trade;
        (2) when chartered, the charterer of the vessel is a citizen of
      the United States under sections 802 and 803 of this Appendix for
      engaging in the coastwise trade; and
        (3) for a vessel that is at least 5 net tons, the vessel is
      documented under chapter 121 of title 46 with a coastwise
      endorsement.
    (b) Exception
      A documented vessel with a registry endorsement may engage in the
    dredging of gold in Alaska.
    (c) Penalty
      When a vessel is operated in knowing violation of this section,
    that vessel and its equipment are liable to seizure by and
    forfeiture to the United States Government.

-SOURCE-
    (May 28, 1906, ch. 2566, Sec. 1, 34 Stat. 204; Pub. L. 102-587,
    title V, Sec. 5501(a)(1), Nov. 4, 1992, 106 Stat. 5084.)

-MISC1-
                                AMENDMENTS                            
      1992 - Pub. L. 102-587 amended section generally. Prior to
    amendment, section read as follows: "A foreign-built dredge shall
    not, under penalty of forfeiture, engage in dredging in the United
    States unless documented as a vessel of the United States."

                    NONAPPLICABILITY TO CERTAIN VESSELS                
      Section 5501(a)(2) of Pub. L. 102-587 provided that: "The
    amendment made by paragraph (1) [amending this section] does not
    apply to - 
        "(A)(i) the vessel STUYVESANT, official number 648540;
        "(ii) any other hopper dredging vessel documented under chapter
      121 of title 46, United States Code before the effective date of
      this Act [Nov. 4, 1992] and chartered to Stuyvesant Dredging
      Company or to an entity in which it has an ownership interest;
      however, this exception expires on December 3, 2022 or when the
      vessel STUYVESANT ceases to be documented under chapter 121,
      whichever first occurs; and
        "(iii) any other non-hopper dredging vessel documented under
      chapter 121 and chartered to Stuyvesant Dredging Company or to an
      entity in which it has an ownership interest, as is necessary (a)
      to fulfill dredging obligations under a specific contract,
      including any extension periods; or (b) as temporary replacement
      capacity for a vessel which has become disabled but only for so
      long as the disability shall last and until the vessel is in a
      position to fully resume dredging operations; however, this
      exception expires on December 8, 2022 or when the vessel
      STUYVESANT ceases to be documented under chapter 121, whichever
      first occurs;
        "(B) the vessel COLUMBUS, official number 590658, except that
      the vessel's certificate of documentation shall be endorsed to
      prohibit the vessel from engaging in the transportation of
      merchandise (except valueless material), including dredge
      material of value, between places within the navigable waters of
      the United States;
        "(C) a vessel that is engaged in dredged material excavation if
      that excavation is not more than a minority of the total cost of
      the construction contract in which the excavation is a single,
      integral part, and the vessel is - 
          "(i) built in the United States;
          "(ii) a non-self-propelled mechanical clamshell dredging
        vessel; and
          "(iii) owned or chartered by a corporation that had on file
        with the Secretary of Transportation, on August 1, 1989, the
        certificate specified in section 27A of the Merchant Marine
        Act, 1920 (46 App. U.S.C. 883-1); or
        "(D) any other documented vessel engaged in dredging and time
      chartered to an entity that, on August 1, 1989, was, and has
      continuously remained, the parent of a corporation that had on
      file with the Secretary of Transportation on August 1, 1989, a
      certificate specified in section 27A of the Merchant Marine Act,
      1920 (46 App. U.S.C. 883-1) if the vessel is - 
          "(i) not engaged in a federally funded navigation dredging
        project; and
          "(ii) engaged only in dredging associated with, and integral
        to, accomplishment of that parent's regular business
        requirements."

-End-

-CITE-
    46 USC APPENDIX Sec. 316                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 12 - REGULATION OF VESSELS IN DOMESTIC COMMERCE

-HEAD-
    Sec. 316. Use of foreign vessels in United States ports

-STATUTE-
    (a) Towing vessels
      It shall be unlawful for any vessel not wholly owned by a person
    who is a citizen of the United States within the meaning of the
    laws respecting the documentation of vessels and not having in
    force a certificate of documentation issued under section 12106 of
    title 46 to tow any vessel other than a vessel in distress, from
    any port or place in the United States, its Territories or
    possessions, embraced within the coastwise laws of the United
    States, to any other port or place within the same, either directly
    or by way of a foreign port or place, or to do any part of such
    towing, or to tow any such vessel, from point to point within the
    harbors of such places, or to tow any vessel transporting valueless
    material or any dredged material, regardless of whether it has
    commercial value, from a point or place in the United States or a
    point or place on the high seas within the Exclusive Economic Zone
    as defined in the Presidential Proclamation of March 10, 1983, to
    another point or place in the United States or a point or place on
    the high seas within that Exclusive Economic Zone. The owner and
    master of any vessel towing another vessel in violation of the
    provisions of this section shall each be liable to a fine of not
    less than $250 nor more than $1,000, which fines shall constitute
    liens upon the offending vessel enforceable through the district
    court of the United States for any district in which such vessel
    may be found, and clearance shall not be granted to such vessel
    until the fines have been paid. The towing vessel shall also be
    further liable to a penalty of $50 per ton on the measurement of
    every vessel towed in violation of this section, which sum may be
    recovered by way of libel or suit.
    (b) "Person" defined
      The term "person" as used in subsection (a) of this section,
    shall be held to include persons, firms, partnerships,
    associations, organizations, and corporations, doing business or
    existing under or by the authority of the laws of the United
    States, or of any State, Territory, district, or other subdivision
    thereof.
    (c) Foreign railroad companies using ferries, tugboats, or towboats
      Any foreign railroad company or corporation, whose road enters
    the United States by means of a ferry, tugboat, or towboat, may own
    such vessel and operate the same in connection with the water
    transportation of the passenger, freight, express, baggage, and
    mail cars used by such road, together with the passengers, freight,
    express matter, baggage, and mails transported in such cars,
    without being subject to any other or different restrictions than
    those imposed by law on any vessel of the United States entering
    ports of the United States from ports in the same foreign country:
    Provided, That except as authorized by section 883 of this
    Appendix, such ferry, tugboat, or towboat shall not, under penalty
    of forfeiture, be used in connection with the transportation of any
    merchandise shipped from any port or place in the United States,
    its Territories or possessions, embraced within the coastwise laws
    of the United States, to any other port or place within the same.
    (d) Salvaging operations by foreign vessels
      No foreign vessel shall, under penalty of forfeiture, engage in
    salvaging operations on the Atlantic or Pacific coast of the United
    States, in any portion of the Great Lakes or their connecting or
    tributary waters, including any portion of the Saint Lawrence River
    through which the international boundary line extends, or in
    territorial waters of the United States on the Gulf of Mexico,
    except when authorized by a treaty or in accordance with the
    provisions of section 725 of this Appendix: Provided, however, That
    if, on investigation, the Commissioner of Customs is satisfied that
    no suitable vessel wholly owned by a person who is a citizen of the
    United States and documented under the laws of the United States or
    numbered pursuant to the Act of June 7, 1918, as amended (46 U.S.C.
    288), is available in any particular locality he may authorize the
    use of a foreign vessel or vessels in salvaging operations in that
    locality and no penalty shall be incurred for such authorized use.
    (e) Operations permitted by treaty
      Nothing in this section shall be held or construed to prohibit or
    restrict any assistance to vessels or salvage operations authorized
    by article II of the treaty between the United States and Great
    Britain "concerning reciprocal rights for United States and Canada
    in the conveyance of prisoners and wrecking and salvage" signed at
    Washington, May 18, 1908 (35 Stat. 2036), or by the treaty between
    the United States and Mexico "to facilitate assistance to and
    salvage of vessels in territorial waters", signed at Mexico City,
    June 13, 1935 (49 Stat. 3359).

-SOURCE-
    (R.S. Sec. 4370; June 11, 1940, ch. 324, 54 Stat. 304; 1946 Reorg.
    Plan No. 3, Secs. 101-104, eff. July 16, 1946, 11 F.R. 7875, 60
    Stat. 1097; Pub. L. 99-307, Sec. 10, May 19, 1986, 100 Stat. 447;
    Pub. L. 100-329, Sec. 2, June 7, 1988, 102 Stat. 589; Pub. L. 104-
    324, title XI, Sec. 1115(b)(3), Oct. 19, 1996, 110 Stat. 3972.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Presidential Proclamation of March 10, 1983, referred to in
    subsec. (a), is Proc. No. 5030, Mar. 10, 1983, 48 F.R. 10605, which
    is set out as a note under section 1453 of Title 16, Conservation.
      Act of June 7, 1918, referred to in subsec. (d), was classified
    to section 288 of former Title 46, Shipping, and was repealed by
    Pub. L. 85-911, Sec. 12, Sept. 2, 1958, 72 Stat. 1758, eff. Apr. 1,
    1960. Provisions relating to numbering of vessels are contained in
    section 12301 et seq. of Title 46, Shipping.

-COD-
                               CODIFICATION                           
      R.S. Sec. 4370 derived from acts July 18, 1866, ch. 201, Sec. 21,
    14 Stat. 183; Feb. 25, 1867, ch. 78, 14 Stat. 410.

-MISC1-
                                AMENDMENTS                            
      1996 - Subsec. (a). Pub. L. 104-324 struck out "or 12107" after
    "section 12106".
      1988 - Subsec. (a). Pub. L. 100-329 inserted provision at end of
    first sentence relating to transportation of valueless material or
    any dredged material, regardless of commercial value.
      1986 - Subsec. (a). Pub. L. 99-307 substituted "a certificate of
    documentation issued under section 12106 or 12107 of title 46" for
    "a certificate of registry, a certificate of enrollment, or a
    license, issued pursuant to title 48 or title 50 of the Revised
    Statutes or a certificate of award of number issued pursuant to the
    Act of June 7, 1918, as amended (46 U.S.C. 288)," and "a vessel in
    distress" for "a vessel of foreign registry, or a vessel in
    distress".
      1940 - Act June 11, 1940, designated existing provisions as
    subsec. (a), expanded coverage to include all vessels and increased
    the penalties for violations, and added subsecs. (b) to (e).

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      For transfer of functions, personnel, assets, and liabilities of
    the United States Customs Service of the Department of the
    Treasury, including functions of the Secretary of the Treasury
    relating thereto, to the Secretary of Homeland Security, and for
    treatment of related references, see sections 203(1), 551(d),
    552(d), and 557 of Title 6, Domestic Security, and the Department
    of Homeland Security Reorganization Plan of November 25, 2002, as
    modified, set out as a note under section 542 of Title 6.
      For transfer of functions of other officers, employees, and
    agencies of Department of the Treasury, with certain exceptions, to
    Secretary of the Treasury with power to delegate, see Reorg. Plan
    No. 26 of 1950, Secs. 1, 2, eff. July 31, 1950, 15 F.R. 4935, 64
    Stat. 1280, 1281, set out in the Appendix to Title 5, Government
    Organization and Employees. The Commissioner of Customs, referred
    to in text, was an officer of Department of the Treasury.
      "Commissioner of Customs" substituted for "Secretary of Commerce"
    in subsec. (d) on authority of Reorg. Plan No. 3 of 1946, Secs. 101-
    104, set out as a note preceding section 3 of this Appendix.

    ADMINISTRATIVE DELEGATION OF FUNCTIONS BY SECRETARY OF THE TREASURY
      Administrative delegation of functions by Secretary of the
    Treasury, see note set out preceding section 3 of this Appendix.

-MISC2-
           NONAPPLICABILITY OF PUB. L. 100-329 TO CERTAIN VESSEL       
      Amendment by Pub. L. 100-329 not applicable to a vessel engaged
    in the transportation of valueless material or valueless dredged
    material and owned or chartered by a corporation that had on file
    with Secretary of Transportation on Aug. 1, 1989, the certificate
    specified in section 883-1 of this Appendix, see section 5501(c) of
    Pub. L. 102-587, set out as a note under section 883 of this
    Appendix.

-End-

-CITE-
    46 USC APPENDIX Sec. 316a                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 12 - REGULATION OF VESSELS IN DOMESTIC COMMERCE

-HEAD-
    Sec. 316a. Vessel escort operations and towing assistance

-STATUTE-
    (a) In general
      Except in the case of a vessel in distress, only a vessel of the
    United States (as that term is defined in section 2101 of title 46)
    may perform the following escort vessel operations within the
    navigable waters of the United States:
        (1) Operations that commence or terminate at a port or place in
      the United States.
        (2) Operations required by United States law or regulation.
        (3) Operations provided in whole or in part within or through
      navigation facilities owned, maintained, or operated by the
      United States Government or the approaches to those facilities,
      other than facilities operated by the St. Lawrence Seaway
      Development Corporation on the St. Lawrence River portion of the
      Seaway.
    (b) Addition to towing vessel
      In the case of a vessel being towed under section 316(a) of this
    Appendix, an escort vessel is any vessel assigned and dedicated to
    the vessel being towed in addition to any towing vessel required
    under that section.
    (c) Relationship to other law
      Nothing in this section shall affect or be construed or
    interpreted to affect or modify section 316(a) of this Appendix.
    (d) Definition
      In this section, the term "escort vessel" means any vessel that
    is assigned and dedicated to assist another vessel, whether or not
    tethered to that vessel, solely as a safety precaution to assist in
    controlling the speed or course of the assisted vessel in the event
    of a steering or propulsion equipment failure, or any other similar
    emergency circumstance, or in restricted waters where additional
    assistance in maneuvering the vessel is required to ensure its safe
    operation.
    (e) Penalty
      A person violating this section is liable to the United States
    Government for a civil penalty of not more than $10,000 for each
    day during which the violation occurs.

-SOURCE-
    (Pub. L. 107-295, title IV, Sec. 404, Nov. 25, 2002, 116 Stat.
    2114.)

-End-

-CITE-
    46 USC APPENDIX Sec. 319                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 12 - REGULATION OF VESSELS IN DOMESTIC COMMERCE

-HEAD-
    Sec. 319. Civil penalties for trading without required certificate
      of documentation

-STATUTE-
      Whenever a vessel, entitled to be documented and not so
    documented, is employed in a trade for which certificates of
    documentation are issued under the vessel documentation laws, other
    than a trade covered by a registry, the vessel is liable to a civil
    penalty of $500 for each port at which it arrives without the
    proper certificate of documentation, and if it has on board any
    merchandise of foreign growth or manufacture (sea stores excepted),
    or any taxable domestic spirits, wines, or other alcoholic liquors,
    on which the duties or taxes have not been paid or secured to be
    paid, the vessel, together with its equipment and cargo, is liable
    to seizure and forfeiture. Marks, labels, brands, or stamps,
    indicative of foreign origin, upon or accompanying merchandise or
    containers of merchandise found on board such vessel, shall be
    prima facie evidence of the foreign origin of such merchandise.

-SOURCE-
    (June 19, 1886, ch. 421, Sec. 7, 24 Stat. 81; Aug. 5, 1935, ch.
    438, title III, Sec. 314, 49 Stat. 529; Pub. L. 96-594, title I,
    Sec. 126(e), Dec. 24, 1980, 94 Stat. 3459.)

-MISC1-
                                AMENDMENTS                            
      1980 - Pub. L. 96-594 substituted provisions relating to
    violations and penalties for employment in a trade of a vessel
    entitled to be documented but not so documented for provisions
    relating to fines and penalties for trading without a license by a
    vessel twenty tons or upward, and struck out provisions respecting
    expiration of a license while a vessel is at sea.
      1935 - Act Aug. 5, 1935, provided for forfeiture, to deem marks,
    etc., prima facie evidence of foreign origin of merchandise, and to
    substitute "said fine or forfeiture" for "said fine of $30" in last
    sentence.

                     EFFECTIVE DATE OF 1980 AMENDMENT                 
      Section 128 of Pub. L. 96-594 provided in part that the amendment
    made by Pub. L. 96-594 is effective on first day of eighteenth
    month following December 1980.

-End-

-CITE-
    46 USC APPENDIX Sec. 320                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 12 - REGULATION OF VESSELS IN DOMESTIC COMMERCE

-HEAD-
    Sec. 320. Remission or mitigation of fines

-STATUTE-
      The fines imposed by sections 5 (!1) and 6 (!1) of this act and
    sections 289 and 319 of this Appendix shall be subject to remission
    or mitigation by the Commissioner of Customs when the offense was
    not willfully committed, under such regulations and methods of
    ascertaining the facts as may seem to him advisable.

-SOURCE-
    (June 19, 1886, ch. 421, Sec. 9, 24 Stat. 81; Feb. 14, 1903, ch.
    552, Sec. 10, 32 Stat. 829; Mar. 4, 1913, ch. 141, Sec. 1, 37 Stat.
    736; 1946 Reorg. Plan No. 3, Secs. 101-104, eff. July 16, 1946, 11
    F.R. 7875, 60 Stat. 1097.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 5 of this act, referred to in text, is section 5 of act
    June 19, 1886, which was classified to section 77 of former Title
    46, Shipping, and was repealed by Pub. L. 99-509, title V, Sec.
    5104(b), Oct. 21, 1986, 100 Stat. 1928, and reenacted by section
    5101(3) thereof as sections 14502 and 14512 of Title 46, Shipping.
      Section 6 of this act, referred to in text, is section 6 of act
    June 19, 1886, which was classified to section 45 of former Title
    46 and was repealed by Pub. L. 96-594, title I, Sec. 127, Dec. 24,
    1980, 94 Stat. 3459.

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      For transfer of functions, personnel, assets, and liabilities of
    the United States Customs Service of the Department of the
    Treasury, including functions of the Secretary of the Treasury
    relating thereto, to the Secretary of Homeland Security, and for
    treatment of related references, see sections 203(1), 551(d),
    552(d), and 557 of Title 6, Domestic Security, and the Department
    of Homeland Security Reorganization Plan of November 25, 2002, as
    modified, set out as a note under section 542 of Title 6.
      For transfer of functions of other officers, employees, and
    agencies of Department of the Treasury, with certain exceptions, to
    Secretary of the Treasury with power to delegate, see Reorg. Plan
    No. 26 of 1950, Secs. 1, 2, eff. July 31, 1950, 15 F.R. 4935, 64
    Stat. 1280, 1281, set out in the Appendix to Title 5, Government
    Organization and Employees. Commissioner of Customs, referred to in
    text, was an officer of Department of the Treasury.
      "Commissioner of Customs" substituted in text for "Secretary of
    Commerce" on authority of Reorg. Plan No. 3 of 1946, Secs. 101-104,
    set out as a note preceding section 3 of this Appendix.
      Upon incorporation into the Code, "Secretary of Commerce"
    substituted for "Secretary of the Treasury" to conform to acts Feb.
    14, 1903, and Mar. 4, 1913.

    ADMINISTRATIVE DELEGATION OF FUNCTIONS BY SECRETARY OF THE TREASURY
      Administrative delegation of functions by Secretary of the
    Treasury, see note set out preceding section 3 of this Appendix.

-FOOTNOTE-
    (!1) See References in Text note below.

-End-

-CITE-
    46 USC APPENDIX Sec. 321                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 12 - REGULATION OF VESSELS IN DOMESTIC COMMERCE

-HEAD-
    Sec. 321. Penalty for illegal enrollment or license

-STATUTE-
      Every collector, who knowingly makes any record of enrollment or
    license of any vessel, and every other officer, or person,
    appointed by or under them, who makes any record, or grants any
    certificate or other document whatever, contrary to the true intent
    and meaning of title 50 of the Revised Statutes, or takes any other
    or greater fees than are by title 50 of the Revised Statutes
    allowed, or receives for any service performed pursuant to title 50
    of the Revised Statutes, any reward or gratuity, and every
    surveyor, or other person appointed to measure vessels, who
    willfully delivers to any collector or such officer or employee as
    the Secretary of the Treasury shall designate a false description
    of any vessel, to be enrolled or licensed, in pursuance of title 50
    of the Revised Statutes, shall be liable to a penalty of $500, and
    be rendered incapable of serving in any office of trust or profit
    under the United States.

-SOURCE-
    (R.S. Sec. 4373; June 17, 1930, ch. 497, title IV, Sec. 523, 46
    Stat. 740; Aug. 8, 1953, ch. 397, Sec. 2(d), 67 Stat. 508.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Title 50 of the Revised Statutes, referred to in text, was in the
    original "this Title", meaning title 50 of the Revised Statutes,
    consisting of R.S. Secs. 4311 to 4390. For complete classification
    of R.S. Secs. 4311 to 4390 to the Code, see Tables.

-COD-
                               CODIFICATION                           
      R.S. 4373 derived from act Feb. 18, 1793, ch. 8, Sec. 29, 1 Stat.
    315.

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      All offices of collector of customs, comptroller of customs,
    surveyor of customs, and appraiser of merchandise in Bureau of
    Customs of Department of the Treasury to which appointments were
    required to be made by President with advice and consent of Senate
    ordered abolished with such offices to be terminated not later than
    Dec. 31, 1966, by Reorg. Plan No. 1 of 1965, eff. May 25, 1965, 30
    F.R. 7035, 79 Stat. 1317, set out in the Appendix to Title 5,
    Government Organization and Employees. All functions of offices
    eliminated were already vested in Secretary of the Treasury by
    Reorg. Plan No. 26 of 1950, eff. July 31, 1950, 15 F.R. 4935, 64
    Stat. 1280, set out in the Appendix to Title 5.
      Upon incorporation into the Code, "comptroller of customs"
    substituted for "naval officer" to conform to act Sept. 21, 1922,
    ch. 356, Sec. 523, 42 Stat. 974, which was repealed by section
    651(a)(1) of act June 17, 1930. Section 523 of act June 17, 1930,
    classified to section 1523 of Title 19, Customs Duties, continued
    naval officers of customs as comptrollers of customs. Section 523
    of act June 17, 1930, was amended by act Aug. 8, 1953, which
    omitted references to comptrollers of customs and substituted
    reference to Secretary of the Treasury or such officer or employee
    as he shall designate. The words "such officer or employee as the
    Secretary of the Treasury shall designate" were substituted for
    "comptrollers of customs" to reflect such change.

-End-

-CITE-
    46 USC APPENDIX Sec. 322                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 12 - REGULATION OF VESSELS IN DOMESTIC COMMERCE

-HEAD-
    Sec. 322. Penalty for malfeasance

-STATUTE-
      Every person, authorized and required by title 50 of the Revised
    Statutes to perform any act or thing as an officer, who willfully
    neglects or refuses to do and perform the same, according to the
    true intent and meaning of title 50 of the Revised Statutes, shall,
    if not subject to the penalty and disqualifications prescribed in
    section 321 of this Appendix, be liable to a penalty of $500 for
    the first offense, and of like sum for the second offense, and
    shall, after conviction for the second offense, be rendered
    incapable of holding any office of trust or profit under the United
    States.

-SOURCE-
    (R.S. Sec. 4374.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Title 50 of the Revised Statutes, referred to in text, was in the
    original "this Title", meaning title 50 of the Revised Statutes,
    consisting of R.S. Secs. 4311 to 4390. For complete classification
    of R.S. Secs. 4311 to 4390 to the Code, see Tables.

-COD-
                               CODIFICATION                           
      R.S. Sec. 4374 derived from act Feb. 18, 1793, ch. 8, Sec. 29, 1
    Stat. 315.

-End-

-CITE-
    46 USC APPENDIX Sec. 323                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 12 - REGULATION OF VESSELS IN DOMESTIC COMMERCE

-HEAD-
    Sec. 323. Penalty for forgery and alteration

-STATUTE-
      Every person who forges, counterfeits, erases, alters, or
    falsifies any enrollment, license, certificate, permit, or other
    document, mentioned or required in title 50 of the Revised
    Statutes, to be granted by any officer of the revenue, such person,
    so offending, shall be liable to a penalty of $500.

-SOURCE-
    (R.S. Sec. 4375.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Title 50 of the Revised Statutes, referred to in text, was in the
    original "this Title", meaning title 50 of the Revised Statutes,
    consisting of R.S. Secs. 4311 to 4390. For complete classification
    of R.S. Secs. 4311 to 4390 to the Code, see Tables.

-COD-
                               CODIFICATION                           
      R.S. Sec. 4375 derived from act Feb. 18, 1793, ch. 8, Sec. 30, 1
    Stat. 316.

-End-

-CITE-
    46 USC APPENDIX Sec. 324                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 12 - REGULATION OF VESSELS IN DOMESTIC COMMERCE

-HEAD-
    Sec. 324. Penalty for obstructing officers

-STATUTE-
      Every person who assaults, resists, obstructs, or hinders any
    officer in the execution of any Act or law relating to the
    enrollment, registry, or licensing of vessels, or of title 50 of
    the Revised Statutes, or of any of the powers or authorities vested
    in him by any such Act or law, shall, for every such offense, for
    which no other penalty is particularly provided, be liable to a
    penalty of $500.

-SOURCE-
    (R.S. Sec. 4376.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Title 50 of the Revised Statutes, referred to in text, was in the
    original "this Title", meaning title 50 of the Revised Statutes,
    consisting of R.S. Secs. 4311 to 4390. For complete classification
    of R.S. Secs. 4311 to 4390 to the Code, see Tables.

-COD-
                               CODIFICATION                           
      R.S. Sec. 4376 derived from act Feb. 18, 1793, ch. 8, Sec. 31, 1
    Stat. 316.

-End-

-CITE-
    46 USC APPENDIX Sec. 326                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 12 - REGULATION OF VESSELS IN DOMESTIC COMMERCE

-HEAD-
    Sec. 326. Exemption from forfeiture

-STATUTE-
      Any merchandise on board any vessel which belongs, in good faith,
    to any person other than the master, owner, or mariners of such
    vessel, and upon which the duties have been paid, or secured
    according to law, shall be exempted from any forfeiture under title
    50 of the Revised Statutes.

-SOURCE-
    (R.S. Sec. 4378.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Title 50 of the Revised Statutes, referred to in text, was in the
    original "this Title", meaning title 50 of the Revised Statutes,
    consisting of R.S. Secs. 4311 to 4390. For complete classification
    of R.S. Secs. 4311 to 4390 to the Code, see Tables.

-COD-
                               CODIFICATION                           
      R.S. Sec. 4378 derived from act Feb. 18, 1793, ch. 8, Sec. 33, 1
    Stat. 316.

-End-

-CITE-
    46 USC APPENDIX Sec. 327                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 12 - REGULATION OF VESSELS IN DOMESTIC COMMERCE

-HEAD-
    Sec. 327. Notice of seizure

-STATUTE-
      In every case where a forfeiture of any vessel or merchandise
    shall accrue, it shall be the duty of the collector or other proper
    officer, who shall give notice of the seizure of such vessel or of
    such merchandise, to insert in the same advertisement the name and
    the place of residence of the person to whom any such vessel and
    merchandise belonged or were consigned, at the time of such
    seizure, if the same be known to him.

-SOURCE-
    (R.S. Sec. 4379.)

-COD-
                               CODIFICATION                           
      R.S. Sec. 4379 derived from act Feb. 18, 1793, ch. 8, Sec. 28, 1
    Stat. 315.

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      All offices of collector of customs, comptroller of customs,
    surveyor of customs, and appraiser of merchandise in Bureau of
    Customs of Department of the Treasury to which appointments were
    required to be made by President with advice and consent of Senate
    ordered abolished with such offices to be terminated not later than
    Dec. 31, 1966, by Reorg. Plan No. 1 of 1965, eff. May 25, 1965, 30
    F.R. 7035, 79 Stat. 1317, set out in the Appendix to Title 5,
    Government Organization and Employees. All functions of offices
    eliminated were already vested in Secretary of the Treasury by
    Reorg. Plan No. 26 of 1950, eff. July 31, 1950, 15 F.R. 4935, 64
    Stat. 1280, set out in the Appendix to Title 5.

-End-

-CITE-
    46 USC APPENDIX Sec. 328                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 12 - REGULATION OF VESSELS IN DOMESTIC COMMERCE

-HEAD-
    Sec. 328. Recovery of forfeitures and penalties

-STATUTE-
      All penalties and forfeitures which shall be incurred by virtue
    of title 50 of the Revised Statutes may be sued for, prosecuted,
    and recovered as penalties and forfeitures incurred by virtue of
    the laws relating to the collection of duties, and shall be
    appropriated in like manner; except when otherwise expressly
    prescribed.

-SOURCE-
    (R.S. Sec. 4380.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Title 50 of the Revised Statutes, referred to in text, was in the
    original "this Title", meaning title 50 of the Revised Statutes,
    consisting of R.S. Secs. 4311 to 4390. For complete classification
    of R.S. Secs. 4311 to 4390 to the Code, see Tables.

-COD-
                               CODIFICATION                           
      R.S. Sec. 4380 derived from act Feb. 18, 1793, ch. 8, Sec. 35, 1
    Stat. 317.

-End-

-CITE-
    46 USC APPENDIX Sec. 336                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 12 - REGULATION OF VESSELS IN DOMESTIC COMMERCE

-HEAD-
    Sec. 336. Canal boats exempt from enrollment, license, and customs
      fees

-STATUTE-
      The act to which this is a supplement shall not be so construed
    as to extend the provisions of the said act to canal boats or boats
    employed on the internal waters or canals of any State; and all
    such boats, excepting only such as are provided with sails or
    propelling machinery of their own adapted to lake or coastwise
    navigation, and excepting such as are employed in trade with the
    Canadas, shall be exempt from the provisions of the said act, and
    from the payment of all customs and other fees under any act of
    Congress.

-SOURCE-
    (Apr. 18, 1874, ch. 110, 18 Stat. 31.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The act to which this is a supplement, and the said act, referred
    to in text, mean act Feb. 18, 1793, ch. 8, 1 Stat. 305, entitled
    "An Act for enrolling and licensing ships or vessels to be employed
    in the coasting trade and fisheries, and for regulating the same",
    which was incorporated into the Revised Statutes of 1878 as R.S.
    Secs. 919, 923, 938, 941, 4311, 4312, 4319 to 4327, 4331 to 4338,
    4349 to 4356, 4359 to 4369, 4371 to 4381, 4383, and 4385. For
    complete classification of such sections of the Revised Statutes to
    the Code, see Tables.

-End-

-CITE-
    46 USC APPENDIX CHAPTER 13 - PASSPORTS AND
           PAPERS OF VESSELS ENGAGED IN FOREIGN
           COMMERCE                                        01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 13 - PASSPORTS AND PAPERS OF VESSELS ENGAGED IN FOREIGN
                  COMMERCE                        

-HEAD-
      CHAPTER 13 - PASSPORTS AND PAPERS OF VESSELS ENGAGED IN FOREIGN
                                 COMMERCE

-MISC1-
    Sec.                                                     
    354.        Deposit of ship's papers with consul.                 
    355.        Penalty for failure.                                  

-End-

-CITE-
    46 USC APPENDIX Sec. 354                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 13 - PASSPORTS AND PAPERS OF VESSELS ENGAGED IN FOREIGN
                  COMMERCE                        

-HEAD-
    Sec. 354. Deposit of ship's papers with consul

-STATUTE-
      Every master of a vessel, belonging to citizens of the United
    States, who shall sail from any port of the United States, shall,
    on his arrival at a foreign port, deposit his register, with the
    consul or vice consul, if any there be at such port; and it shall
    be the duty of such consul or vice consul, on such master or
    commander producing to him a clearance from the proper officer of
    the port where his vessel may be, to deliver to the master all of
    his papers, if such master or commander has complied with the
    provisions of law relating to the discharge of seamen in a foreign
    country, and to the payment of the fees of consular officers.

-SOURCE-
    (R.S. Sec. 4309; Apr. 5, 1906, ch. 1366, Sec. 3, 34 Stat. 100.)

-COD-
                               CODIFICATION                           
      R.S. Sec. 4309 derived from act Feb. 28, 1803, ch. 9, Sec. 2, 2
    Stat. 203.
      Reference to "commercial agent, or vice-commercial agent" was
    omitted in view of the abolition of the grade of commercial agent
    by act Apr. 5, 1906.
      As originally enacted, this section also required the deposit of
    sea-letters and Mediterranean passports. The use of such documents
    was discontinued by Presidential proclamation on Apr. 10, 1815.

-End-

-CITE-
    46 USC APPENDIX Sec. 355                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 13 - PASSPORTS AND PAPERS OF VESSELS ENGAGED IN FOREIGN
                  COMMERCE                        

-HEAD-
    Sec. 355. Penalty for failure

-STATUTE-
      Every master of any such vessel who refuses or neglects to
    deposit the papers as required by section 354 of this Appendix,
    shall be liable to a penalty of $500, to be recovered by such
    consul or vice consul, in his own name, for the benefit of the
    United States, in any court of competent jurisdiction.

-SOURCE-
    (R.S. Sec. 4310; Apr. 5, 1906, ch. 1366, Sec. 3, 34 Stat. 100.)

-COD-
                               CODIFICATION                           
      R.S. Sec. 4310 derived from act Feb. 28, 1803, ch. 9, Sec. 2, 2
    Stat. 203.
      Reference to "commercial agent, or vice-commercial agent" was
    omitted in view of the abolition of the grade of commercial agent
    by act Apr. 5, 1906.

-End-

-CITE-
    46 USC APPENDIX CHAPTER 14 - INSPECTION OF STEAM
           VESSELS                                         01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 14 - INSPECTION OF STEAM VESSELS

-HEAD-
                 CHAPTER 14 - INSPECTION OF STEAM VESSELS             

-MISC1-
              SUBCHAPTER VII - OCEANOGRAPHIC RESEARCH VESSELS          
    Sec.                                                     
    441.        Exemption of oceanographic research vessels from
                 inspection laws; definitions.                        
    443.        Vessel not engaged in trade or commerce.              
    444.        Scientific personnel not considered seamen.           

                 SUBCHAPTER VIII - SAILING SCHOOL VESSELS             
    446.        Sailing school students and sailing school instructors
                 without seamen status under steam-vessel and merchant
                 seamen provisions or maritime law doctrines.         
    446a.       Financial responsibility; minimum amount; evidence.   
    446b.       Sailing school vessel without status of merchant
                 vessel or vessel engaged in trade or commerce.       
    446c.       Definitions.                                          

-End-

-CITE-
    46 USC APPENDIX SUBCHAPTER VII - OCEANOGRAPHIC
           RESEARCH VESSELS                                01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 14 - INSPECTION OF STEAM VESSELS
    SUBCHAPTER VII - OCEANOGRAPHIC RESEARCH VESSELS

-HEAD-
              SUBCHAPTER VII - OCEANOGRAPHIC RESEARCH VESSELS          

-End-

-CITE-
    46 USC APPENDIX Sec. 441                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 14 - INSPECTION OF STEAM VESSELS
    SUBCHAPTER VII - OCEANOGRAPHIC RESEARCH VESSELS

-HEAD-
    Sec. 441. Exemption of oceanographic research vessels from
      inspection laws; definitions

-STATUTE-
      As used in this subchapter - 
        (1) the term "oceanographic research vessel" means a vessel
      which the Secretary of the department in which the Coast Guard is
      operating finds is being employed exclusively in instruction in
      oceanography or limnology, or both, or exclusively in
      oceanographic research, including, but not limited to, such
      studies pertaining to the sea as seismic, gravity meter and
      magnetic exploration and other marine geophysical or geological
      surveys, atmospheric research, and biological research;
        (2) the term "scientific personnel" means persons who are
      aboard a vessel solely for the purpose of engaging in scientific
      research, instructing, or receiving instruction, in oceanography
      or limnology.

-SOURCE-
    (Pub. L. 89-99, Sec. 1, July 30, 1965, 79 Stat. 424.)

-STATAMEND-
                                RESTATEMENT                            
      Section was restated in part in section 2101(18), (31) of Title
    46, Shipping, as enacted by Pub. L. 98-89.

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      For transfer of authorities, functions, personnel, and assets of
    the Coast Guard, including the authorities and functions of the
    Secretary of Transportation relating thereto, to the Department of
    Homeland Security, and for treatment of related references, see
    sections 468(b), 551(d), 552(d), and 557 of Title 6, Domestic
    Security, and the Department of Homeland Security Reorganization
    Plan of November 25, 2002, as modified, set out as a note under
    section 542 of Title 6.
      Coast Guard transferred to Department of Transportation, and
    functions, powers, and duties relating to Coast Guard of Secretary
    of the Treasury and of other officers and offices of Department of
    the Treasury transferred to Secretary of Transportation by Pub. L.
    89-670, Sec. 6(b)(1), Oct. 15, 1966, 80 Stat. 938. Section 6(b)(2)
    of Pub. L. 89-670, however, provided that notwithstanding such
    transfer of functions, Coast Guard shall operate as part of Navy in
    time of war or when President directs as provided in section 3 of
    Title 14, Coast Guard. See section 108 of Title 49, Transportation.

-End-

-CITE-
    46 USC APPENDIX Sec. 443                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 14 - INSPECTION OF STEAM VESSELS
    SUBCHAPTER VII - OCEANOGRAPHIC RESEARCH VESSELS

-HEAD-
    Sec. 443. Vessel not engaged in trade or commerce

-STATUTE-
      An oceanographic research vessel shall not be deemed to be
    engaged in trade or commerce.

-SOURCE-
    (Pub. L. 89-99, Sec. 3, July 30, 1965, 79 Stat. 424.)

-End-

-CITE-
    46 USC APPENDIX Sec. 444                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 14 - INSPECTION OF STEAM VESSELS
    SUBCHAPTER VII - OCEANOGRAPHIC RESEARCH VESSELS

-HEAD-
    Sec. 444. Scientific personnel not considered seamen

-STATUTE-
      Scientific personnel on an oceanographic research vessel shall
    not be considered seamen under the provisions of title 53 of the
    Revised Statutes and Act (!1) amendatory thereof or supplementary
    thereto.

-SOURCE-
    (Pub. L. 89-99, Sec. 4, July 30, 1965, 79 Stat. 424.)

-STATAMEND-
                                RESTATEMENT                            
      Section was restated in part in section 8701(a)(5) of Title 46,
    Shipping, as enacted by Pub. L. 98-89.

-REFTEXT-
                            REFERENCES IN TEXT                        
      Title 53 of the Revised Statutes, referred to in text, consisted
    of R.S. Secs. 4501 to 4612, which were classified to sections 541
    to 543, 545 to 549, 561, 562, 564 to 571, 574 to 578, 591 to 597,
    600, 602 to 605, 621 to 628, 641 to 643, 644, 645, 651 to 660, 661
    to 669, 674 to 679, 681 to 687, 701 to 710, and 711 to 713 of
    former Title 46, Shipping. For complete classification of R.S.
    Secs. 4501 to 4612 to the Code, see Tables. A majority of such
    sections of the Revised Statutes were repealed and various
    provisions thereof were reenacted in Title 46, Shipping, by Pub. L.
    98-89, Aug. 26, 1983, 97 Stat. 500. For disposition of sections of
    former Title 46 into revised Title 46, see Table at beginning of
    Title 46.

-FOOTNOTE-
    (!1) So in original. Probably should be "Acts".

-End-

-CITE-
    46 USC APPENDIX SUBCHAPTER VIII - SAILING SCHOOL
           VESSELS                                         01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 14 - INSPECTION OF STEAM VESSELS
    SUBCHAPTER VIII - SAILING SCHOOL VESSELS

-HEAD-
                 SUBCHAPTER VIII - SAILING SCHOOL VESSELS             

-End-

-CITE-
    46 USC APPENDIX Sec. 446                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 14 - INSPECTION OF STEAM VESSELS
    SUBCHAPTER VIII - SAILING SCHOOL VESSELS

-HEAD-
    Sec. 446. Sailing school students and sailing school instructors
      without seamen status under steam-vessel and merchant seamen
      provisions or maritime law doctrines

-STATUTE-
      Sailing school students and sailing school instructors shall not
    be considered to be seamen under the provisions of titles 52 and 53
    of the Revised Statutes of the United States and any Act amendatory
    thereof or supplementary thereto, or for the purposes of the
    maritime law doctrines of maintenance and cure or warranty of
    seaworthiness.

-SOURCE-
    (Pub. L. 97-322, title II, Sec. 204, Oct. 15, 1982, 96 Stat. 1589.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Title 52 of the Revised Statutes, referred to in text, consisted
    of R.S. Secs. 4399 to 4500, which were classified to sections 170,
    214, 215, 222, 224, 224a, 226, 228, 229, 230 to 234, 239, 240, 361,
    362, 364, 371 to 373, 375 to 382, 384, 385, 391, 391a, 392 to 394,
    399 to 404, 405 to 416, 435 to 440, 451 to 453, 460, 461 to 463,
    464, 466, 467 to 482, and 489 to 498 of former Title 46, Shipping.
    For complete classification of R.S. Secs. 4399 to 4500 to the Code,
    see Tables. A majority of such sections of the Revised Statutes
    were repealed and various provisions thereof were reenacted in
    Title 46, Shipping, by Pub. L. 98-89, Aug. 26, 1983, 97 Stat. 500.
    For disposition of sections of former Title 46 into revised Title
    46, see Table at beginning of Title 46.
      Title 53 of the Revised Statutes, referred to in text, consisted
    of R.S. Secs. 4501 to 4612, which were classified to sections 541
    to 543, 545 to 549, 561, 562, 564 to 571, 574 to 578, 591 to 597,
    600, 602 to 605, 621 to 628, 641 to 643, 644, 645, 651 to 660, 661
    to 669, 674 to 679, 681 to 687, 701 to 710, and 711 to 713 of
    former Title 46, Shipping. For complete classification of R.S.
    Secs. 4501 to 4612 to the Code, see Tables. A majority of such
    sections of the Revised Statutes were repealed and various
    provisions thereof were reenacted in Title 46, Shipping, by Pub. L.
    98-89, Aug. 26, 1983, 97 Stat. 500. For disposition of sections of
    former Title 46 into revised Title 46, see Table at beginning of
    Title 46.

-MISC1-
                              EFFECTIVE DATE                          
      Section 208(b) of Pub. L. 97-322 provided that: "Sections 202,
    203, 204, 205, 206, and 207 of this title and the amendments made
    by such sections [enacting this subchapter and amending sections
    390 to 390d and 672 of former Title 46, Shipping] shall take effect
    eighteen months after the date of enactment of this Act [Oct. 15,
    1982] or on the date upon which the rules and regulations referred
    to in subsection (a) [section 446d of former Title 46] take effect,
    whichever is earlier."

                                SHORT TITLE                            
      Section 201 of title II of Pub. L. 97-322 provided that: "This
    title [enacting this subchapter, amending sections 390 to 390d and
    672 of former Title 46, Shipping, and enacting a provision set out
    as a note under this section] may be cited as the 'Sailing School
    Vessels Act of 1982'."

-End-

-CITE-
    46 USC APPENDIX Sec. 446a                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 14 - INSPECTION OF STEAM VESSELS
    SUBCHAPTER VIII - SAILING SCHOOL VESSELS

-HEAD-
    Sec. 446a. Financial responsibility; minimum amount; evidence

-STATUTE-
      Each owner or charterer of a sailing school vessel shall maintain
    evidence of his or her financial responsibility to meet any
    liability incurred for death or injury to sailing school students
    or sailing school instructors on voyages aboard the vessel, in an
    amount not less than $50,000 for each student or instructor. Such
    financial responsibility may be evidenced by policies of insurance
    or other adequate financial resources.

-SOURCE-
    (Pub. L. 97-322, title II, Sec. 205, Oct. 15, 1982, 96 Stat. 1589.)

-End-

-CITE-
    46 USC APPENDIX Sec. 446b                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 14 - INSPECTION OF STEAM VESSELS
    SUBCHAPTER VIII - SAILING SCHOOL VESSELS

-HEAD-
    Sec. 446b. Sailing school vessel without status of merchant vessel
      or vessel engaged in trade or commerce

-STATUTE-
      For the purposes of section 291 of this Appendix, section
    11101(a)-(c) of title 46, and section 883 of this Appendix, a
    sailing school vessel shall not be deemed to be a merchant vessel
    or a vessel engaged in trade or commerce.

-SOURCE-
    (Pub. L. 97-322, title II, Sec. 206, Oct. 15, 1982, 96 Stat. 1590;
    Pub. L. 98-557, Sec. 34(b), Oct. 30, 1984, 98 Stat. 2876.)

-MISC1-
                                AMENDMENTS                            
      1984 - Pub. L. 98-557 inserted reference to section 11101(a)-(c)
    of title 46.

-End-

-CITE-
    46 USC APPENDIX Sec. 446c                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 14 - INSPECTION OF STEAM VESSELS
    SUBCHAPTER VIII - SAILING SCHOOL VESSELS

-HEAD-
    Sec. 446c. Definitions

-STATUTE-
      For purposes of this subchapter, the terms "sailing school
    students", "sailing school instructor", and "sailing school vessel"
    have the meaning given such terms in section 2101 of title 46.

-SOURCE-
    (Pub. L. 97-322, title II, Sec. 207, Oct. 15, 1982, 96 Stat. 1590.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This subchapter, referred to in text, was in the original
    "sections 203, 204, 205, 206, and 208 of this title", meaning
    sections 203 to 206 and 208 of title II of Pub. L. 97-322, Oct. 15,
    1982, 96 Stat. 1589, 1590. Sections 204 to 206 of Pub. L. 97-322
    are classified to this subchapter. Sections 203 and 208 were
    classified to sections 672(b)(4) and 446d of former Title 46,
    Shipping, respectively, and were repealed by Pub. L. 98-89, Sec.
    4(b), Aug. 23, 1983, 97 Stat. 599, and reenacted by section 1
    thereof as sections 7311 and 8101(a) of Title 46, Shipping,
    respectively.

-COD-
                               CODIFICATION                           
      "Section 2101 of title 46" substituted in text for "the first
    section of the Act entitled 'An Act to require the inspection and
    certification of certain vessels carrying passengers', enacted May
    10, 1956 (46 U.S.C. 390) as amended by this title" on authority of
    Pub. L. 98-89, Sec. 2(b), Aug. 26, 1983, 97 Stat. 598, section 1 of
    which enacted Title 46, Shipping.

-End-

-CITE-
    46 USC APPENDIX CHAPTER 15 - TRANSPORTATION OF
           PASSENGERS AND MERCHANDISE BY STEAM
           VESSELS                                         01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 15 - TRANSPORTATION OF PASSENGERS AND MERCHANDISE BY STEAM
                  VESSELS                         

-HEAD-
    CHAPTER 15 - TRANSPORTATION OF PASSENGERS AND MERCHANDISE BY STEAM
                                  VESSELS

-MISC1-
    Sec.                                                     
    466c.       Export of horses.                                     
                  (a)  Restriction on export of horses.               
                  (b)  Granting of waivers.                           
                  (c)  Penalties.                                     
    491.        Liability of master and owners for damage to
                 passengers.                                          

-End-

-CITE-
    46 USC APPENDIX Sec. 466c                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 15 - TRANSPORTATION OF PASSENGERS AND MERCHANDISE BY STEAM
                  VESSELS                         

-HEAD-
    Sec. 466c. Export of horses

-STATUTE-
    (a) Restriction on export of horses
      Notwithstanding any other provision of law, no horse may be
    exported by sea from the United States, or any of its territories
    or possessions, unless such horse is part of a consignment of
    horses with respect to which a waiver has been granted under
    subsection (b) of this section.
    (b) Granting of waivers
      The Secretary of Commerce, in consultation with the Secretary of
    Agriculture, may issue regulations providing for the granting of
    waivers permitting the export by sea of a specified consignment of
    horses, if the Secretary of Commerce, in consultation with the
    Secretary of Agriculture, determines that no horse in that
    consignment is being exported for purposes of slaughter.
    (c) Penalties
      (1) Criminal penalty
        Any person who knowingly violates this section or any
      regulation, order, or license issued under this section shall be
      fined not more than 5 times the value of the consignment of
      horses involved or $50,000, whichever is greater, or imprisoned
      not more than 5 years, or both.
      (2) Civil penalty
        The Secretary of Commerce, after providing notice and an
      opportunity for an agency hearing on the record, may impose a
      civil penalty of not to exceed $10,000 for each violation of this
      section or any regulation, order, or license issued under this
      section, either in addition to or in lieu of any other liability
      or penalty which may be imposed.

-SOURCE-
    (Mar. 3, 1891, ch. 521, Sec. 3, as added Pub. L. 99-64, title I,
    Sec. 125, July 12, 1985, 99 Stat. 156.)

-MISC1-
                             PRIOR PROVISIONS                         
      Provisions similar to those in this section were contained in
    section 7(j) of the Export Administration Act of 1979, section
    2406(j) of Title 50, Appendix, War and National Defense, prior to
    the amendment of that Act by the Export Administration Amendments
    Act of 1985, Pub. L. 99-64, which enacted this section.

-End-

-CITE-
    46 USC APPENDIX Sec. 491                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 15 - TRANSPORTATION OF PASSENGERS AND MERCHANDISE BY STEAM
                  VESSELS                         

-HEAD-
    Sec. 491. Liability of master and owners for damage to passengers

-STATUTE-
      Whenever damage is sustained by any passenger or his baggage,
    from explosion, fire, collision, or other cause, the master and the
    owner of such vessel, or either of them, and the vessel shall be
    liable to each and every person so injured, to the full amount of
    damage if it happens through any neglect or failure to comply with
    the provisions of title 52 of the Revised Statutes, or through
    known defects or imperfections of the steaming apparatus or of the
    hull; and any person sustaining loss or injury through the
    carelessness, negligence, or willful misconduct of any master,
    mate, engineer, or pilot, or his neglect or refusal to obey the
    laws governing the navigation of such steamers, may sue such
    master, mate, engineer, or pilot, and recover damages for any such
    injury caused by any such master, mate, engineer, or pilot.

-SOURCE-
    (R.S. Sec. 4493.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Title 52 of the Revised Statutes, referred to in text, was in the
    original "this Title", meaning title 52 of the Revised Statutes,
    consisting of R.S. Secs. 4399 to 4500, which were classified to
    sections 170, 214, 215, 222, 224, 224a, 226, 228, 229, 230 to 234,
    239, 240, 361, 362, 364, 371 to 373, 375 to 382, 384, 385, 391,
    391a, 392 to 394, 399 to 404, 405 to 416, 435 to 440, 451 to 453,
    460, 461 to 463, 464, 466, 467 to 482, and 489 to 498 of former
    Title 46, Shipping. For complete classification of R.S. Secs. 4399
    to 4500 to the Code, see Tables. A majority of such sections of the
    Revised Statutes were repealed and various provisions thereof were
    reenacted in Title 46, Shipping, by Pub. L. 98-89, Aug. 26, 1983,
    97 Stat. 500. For disposition of sections of former Title 46 into
    revised Title 46, see Table at beginning of Title 46.

-COD-
                               CODIFICATION                           
      R.S. Sec. 4493 derived from act Feb. 28, 1871, ch. 100, Sec. 43,
    16 Stat. 453.

-End-

-CITE-
    46 USC APPENDIX CHAPTER 18 - MERCHANT SEAMEN                01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 18 - MERCHANT SEAMEN

-HEAD-
                       CHAPTER 18 - MERCHANT SEAMEN                   

-MISC1-
                  SUBCHAPTER VII - PROTECTION AND RELIEF              
    Sec.                                                     
    688.        Recovery for injury to or death of seaman.            
                  (a)  Application of railway employee statutes;
                        jurisdiction.                                 
                  (b)  Limitation for certain aliens; applicability in
                        lieu of other remedy.                         

-End-

-CITE-
    46 USC APPENDIX SUBCHAPTER VII - PROTECTION AND
           RELIEF                                          01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 18 - MERCHANT SEAMEN
    SUBCHAPTER VII - PROTECTION AND RELIEF

-HEAD-
                  SUBCHAPTER VII - PROTECTION AND RELIEF              

-End-

-CITE-
    46 USC APPENDIX Sec. 688                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 18 - MERCHANT SEAMEN
    SUBCHAPTER VII - PROTECTION AND RELIEF

-HEAD-
    Sec. 688. Recovery for injury to or death of seaman

-STATUTE-
    (a) Application of railway employee statutes; jurisdiction
      Any seaman who shall suffer personal injury in the course of his
    employment may, at his election, maintain an action for damages at
    law, with the right of trial by jury, and in such action all
    statutes of the United States modifying or extending the common-law
    right or remedy in cases of personal injury to railway employees
    shall apply; and in case of the death of any seaman as a result of
    any such personal injury the personal representative of such seaman
    may maintain an action for damages at law with the right of trial
    by jury, and in such action all statutes of the United States
    conferring or regulating the right of action for death in the case
    of railway employees shall be applicable. Jurisdiction in such
    actions shall be under the court of the district in which the
    defendant employer resides or in which his principal office is
    located.
    (b) Limitation for certain aliens; applicability in lieu of other
      remedy
      (1) No action may be maintained under subsection (a) of this
    section or under any other maritime law of the United States for
    maintenance and cure or for damages for the injury or death of a
    person who was not a citizen or permanent resident alien of the
    United States at the time of the incident giving rise to the action
    if the incident occurred - 
        (A) while that person was in the employ of an enterprise
      engaged in the exploration, development, or production of
      offshore mineral or energy resources - including but not limited
      to drilling, mapping, surveying, diving, pipelaying, maintaining,
      repairing, constructing, or transporting supplies, equipment or
      personnel, but not including transporting those resources by (a)
      (!1) vessel constructed or adapted primarily to carry oil in bulk
      in the cargo spaces; and

        (B) in the territorial waters or waters overlaying the
      continental shelf of a nation other than the United States, its
      territories, or possessions. As used in this paragraph, the term
      "continental shelf" has the meaning stated in article I of the
      1958 Convention on the Continental Shelf.

      (2) The provisions of paragraph (1) of this subsection shall not
    be applicable if the person bringing the action establishes that no
    remedy was available to that person - 
        (A) under the laws of the nation asserting jurisdiction over
      the area in which the incident occurred; or
        (B) under the laws of the nation in which, at the time of the
      incident, the person for whose injury or death a remedy is sought
      maintained citizenship or residency.

-SOURCE-
    (Mar. 4, 1915, ch. 153, Sec. 20, 38 Stat. 1185; June 5, 1920, ch.
    250, Sec. 33, 41 Stat. 1007; Pub. L. 97-389, title V, Sec. 503(a),
    Dec. 29, 1982, 96 Stat. 1955.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      "Statutes of the United States modifying or extending the common-
    law right or remedy in cases of personal injury, to railway
    employees" and "statutes of the United States conferring or
    regulating the right of action for death in the case of railway
    employees", referred to in subsec. (a), probably mean acts June 11,
    1906, ch. 3073, 34 Stat. 232; Apr. 22, 1908, ch. 149, 35 Stat. 65;
    Apr. 5, 1910, ch. 143, 36 Stat. 291; and Aug. 11, 1939, ch. 685, 53
    Stat. 1404, popularly known as the Employers' Liability Acts. Act
    Apr. 22, 1908, ch. 149, 35 Stat. 65, is classified generally to
    chapter 2 (Sec. 51 et seq.) of Title 45, Railroads. For complete
    classification of acts Apr. 22, 1908, Apr. 5, 1910, and Aug. 11,
    1939 to the Code, see Short Title note set out under section 51 of
    Title 45 and Tables.
      The 1958 Convention on the Continental Shelf, referred to in
    subsec. (b)(1)(B), was done at Geneva, April 29, 1958, and entered
    into force for the United States, June 10, 1964. See 15 UST 471;
    TIAS 5578.

-MISC1-
                                AMENDMENTS                            
      1982 - Pub. L. 97-389 designated existing provisions as subsec.
    (a) and added subsec. (b).
      1920 - Act June 5, 1920, amended section generally. Prior to
    amendment, section read as follows: "In any suit to recover damages
    for any injury sustained on board vessel or in its service seamen
    having command shall not be held to be fellow-servants with those
    under their authority."

                     EFFECTIVE DATE OF 1982 AMENDMENT                 
      Section 503(b) of Pub. L. 97-389 provided that: "The amendment
    made by this section [amending this section] does not apply to any
    action arising out of an incident that occurred before the date of
    enactment of this section [Dec. 29, 1982]."

-FOOTNOTE-
    (!1) So in original. Probably should be "a".

-End-

-CITE-
    46 USC APPENDIX CHAPTER 19 - WRECKS AND SALVAGE             01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 19 - WRECKS AND SALVAGE

-HEAD-
                      CHAPTER 19 - WRECKS AND SALVAGE                  

-MISC1-
                         SUBCHAPTER I - GENERALLY                     
    Sec.                                                     
    721.        Vessels stranded on foreign coasts.                   
    722.        Property wrecked on Florida coast.                    
    723.        Forfeitures for taking wrecked property to foreign
                 ports.                                               
    724.        License to wreckers on Florida coast.                 
    725.        Canadian vessels aiding vessels wrecked or disabled in
                 United States waters.                                
    726.        International agreement as to derelicts.              
    727.        Right to salvage not affected by ownership of vessel. 
    729.        Salvors of life to share in remuneration.             
    730.        Time limit for salvage suits.                         
    731.        Applicability to ships of war.                        

                    SUBCHAPTER III - ICE AND DERELICTS                
    738.        International agreements as to ice patrol and derelict
                 destruction; allocation of expenses.                 
    738a.       Patrol services.                                      
                  (a)  Maintenance of ice patrol; aid to ships in
                        distress; destruction of derelicts.           
                  (b)  Warning to vessels.                            
                  (c)  Report on ships in dangerous regions.          
                  (d)  Administration by Coast Guard.                 
                  (e)  Annual report.                                 
    738c.       Speed of vessel in ice region; penalty.               

-End-

-CITE-
    46 USC APPENDIX SUBCHAPTER I - GENERALLY                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 19 - WRECKS AND SALVAGE
    SUBCHAPTER I - GENERALLY

-HEAD-
                         SUBCHAPTER I - GENERALLY                     

-End-

-CITE-
    46 USC APPENDIX Sec. 721                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 19 - WRECKS AND SALVAGE
    SUBCHAPTER I - GENERALLY

-HEAD-
    Sec. 721. Vessels stranded on foreign coasts

-STATUTE-
      Consuls and vice consuls, in cases where vessels of the United
    States are stranded on the coasts of their consulates respectively,
    shall, as far as the laws of the country will permit, take proper
    measures, as well for the purpose of saving the vessels, their
    cargoes and appurtenances, as for storing and securing the effects
    and merchandise saved, and for taking inventories thereof; and the
    merchandise and effects saved, with the inventories thereof so
    taken, shall, after deducting therefrom the expenses, be delivered
    to the owners. No consul or vice consul shall have authority to
    take possession of any such merchandise, or other property, when
    the master, owner, or consignee thereof is present or capable of
    taking possession of the same.

-SOURCE-
    (R.S. Sec. 4238.)

-COD-
                               CODIFICATION                           
      R.S. Sec. 4238 derived from act Apr. 14, 1792, ch. 24, Sec. 3, 1
    Stat. 255.

-End-

-CITE-
    46 USC APPENDIX Sec. 722                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 19 - WRECKS AND SALVAGE
    SUBCHAPTER I - GENERALLY

-HEAD-
    Sec. 722. Property wrecked on Florida coast

-STATUTE-
      All property, of any description whatsoever, which shall be taken
    from any wreck, from the sea, or from any of the keys and shoals,
    within the jurisdiction of the United States, on the coast of
    Florida, shall be brought to some port of entry within the
    jurisdiction of the United States.

-SOURCE-
    (R.S. Sec. 4239.)

-COD-
                               CODIFICATION                           
      R.S. Sec. 4239 derived from act Mar. 3, 1825, ch. 107, Sec. 2, 4
    Stat. 133.

-End-

-CITE-
    46 USC APPENDIX Sec. 723                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 19 - WRECKS AND SALVAGE
    SUBCHAPTER I - GENERALLY

-HEAD-
    Sec. 723. Forfeitures for taking wrecked property to foreign ports

-STATUTE-
      Every vessel which shall be engaged or employed in carrying or
    transporting any property whatsoever, taken from any wreck, from
    the sea, or from any of the keys or shoals, within the jurisdiction
    of the United States, on the coast of Florida, to any foreign port,
    shall, together with her tackle, apparel, and furniture, be
    forfeited, and all forfeitures incurred by virtue of this section
    shall accrue, one moiety to the informer and the other to the
    United States.

-SOURCE-
    (R.S. Sec. 4240.)

-COD-
                               CODIFICATION                           
      R.S. Sec. 4240 derived from act Mar. 3, 1825, ch. 107, Sec. 1, 4
    Stat. 132.

-End-

-CITE-
    46 USC APPENDIX Sec. 724                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 19 - WRECKS AND SALVAGE
    SUBCHAPTER I - GENERALLY

-HEAD-
    Sec. 724. License to wreckers on Florida coast

-STATUTE-
      No vessel, or master thereof, shall be regularly employed in the
    business of wrecking on the coast of Florida without the license of
    the judge of the district court for the district of Florida; and,
    before licensing any vessel or master, the judge shall be satisfied
    that the vessel is seaworthy, and properly and sufficiently fitted
    and equipped for the business or saving property shipwrecked and in
    distress; and that the master thereof is trustworthy, and innocent
    of any fraud or misconduct in relation to any property shipwrecked
    or saved on the coast.

-SOURCE-
    (R.S. Sec. 4241.)

-COD-
                               CODIFICATION                           
      R.S. Sec. 4241 derived from act Feb. 23, 1847, ch. 20, Sec. 3, 9
    Stat. 131.

-MISC1-
             DIVISION OF FLORIDA INTO THREE JUDICIAL DISTRICTS         
      Florida divided into three judicial districts, see section 89 of
    Title 28, Judiciary and Judicial Procedure.

-End-

-CITE-
    46 USC APPENDIX Sec. 725                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 19 - WRECKS AND SALVAGE
    SUBCHAPTER I - GENERALLY

-HEAD-
    Sec. 725. Canadian vessels aiding vessels wrecked or disabled in
      United States waters

-STATUTE-
      Canadian vessels and wrecking appurtenance may render aid and
    assistance to Canadian or other vessels and property wrecked,
    disabled, or in distress in the waters of the United States
    contiguous to the Dominion of Canada.
      This section shall be construed to apply to the canal and
    improvement of the waters between Lake Erie and Lake Huron, and to
    the waters of the Saint Mary's River and canal: And provided
    further, That this section shall cease to be in force from and
    after the date of the proclamation of the President of the United
    States to the effect that said reciprocal privilege has been
    withdrawn, revoked, or rendered inoperative by the said Government
    of the Dominion of Canada.

-SOURCE-
    (June 19, 1878, ch. 324, 20 Stat. 175; May 24, 1890, ch. 292, 26
    Stat. 120; Mar. 3, 1893, ch. 211, Sec. 1, 27 Stat. 683.)

-COD-
                               CODIFICATION                           
      Act June 19, 1878, was entitled "An act to aid vessels wrecked or
    disabled in the waters coterminous to the United States and the
    Dominion of Canada."
      As originally enacted, it read: "That Canadian vessels of all
    descriptions may render aid or assistance to Canadian or other
    vessels wrecked or disabled in the waters of the United States
    contiguous to the Dominion of Canada: Provided, That this act shall
    not take effect until proclamation by the President declaring that
    the privilege of aiding American or other vessels wrecked or
    disabled in Canadian waters contiguous to the United States has
    been extended by the Government of the Dominion of Canada and
    declaring this act to be in force: And provided further, That this
    act shall cease to be in force from and after the date of
    proclamation by the President to the effect that said reciprocal
    privilege has been withdrawn or revoked by said Government of the
    Dominion of Canada."
      Act May 24, 1890, amended act June 19, 1878, to read as above set
    forth, except that, besides making the act applicable to the canal
    and improvement of the waters between Lake Erie and Lake Huron,
    etc., it was also made applicable to the Welland Canal, and the
    first paragraph contained a proviso concerning the taking effect of
    the act.
      Act Mar. 3, 1893, struck out the provision relating to the
    Welland Canal.

-End-

-CITE-
    46 USC APPENDIX Sec. 726                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 19 - WRECKS AND SALVAGE
    SUBCHAPTER I - GENERALLY

-HEAD-
    Sec. 726. International agreement as to derelicts

-STATUTE-
      The President of the United States is authorized to make with the
    several Governments interested in the navigation of the North
    Atlantic Ocean, an international agreement providing for the
    reporting, marking, and removal of dangerous wrecks, derelicts, and
    other menaces to navigation in the North Atlantic Ocean outside the
    coast waters of the respective countries bordering thereon.

-SOURCE-
    (Oct. 31, 1893, No. 13, 28 Stat. 13.)

-End-

-CITE-
    46 USC APPENDIX Sec. 727                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 19 - WRECKS AND SALVAGE
    SUBCHAPTER I - GENERALLY

-HEAD-
    Sec. 727. Right to salvage not affected by ownership of vessel

-STATUTE-
      The right to remuneration for assistance or salvage services
    shall not be affected by common ownership of the vessels rendering
    and receiving such assistance or salvage services.

-SOURCE-
    (Aug. 1, 1912, ch. 268, Sec. 1, 37 Stat. 242.)

-MISC1-
                              EFFECTIVE DATE                          
      Section 6 of act Aug. 1, 1912, provided that the act [enacting
    sections 727 to 731 of this Appendix] shall take effect on and
    after July 1, 1912.

-End-

-CITE-
    46 USC APPENDIX Sec. 729                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 19 - WRECKS AND SALVAGE
    SUBCHAPTER I - GENERALLY

-HEAD-
    Sec. 729. Salvors of life to share in remuneration

-STATUTE-
      Salvors of human life, who have taken part in the services
    rendered on the occasion of the accident giving rise to salvage,
    are entitled to a fair share of the payment awarded to the salvor
    for salving the vessel or other property or preventing or
    minimizing damage to the environment.

-SOURCE-
    (Aug. 1, 1912, ch. 268, Sec. 3, 37 Stat. 242; Pub. L. 102-241, Sec.
    40(a), Dec. 19, 1991, 105 Stat. 2225.)

-MISC1-
                                AMENDMENTS                            
      1991 - Pub. L. 102-241 substituted "payment awarded to the salvor
    for salving the vessel or other property or preventing or
    minimizing damage to the environment" for "remuneration awarded to
    the salvors of the vessel, her cargo, and accessories".

-End-

-CITE-
    46 USC APPENDIX Sec. 730                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 19 - WRECKS AND SALVAGE
    SUBCHAPTER I - GENERALLY

-HEAD-
    Sec. 730. Time limit for salvage suits

-STATUTE-
      A suit for the recovery of remuneration for rendering assistance
    or salvage services shall not be maintainable if brought later than
    two years from the date when such assistance or salvage was
    rendered, unless the court in which the suit is brought shall be
    satisfied that during such period there had not been any reasonable
    opportunity of arresting the assisted or salved vessel within the
    jurisdiction of the court or within the territorial waters of the
    country in which the libelant resides or has his principal place of
    business.

-SOURCE-
    (Aug. 1, 1912, ch. 268, Sec. 4, 37 Stat. 242.)

-End-

-CITE-
    46 USC APPENDIX Sec. 731                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 19 - WRECKS AND SALVAGE
    SUBCHAPTER I - GENERALLY

-HEAD-
    Sec. 731. Applicability to ships of war

-STATUTE-
      Nothing in sections 727, 729, and 730 of this Appendix and
    section 2304 of title 46 shall be construed as applying to ships of
    war or to Government ships appropriated exclusively to a public
    service.

-SOURCE-
    (Aug. 1, 1912, ch. 268, Sec. 5, 37 Stat. 242; Pub. L. 102-241, Sec.
    40(b), Dec. 19, 1991, 105 Stat. 2225.)

-MISC1-
                                AMENDMENTS                            
      1991 - Pub. L. 102-241 substituted "Nothing in sections 727, 729,
    and 730 of this Appendix and section 2304 of title 46" for "Nothing
    in this Act".

-End-

-CITE-
    46 USC APPENDIX SUBCHAPTER III - ICE AND
           DERELICTS                                       01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 19 - WRECKS AND SALVAGE
    SUBCHAPTER III - ICE AND DERELICTS

-HEAD-
                    SUBCHAPTER III - ICE AND DERELICTS                

-End-

-CITE-
    46 USC APPENDIX Sec. 738                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 19 - WRECKS AND SALVAGE
    SUBCHAPTER III - ICE AND DERELICTS

-HEAD-
    Sec. 738. International agreements as to ice patrol and derelict
      destruction; allocation of expenses

-STATUTE-
      The President is authorized to conclude agreements with
    interested maritime nations (a) to maintain in the north Atlantic
    Ocean a service of ice patrol, of study and observation of ice and
    current conditions, and of assistance to vessels and their crews
    requiring aid within the limits of the patrol; (b) to maintain a
    service of study and observation of ice and current conditions in
    such waters as may affect the set and drift of ice in the north
    Atlantic Ocean; and (c) to undertake all practicable steps to
    insure the destruction or removal of derelicts in the northern part
    of the Atlantic Ocean, east of the line drawn from Cape Sable to a
    point in latitude thirty-four degrees north, longitude seventy
    degrees west, if this destruction or removal is necessary. The
    President is further authorized to include in such agreements a
    provision for payment to the United States by the countries
    concerned, of their proportionate share of the expense for
    maintenance of the services named, or for the United States to
    contribute its proportionate share should it be agreed that another
    country was to maintain the patrol.

-SOURCE-
    (June 25, 1936, ch. 807, Sec. 1, 49 Stat. 1922.)

-End-

-CITE-
    46 USC APPENDIX Sec. 738a                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 19 - WRECKS AND SALVAGE
    SUBCHAPTER III - ICE AND DERELICTS

-HEAD-
    Sec. 738a. Patrol services

-STATUTE-
    (a) Maintenance of ice patrol; aid to ships in distress;
      destruction of derelicts
      Unless the agreements made in accordance with section 738 of this
    Appendix provide otherwise, an ice patrol shall be maintained
    during the whole of the ice season in guarding the southeastern,
    southern, and southwestern limits of the region of icebergs in the
    vicinity of the Grand Banks of Newfoundland, and the patrol shall
    inform trans-Atlantic and other passing vessels by radio and such
    other means as are available of the ice conditions and the extent
    of the dangerous region. A service of study of ice and current
    conditions, a service of affording assistance to vessels and crews
    requiring aid, and a service of removing and destroying derelicts
    shall be maintained during the ice season and any or all such
    services may be maintained during the remainder of the year as may
    be advisable.
    (b) Warning to vessels
      The ice patrol vessels shall warn vessels known to be approaching
    a dangerous area and recommend safe routes.
    (c) Report on ships in dangerous regions
      The ice patrol vessels shall record the name, together with all
    the facts in the case, of any ship which is observed or known to be
    on other than a regular recognized or advertised ship route
    crossing the North Atlantic Ocean, or to have crossed the fishing
    banks of Newfoundland north of latitude forty-three degrees north
    during the fishing season, or, when proceeding to and from ports of
    North America to have passed through regions known or believed to
    be endangered by ice. The name of any such ship and all pertinent
    information relating to the incident shall be reported to the
    government of the country to which the ship belongs, if the
    government of that country so requests.
    (d) Administration by Coast Guard
      The Commandant of the Coast Guard, under the direction of the
    Secretary of Transportation, shall administer the services provided
    for in this section and shall assign thereto such vessels,
    material, and personnel of the Coast Guard as may be necessary. Any
    executive department or agency may upon the request of the
    Secretary of Transportation detail personnel, loan or contribute
    material or equipment, or otherwise assist in the carrying out of
    the services named.
    (e) Annual report
      The Commandant of the Coast Guard shall publish each year a
    report of the activities of the services provided for in this
    section, a copy of which shall be furnished to each interested
    foreign government and to each agency assisting in the work.

-SOURCE-
    (June 25, 1936, ch. 807, Sec. 2, 49 Stat. 1922; Pub. L. 89-670,
    Sec. 6(b)(1), Oct. 15, 1966, 80 Stat. 938.)

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      For transfer of authorities, functions, personnel, and assets of
    the Coast Guard, including the authorities and functions of the
    Secretary of Transportation relating thereto, to the Department of
    Homeland Security, and for treatment of related references, see
    sections 468(b), 551(d), 552(d), and 557 of Title 6, Domestic
    Security, and the Department of Homeland Security Reorganization
    Plan of November 25, 2002, as modified, set out as a note under
    section 542 of Title 6.
      "Secretary of Transportation" substituted in subsec. (d) for
    "Secretary of the Treasury" on authority of Pub. L. 89-670, Sec.
    6(b)(1), Oct. 15, 1966, 80 Stat. 938, which transferred functions,
    powers, and duties relating to Coast Guard of Secretary of the
    Treasury and of other officers and offices of Department of the
    Treasury to Secretary of Transportation. Section 6(b)(2) of Pub. L.
    89-670, however, provided that notwithstanding such transfer of
    functions, Coast Guard shall operate as part of Navy in time of war
    or when President directs as provided in section 3 of Title 14,
    Coast Guard. See section 108 of Title 49, Transportation.
      For transfer of functions of other officers, employees, and
    agencies of Department of the Treasury, with certain exceptions, to
    Secretary of the Treasury with power to delegate, see Reorg. Plan
    No. 26 of 1950, Secs. 1, 2, eff. July 31, 1950, 15 F.R. 4935, 64
    Stat. 1280, 1281, set out in the Appendix to Title 5, Government
    Organization and Employees. Functions of Coast Guard, and
    Commandant of Coast Guard, excepted from transfer when Coast Guard
    is operating as part of Navy under sections 1 and 3 of Title 14,
    Coast Guard.

-End-

-CITE-
    46 USC APPENDIX Sec. 738c                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 19 - WRECKS AND SALVAGE
    SUBCHAPTER III - ICE AND DERELICTS

-HEAD-
    Sec. 738c. Speed of vessel in ice region; penalty

-STATUTE-
      (a) The master of every vessel of the United States when ice is
    reported on or near his course, shall proceed at a moderate speed
    or alter his course so as to go well clear of the danger zone.
      (b) If the master of any such ship fails to comply with this
    section, he shall for each offense be liable to a fine not
    exceeding $500.

-SOURCE-
    (June 25, 1936, ch. 807, Sec. 4, 49 Stat. 1923.)

-End-

-CITE-
    46 USC APPENDIX CHAPTER 19A - ADMIRALTY AND
           MARITIME JURISDICTION                           01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 19A - ADMIRALTY AND MARITIME JURISDICTION

-HEAD-
             CHAPTER 19A - ADMIRALTY AND MARITIME JURISDICTION         

-MISC1-
    Sec.                                                     
    740.        Extension of admiralty and maritime jurisdiction;
                 libel in rem or in personam; exclusive remedy;
                 waiting period.                                      

-End-

-CITE-
    46 USC APPENDIX Sec. 740                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 19A - ADMIRALTY AND MARITIME JURISDICTION

-HEAD-
    Sec. 740. Extension of admiralty and maritime jurisdiction; libel
      in rem or in personam; exclusive remedy; waiting period

-STATUTE-
      The admiralty and maritime jurisdiction of the United States
    shall extend to and include all cases of damage or injury, to
    person or property, caused by a vessel on navigable water,
    notwithstanding that such damage or injury be done or consummated
    on land.
      In any such case suit may be brought in rem or in personam
    according to the principles of law and the rules of practice
    obtaining in cases where the injury or damage has been done and
    consummated on navigable water: Provided, That as to any suit
    against the United States for damage or injury done or consummated
    on land by a vessel on navigable waters, the Public Vessels Act [46
    App. U.S.C. 781 et seq.] or Suits in Admiralty Act [46 App. U.S.C.
    741 et seq.], as appropriate, shall constitute the exclusive remedy
    for all causes of action arising after June 19, 1948, and for all
    causes of action where suit has not been hitherto filed under the
    Federal Tort Claims Act: Provided further, That no suit shall be
    filed against the United States until there shall have expired a
    period of six months after the claim has been presented in writing
    to the Federal agency owning or operating the vessel causing the
    injury or damage.

-SOURCE-
    (June 19, 1948, ch. 526, 62 Stat. 496.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Public Vessels Act, referred to in text, is act Mar. 3, 1925,
    ch. 428, 43 Stat. 1112, as amended, which is classified generally
    to chapter 22 (Sec. 781 et seq.) of this Appendix. For complete
    classification of this Act to the Code, see Short Title note set
    out under section 781 of this Appendix and Tables.
      The Suits in Admiralty Act, referred to in text, is act Mar. 9,
    1920, ch. 95, 41 Stat. 525, as amended, which is classified
    generally to chapter 20 (Sec. 741 et seq.) of this Appendix. For
    complete classification of this Act to the Code, see Short Title
    note set out under section 741 of this Appendix and Tables.
      The Federal Tort Claims Act, referred to in text, is classified
    generally to section 1346(b) and chapter 171 (Sec. 2671 et seq.) of
    Title 28, Judiciary and Judicial Procedure.

-End-

-CITE-
    46 USC APPENDIX CHAPTER 20 - SUITS IN ADMIRALTY
           BY OR AGAINST VESSELS OR CARGOES OF
           UNITED STATES                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 20 - SUITS IN ADMIRALTY BY OR AGAINST VESSELS OR CARGOES OF
                  UNITED STATES                   

-HEAD-
    CHAPTER 20 - SUITS IN ADMIRALTY BY OR AGAINST VESSELS OR CARGOES OF
                               UNITED STATES

-MISC1-
    Sec.                                                     
    741.        Exemption of United States vessels and cargoes from
                 arrest or seizure.                                   
    742.        Libel in personam.                                    
    743.        Procedure in cases of libel in personam.              
    743a.       Omitted.                                              
    744.        Release of privately owned vessel after seizure.      
    745.        Causes of action for which suits may be brought;
                 limitations; exceptions; actions which may not be
                 revived; interest on claims.                         
    746.        Exemptions and limitations of liability.              
    747.        Seizures in foreign jurisdictions.                    
    748.        Payment of judgment, award, or settlement.            
    749.        Arbitration, compromise, or settlement of claims.     
    750.        Recovery for salvage services by vessel or crew.      
    751.        Disposition of moneys recovered by United States.     
    752.        Reports as to awards and settlements.                 

-End-

-CITE-
    46 USC APPENDIX Sec. 741                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 20 - SUITS IN ADMIRALTY BY OR AGAINST VESSELS OR CARGOES OF
                  UNITED STATES                   

-HEAD-
    Sec. 741. Exemption of United States vessels and cargoes from
      arrest or seizure

-STATUTE-
      No vessel owned by the United States or by any corporation in
    which the United States or its representatives shall own the entire
    outstanding capital stock or in the possession of the United States
    or of such corporation or operated by or for the United States or
    such corporation, and no cargo owned or possessed by the United
    States or by such corporation, shall after March 9, 1920, in view
    of the provision herein made for a libel in personam, be subject to
    arrest or seizure by judicial process in the United States or its
    possessions: Provided, That this chapter shall not apply to the
    Panama Canal Commission.

-SOURCE-
    (Mar. 9, 1920, ch. 95, Sec. 1, 41 Stat. 525; Sept. 26, 1950, ch.
    1049, Sec. 2(a)(2), 64 Stat. 1038; Pub. L. 96-70, Sec. 3(b)(5),
    Sept. 27, 1979, 93 Stat. 455.)

-CHANGE-
                              CHANGE OF NAME                          
      "Panama Canal Commission" substituted in text for "Panama Canal
    Company" pursuant to act Sept. 27, 1979.
      "Panama Canal Company" substituted in text for "Panama Railroad
    Company" pursuant to act Sept. 26, 1950.

-MISC1-
                                SHORT TITLE                            
      Act Mar. 9, 1920, ch. 95, which enacted this chapter, is
    popularly known as the "Suits in Admiralty Act".

-End-

-CITE-
    46 USC APPENDIX Sec. 742                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 20 - SUITS IN ADMIRALTY BY OR AGAINST VESSELS OR CARGOES OF
                  UNITED STATES                   

-HEAD-
    Sec. 742. Libel in personam

-STATUTE-
      In cases where if such vessel were privately owned or operated,
    or if such cargo were privately owned or possessed, or if a private
    person or property were involved, a proceeding in admiralty could
    be maintained, any appropriate nonjury proceeding in personam may
    be brought against the United States or against such corporation.
    Such suits shall be brought in the district court of the United
    States for the district in which the parties so suing, or any of
    them, reside or have their principal place of business in the
    United States, or in which the vessel or cargo charged with
    liability is found. In case the United States or such corporation
    shall file a libel in rem or in personam in any district, a cross
    libel in personam may be filed or a set-off claimed against the
    United States or such corporation with the same force and effect as
    if the libel had been filed by a private party. Upon application of
    either party the cause may, in the discretion of the court, be
    transferred to any other district court of the United States.

-SOURCE-
    (Mar. 9, 1920, ch. 95, Sec. 2, 41 Stat. 525; Pub. L. 86-770, Sec.
    3, Sept. 13, 1960, 74 Stat. 912; Pub. L. 104-324, title XI, Sec.
    1105, Oct. 19, 1996, 110 Stat. 3967.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Such corporation, referred to in text, probably means a
    corporation mentioned in section 741 of this Appendix.

-MISC1-
                                AMENDMENTS                            
      1996 - Pub. L. 104-324 struck out "The libelant shall forthwith
    serve a copy of his libel on the United States attorney for such
    district and mail a copy thereof by registered mail to the Attorney
    General of the United States, and shall file a sworn return of such
    service and mailing. Such service and mailing shall constitute
    valid service on the United States and such corporation." after
    "liability is found."
      1960 - Pub. L. 86-770 amended first sentence by substituting
    "owned or possessed" for "owned and possessed" and ", any
    appropriate nonjury proceeding" for "at the time of the
    commencement of the action herein provided for, a libel", inserting
    "or if a private person or property were involved" and striking out
    "as the case may be, provided that such vessel is employed as a
    merchant vessel or is a tugboat operated by such corporation" after
    "such corporation".

                     EFFECTIVE DATE OF 1960 AMENDMENT                 
      Section 4 of Pub. L. 86-770 provided in part that: "The amendment
    made by section 3 [amending this section] shall apply to any case
    or proceeding brought after the date of enactment of this Act
    [Sept. 13, 1960]."

-End-

-CITE-
    46 USC APPENDIX Sec. 743                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 20 - SUITS IN ADMIRALTY BY OR AGAINST VESSELS OR CARGOES OF
                  UNITED STATES                   

-HEAD-
    Sec. 743. Procedure in cases of libel in personam

-STATUTE-
      Such suits shall proceed and shall be heard and determined
    according to the principles of law and to the rules of practice
    obtaining in like cases between private parties. A decree against
    the United States or such corporation may include costs of suit,
    and when the decree is for a money judgment, interest at the rate
    of 4 per centum per annum until satisfied, or at any higher rate
    which shall be stipulated in any contract upon which such decree
    shall be based. Interest shall run as ordered by the court. Decrees
    shall be subject to appeal and revision as now provided in other
    cases of admiralty and maritime jurisdiction. If the libelant so
    elects in his libel, the suit may proceed in accordance with the
    principles of libels in rem wherever it shall appear that had the
    vessel or cargo been privately owned and possessed a libel in rem
    might have been maintained. Election so to proceed shall not
    preclude the libelant in any proper case from seeking relief in
    personam in the same suit. Neither the United States nor such
    corporation shall be required to give any bond or admiralty
    stipulation on any proceeding brought hereunder.

-SOURCE-
    (Mar. 9, 1920, ch. 95, Sec. 3, 41 Stat. 526; Pub. L. 97-31, Sec.
    12(25)(A), Aug. 6, 1981, 95 Stat. 155.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Such corporation, referred to in text, probably means a
    corporation mentioned in section 741 of this Appendix.

-MISC1-
                                AMENDMENTS                            
      1981 - Pub. L. 97-31 struck out provisions relating to bonds or
    stipulations given prior to Mar. 9, 1920, in admiralty causes.

-End-

-CITE-
    46 USC APPENDIX Sec. 743a                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 20 - SUITS IN ADMIRALTY BY OR AGAINST VESSELS OR CARGOES OF
                  UNITED STATES                   

-HEAD-
    Sec. 743a. Omitted

-COD-
                               CODIFICATION                           
      Section, act June 30, 1932, ch. 315, 47 Stat. 420, related to
    interest on claims. See section 745 of this Appendix.

-End-

-CITE-
    46 USC APPENDIX Sec. 744                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 20 - SUITS IN ADMIRALTY BY OR AGAINST VESSELS OR CARGOES OF
                  UNITED STATES                   

-HEAD-
    Sec. 744. Release of privately owned vessel after seizure

-STATUTE-
      If a privately owned vessel not in the possession of the United
    States or of such corporation is arrested or attached upon any
    cause of action arising or alleged to have arisen from previous
    possession, ownership, or operation of such vessel by the United
    States or by such corporation, such vessel shall be released
    without bond or stipulation therefor upon the suggestion by the
    United States, through its Attorney General or other duly
    authorized law officer, that it is interested in such cause,
    desires such release, and assumes the liability for the
    satisfaction of any decree obtained by the libelant in such cause,
    and thereafter such cause shall proceed against the United States
    in accordance with the provisions of this chapter.

-SOURCE-
    (Mar. 9, 1920, ch. 95, Sec. 4, 41 Stat. 526.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Such corporation, referred to in text, probably means a
    corporation mentioned in section 741 of this Appendix.

-End-

-CITE-
    46 USC APPENDIX Sec. 745                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 20 - SUITS IN ADMIRALTY BY OR AGAINST VESSELS OR CARGOES OF
                  UNITED STATES                   

-HEAD-
    Sec. 745. Causes of action for which suits may be brought;
      limitations; exceptions; actions which may not be revived;
      interest on claims

-STATUTE-
      Suits as authorized by this chapter may be brought only within
    two years after the cause of action arises: Provided, That where a
    remedy is provided by this chapter it shall hereafter be exclusive
    of any other action by reason of the same subject matter against
    the agent or employee of the United States or of any incorporated
    or unincorporated agency thereof whose act or omission gave rise to
    the claim: Provided further, That the limitations contained in this
    section for the commencement of suits shall not bar any suit
    against the United States brought hereunder within one year after
    December 13, 1950, if such suit is based upon a cause of action
    whereon a prior suit in admiralty or an action at law was timely
    commenced and was or may hereafter be dismissed solely because
    improperly brought against any person, partnership, association, or
    corporation engaged by the United States to manage and conduct the
    business of a vessel owned or bareboat chartered by the United
    States or against the master of any such vessel: And provided
    further, That after June 30, 1932, no interest shall be allowed on
    any claim prior to the time when suit on such claim is brought as
    authorized by section 742 of this Appendix unless upon a contract
    expressly stipulating for the payment of interest.

-SOURCE-
    (Mar. 9, 1920, ch. 95, Sec. 5, 41 Stat. 526; June 30, 1932, ch.
    315, 47 Stat. 420; Dec. 13, 1950, ch. 1136, 64 Stat. 1112.)

-MISC1-
                                AMENDMENTS                            
      1950 - Act Dec. 13, 1950, extended time limit within which
    certain suits in admiralty may be brought against United States.
      1932 - Act June 30, 1932, amended section generally. Prior to
    amendment, section read as follows: "That suits as herein
    authorized may be brought only on causes of action arising since
    April 6, 1917, provided that suits based on causes of action
    arising prior to the taking effect of this Act shall be brought
    within one year after this Act goes into effect; and all other
    suits hereunder shall be brought within two years after the cause
    of action arises."

                             SAVINGS PROVISION                         
      Section 5 of act Mar. 9, 1920, as amended by act June 30, 1932,
    also contained a saving clause in connection with certain suits
    instituted prior to Dec. 31, 1932.

-End-

-CITE-
    46 USC APPENDIX Sec. 746                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 20 - SUITS IN ADMIRALTY BY OR AGAINST VESSELS OR CARGOES OF
                  UNITED STATES                   

-HEAD-
    Sec. 746. Exemptions and limitations of liability

-STATUTE-
      The United States or such corporation shall be entitled to the
    benefits of all exemptions and of all limitations of liability
    accorded by law to the owners, charterers, operators, or agents of
    vessels.

-SOURCE-
    (Mar. 9, 1920, ch. 95, Sec. 6, 41 Stat. 527.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Such corporation, referred to in text, probably means a
    corporation mentioned in section 741 of this Appendix.

-End-

-CITE-
    46 USC APPENDIX Sec. 747                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 20 - SUITS IN ADMIRALTY BY OR AGAINST VESSELS OR CARGOES OF
                  UNITED STATES                   

-HEAD-
    Sec. 747. Seizures in foreign jurisdictions

-STATUTE-
      If any vessel or cargo within the purview of sections 741 and 744
    of this Appendix is arrested, attached, or otherwise seized by
    process of any court in any country other than the United States,
    or if any suit is brought therein against the master of any such
    vessel for any cause of action arising from, or in connection with,
    the possession, operation, or ownership of any such vessel, or the
    possession, carriage, or ownership of any such cargo, the Secretary
    of State of the United States in his discretion, upon the request
    of the Attorney General of the United States, or any other officer
    duly authorized by him, may direct the United States consul
    residing at or nearest the place at which such action may have been
    commenced to claim such vessel or cargo as immune from such arrest,
    attachment, or other seizure, and to execute an agreement,
    undertaking, bond, or stipulation for and on behalf of the United
    States, or the Maritime Administration, or such corporation as by
    said court required, for the release of such vessel or cargo, and
    for the prosecution of any appeal; or may, in the event of such
    suits against the master of any such vessel, direct said United
    States consul to enter the appearance of the United States, or of
    the Maritime Administration, or of such corporation, and to pledge
    the credit thereof to the payment of any judgment and cost that may
    be entered in such suit. The Attorney General is vested with power
    and authority to arrange with any bank, surety company, person,
    firm, or corporation in the United States, its Territories and
    possessions, or in any foreign country, to execute any such
    aforesaid bond or stipulation as surety or stipulator thereon, and
    to pledge the credit of the United States to the indemnification of
    such surety or stipulator as may be required to secure the
    execution of such bond or stipulation. The presentation of a copy
    of the judgment roll in any such suit, certified by the clerk of
    the court and authenticated by the certificate and seal of the
    United States consul claiming such vessel or cargo, or his
    successor, and by the certificate of the Secretary of State as to
    the official capacity of such consul, shall be sufficient evidence
    to the proper accounting officers of the United States, or of the
    Maritime Administration, or of such corporation, for the allowance
    and payment of such judgments: Provided, however, That nothing in
    this section shall be held to prejudice or preclude a claim of the
    immunity of such vessel or cargo from foreign jurisdiction in a
    proper case.

-SOURCE-
    (Mar. 9, 1920, ch. 95, Sec. 7, 41 Stat. 527; Pub. L. 97-31, Sec.
    12(25)(B), Aug. 6, 1981, 95 Stat. 155.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Such corporation, referred to in text, probably means a
    corporation mentioned in section 741 of this Appendix.

-MISC1-
                                AMENDMENTS                            
      1981 - Pub. L. 97-31 substituted "Maritime Administration" for
    "United States Shipping Board", wherever appearing. For prior
    transfers of functions, see Transfer of Functions note below.

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      For transfer of functions of United States Shipping Board, see
    Ex. Ord. No. 6166, set out under section 901 of Title 5, Government
    Organization and Employees, act June 29, 1936, ch. 858, title II,
    Sec. 204, title IX, Sec. 904, 49 Stat. 1987, 2016, and Reorg. Plan
    No. 6 of 1949 and Reorg. Plan No. 21 of 1950, set out under section
    1111 of this Appendix.

-End-

-CITE-
    46 USC APPENDIX Sec. 748                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 20 - SUITS IN ADMIRALTY BY OR AGAINST VESSELS OR CARGOES OF
                  UNITED STATES                   

-HEAD-
    Sec. 748. Payment of judgment, award, or settlement

-STATUTE-
      Any final judgment rendered in any suit herein authorized, and
    any final judgment within the purview of sections 744 and 747 of
    this Appendix, and any arbitration award or settlement had and
    agreed to under the provisions of section 749 of this Appendix,
    shall, upon the presentation of a duly authenticated copy thereof,
    be paid by the proper accounting officers of the United States out
    of any appropriation or insurance fund or other fund especially
    available therefor; otherwise there is hereby appropriated, out of
    any money in the Treasury of the United States not otherwise
    appropriated, a sum sufficient to pay any such judgment or award or
    settlement.

-SOURCE-
    (Mar. 9, 1920, ch. 95, Sec. 8, 41 Stat. 527.)

-MISC1-
                              APPROPRIATIONS                          
      Section 3 of act June 26, 1934, ch. 756, 48 Stat. 1226, which was
    classified to section 725b of former Title 31, Money and Finance,
    provided in part that, effective July 1, 1935, the permanent or
    continuing appropriation accounts "Judgments in admiralty suits
    under Act of March 9, 1920 [46 App. U.S.C. 748], War Department
    (8x143)" and "Judgments in admiralty suits under Act of March 9,
    1920 [46 App. U.S.C. 748], United States Shipping Board (0x556)"
    are abolished, and any unobligated balances in such accounts are
    covered into the Treasury; and that any claims accruing on and
    after July 1, 1935, which, but for this section would have been
    charged to these appropriation titles, shall, upon proper audit, be
    certified to Congress for appropriation from the general fund of
    the Treasury, which is authorized.

-End-

-CITE-
    46 USC APPENDIX Sec. 749                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 20 - SUITS IN ADMIRALTY BY OR AGAINST VESSELS OR CARGOES OF
                  UNITED STATES                   

-HEAD-
    Sec. 749. Arbitration, compromise, or settlement of claims

-STATUTE-
      The Secretary of any department of the Government of the United
    States, or the board of trustees of such corporation, are, and each
    is, authorized to arbitrate, compromise, or settle any claim in
    which suit will lie under the provisions of sections 742, 744, and
    750 of this Appendix.

-SOURCE-
    (Mar. 9, 1920, ch. 95, Sec. 9, 41 Stat. 527; Pub. L. 92-417, Sec.
    3, Aug. 29, 1972, 86 Stat. 656; Pub. L. 97-31, Sec. 12(25)(C), Aug.
    6, 1981, 95 Stat. 155.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Such corporation, referred to in text, probably means a
    corporation mentioned in section 741 of this Appendix.

-MISC1-
                                AMENDMENTS                            
      1981 - Pub. L. 97-31 struck out reference to the United States
    Shipping Board.
      1972 - Pub. L. 92-417 struck out "having control of the
    possession or operation of any merchant vessel" before "are, and
    each is".

-End-

-CITE-
    46 USC APPENDIX Sec. 750                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 20 - SUITS IN ADMIRALTY BY OR AGAINST VESSELS OR CARGOES OF
                  UNITED STATES                   

-HEAD-
    Sec. 750. Recovery for salvage services by vessel or crew

-STATUTE-
      The United States, and the crew of any merchant vessel owned or
    operated by the United States, or such corporation, shall have the
    right to collect and sue for salvage services rendered by such
    vessel and crew, and any moneys recovered therefrom by the United
    States for its own benefit, and not for the benefit of the crew,
    shall be covered into the United States Treasury to the credit of
    the department of the Government of the United States, or of such
    corporation, having control of the possession or operation of such
    vessel.

-SOURCE-
    (Mar. 9, 1920, ch. 95, Sec. 10, 41 Stat. 528; Pub. L. 97-31, Sec.
    12(25)(D), Aug. 6, 1981, 95 Stat. 155.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Such corporation, referred to in text, probably means a
    corporation mentioned in section 741 of this Appendix.

-MISC1-
                                AMENDMENTS                            
      1981 - Pub. L. 97-31 struck out reference to the United States
    Shipping Board.

-End-

-CITE-
    46 USC APPENDIX Sec. 751                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 20 - SUITS IN ADMIRALTY BY OR AGAINST VESSELS OR CARGOES OF
                  UNITED STATES                   

-HEAD-
    Sec. 751. Disposition of moneys recovered by United States

-STATUTE-
      All moneys recovered in any suit brought by the United States on
    any cause of action arising from, or in connection with, the
    possession, operation, or ownership of any merchant vessel, or the
    possession, carriage, or ownership of any cargo, shall be covered
    into the United States Treasury to the credit of the department of
    the Government of the United States, or of such aforesaid
    corporation, having control of the vessel or cargo with respect to
    which such cause of action arises, for reimbursement of the
    appropriation, or insurance fund, or other funds, from which the
    loss, damage, or compensation for which said judgment was recovered
    has been or will be paid.

-SOURCE-
    (Mar. 9, 1920, ch. 95, Sec. 11, 41 Stat. 528; Pub. L. 97-31, Sec.
    12(25)(D), Aug. 6, 1981, 95 Stat. 155.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Such aforesaid corporation, referred to in text, probably means a
    corporation mentioned in section 741 of this Appendix.

-MISC1-
                                AMENDMENTS                            
      1981 - Pub. L. 97-31 struck out reference to the United States
    Shipping Board.

-End-

-CITE-
    46 USC APPENDIX Sec. 752                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 20 - SUITS IN ADMIRALTY BY OR AGAINST VESSELS OR CARGOES OF
                  UNITED STATES                   

-HEAD-
    Sec. 752. Reports as to awards and settlements

-STATUTE-
      The Secretary of any department of the Government of the United
    States, and the board of trustees of any such aforesaid
    corporation, shall report to the Congress at each session thereof
    the arbitration awards or settlements of claims which shall have
    been agreed to under this chapter since the previous session, and
    in which the time to appeal shall have expired or have been waived.

-SOURCE-
    (Mar. 9, 1920, ch. 95, Sec. 12, 41 Stat. 528; Aug. 30, 1954, ch.
    1076, Sec. 1(26), 68 Stat. 968; Pub. L. 97-31, Sec. 12(25)(E), Aug.
    6, 1981, 95 Stat. 155.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Such aforesaid corporation, referred to in text, probably means a
    corporation mentioned in section 741 of this Appendix.

-MISC1-
                                AMENDMENTS                            
      1981 - Pub. L. 97-31 struck out reference to the United States
    Shipping Board.
      1954 - Act Aug. 30, 1954, repealed provisions requiring the
    Attorney General to make an annual report to Congress of all suits
    under this chapter in which final judgment was rendered for or
    against the United States and the corporations mentioned in section
    741 of this Appendix.

-End-

-CITE-
    46 USC APPENDIX CHAPTER 21 - DEATH ON HIGH SEAS
           BY WRONGFUL ACT                                 01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 21 - DEATH ON HIGH SEAS BY WRONGFUL ACT

-HEAD-
              CHAPTER 21 - DEATH ON HIGH SEAS BY WRONGFUL ACT          

-MISC1-
    Sec.                                                     
    761.        Right of action; where and by whom brought.           
    762.        Amount and apportionment of recovery.                 
    763a.       Limitations.                                          
    764.        Rights of action given by laws of foreign countries.  
    765.        Death of plaintiff pending action.                    
    766.        Contributory negligence.                              
    767.        Exceptions from operation of chapter.                 
    768.        Omitted.                                              

-End-

-CITE-
    46 USC APPENDIX Sec. 761                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 21 - DEATH ON HIGH SEAS BY WRONGFUL ACT

-HEAD-
    Sec. 761. Right of action; where and by whom brought

-STATUTE-
      (a) Subject to subsection (b) of this section, whenever the death
    of a person shall be caused by wrongful act, neglect, or default
    occurring on the high seas beyond a marine league from the shore of
    any State, or the District of Columbia, or the Territories or
    dependencies of the United States, the personal representative of
    the decedent may maintain a suit for damages in the district courts
    of the United States, in admiralty, for the exclusive benefit of
    the decedent's wife, husband, parent, child, or dependent relative
    against the vessel, person, or corporation which would have been
    liable if death had not ensued.
      (b) In the case of a commercial aviation accident, whenever the
    death of a person shall be caused by wrongful act, neglect, or
    default occurring on the high seas 12 nautical miles or closer to
    the shore of any State, or the District of Columbia, or the
    Territories or dependencies of the United States, this chapter
    shall not apply and the rules applicable under Federal, State, and
    other appropriate law shall apply.

-SOURCE-
    (Mar. 30, 1920, ch. 111, Sec. 1, 41 Stat. 537; Pub. L. 106-181,
    title IV, Sec. 404(a), Apr. 5, 2000, 114 Stat. 131.)

-MISC1-
                                AMENDMENTS                            
      2000 - Pub. L. 106-181 designated existing text as subsec. (a),
    inserted "Subject to subsection (b) of this section," before
    "whenever", and added subsec. (b).

                     EFFECTIVE DATE OF 2000 AMENDMENT                 
      Pub. L. 106-181, title IV, Sec. 404(c), Apr. 5, 2000, 114 Stat.
    131, provided that: "The amendments made by subsections (a) and (b)
    [amending this section and section 762 of this Appendix] shall
    apply to any death occurring after July 16, 1996."

                                SHORT TITLE                            
      Act Mar. 30, 1920, ch. 111, which enacted this chapter, is
    popularly know as the "Death on the High Seas Act".

-End-

-CITE-
    46 USC APPENDIX Sec. 762                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 21 - DEATH ON HIGH SEAS BY WRONGFUL ACT

-HEAD-
    Sec. 762. Amount and apportionment of recovery

-STATUTE-
      (a) The recovery in such suit shall be a fair and just
    compensation for the pecuniary loss sustained by the persons for
    whose benefit the suit is brought and shall be apportioned among
    them by the court in proportion to the loss they may severally have
    suffered by reason of the death of the person by whose
    representative the suit is brought.
      (b)(1) If the death resulted from a commercial aviation accident
    occurring on the high seas beyond 12 nautical miles from the shore
    of any State, or the District of Columbia, or the Territories or
    dependencies of the United States, additional compensation for
    nonpecuniary damages for wrongful death of a decedent is
    recoverable. Punitive damages are not recoverable.
      (2) In this subsection, the term "nonpecuniary damages" means
    damages for loss of care, comfort, and companionship.

-SOURCE-
    (Mar. 30, 1920, ch. 111, Sec. 2, 41 Stat. 537; Pub. L. 106-181,
    title IV, Sec. 404(b), Apr. 5, 2000, 114 Stat. 131.)

-MISC1-
                                AMENDMENTS                            
      2000 - Pub. L. 106-181 designated existing provisions as subsec.
    (a) and added subsec. (b).

                     EFFECTIVE DATE OF 2000 AMENDMENT                 
      Amendment by Pub. L. 106-181 applicable to any death occurring
    after July 16, 1996, see section 404(c) of Pub. L. 106-181, set out
    as a note under section 761 of this Appendix.

-End-

-CITE-
    46 USC APPENDIX Sec. 763a                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 21 - DEATH ON HIGH SEAS BY WRONGFUL ACT

-HEAD-
    Sec. 763a. Limitations

-STATUTE-
      Unless otherwise specified by law, a suit for recovery of damages
    for personal injury or death, or both, arising out of a maritime
    tort, shall not be maintained unless commenced within three years
    from the date the cause of action accrued.

-SOURCE-
    (Pub. L. 96-382, Sec. 1, Oct. 6, 1980, 94 Stat. 1525.)

-COD-
                               CODIFICATION                           
      Section was not enacted as part of act Mar. 30, 1920, known as
    the Death on the High Seas Act, which comprises this chapter.

-End-

-CITE-
    46 USC APPENDIX Sec. 764                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 21 - DEATH ON HIGH SEAS BY WRONGFUL ACT

-HEAD-
    Sec. 764. Rights of action given by laws of foreign countries

-STATUTE-
      Whenever a right of action is granted by the law of any foreign
    State on account of death by wrongful act, neglect, or default
    occurring upon the high seas, such right may be maintained in an
    appropriate action in admiralty in the courts of the United States
    without abatement in respect to the amount for which recovery is
    authorized, any statute of the United States to the contrary
    notwithstanding.

-SOURCE-
    (Mar. 30, 1920, ch. 111, Sec. 4, 41 Stat. 537.)

-End-

-CITE-
    46 USC APPENDIX Sec. 765                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 21 - DEATH ON HIGH SEAS BY WRONGFUL ACT

-HEAD-
    Sec. 765. Death of plaintiff pending action

-STATUTE-
      If a person die (!1) as the result of such wrongful act, neglect,
    or default as is mentioned in section 761 of this Appendix during
    the pendency in a court of admiralty of the United States of a suit
    to recover damages for personal injuries in respect of such act,
    neglect, or default, the personal representative of the decedent
    may be substituted as a party and the suit may proceed as a suit
    under this chapter for the recovery of the compensation provided in
    section 762 of this Appendix.

-SOURCE-
    (Mar. 30, 1920, ch. 111, Sec. 5, 41 Stat. 537.)

-FOOTNOTE-
    (!1) So in original. Probably should be "dies".

-End-

-CITE-
    46 USC APPENDIX Sec. 766                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 21 - DEATH ON HIGH SEAS BY WRONGFUL ACT

-HEAD-
    Sec. 766. Contributory negligence

-STATUTE-
      In suits under this chapter the fact that the decedent has been
    guilty of contributory negligence shall not bar recovery, but the
    court shall take into consideration the degree of negligence
    attributable to the decedent and reduce the recovery accordingly.

-SOURCE-
    (Mar. 30, 1920, ch. 111, Sec. 6, 41 Stat. 537.)

-End-

-CITE-
    46 USC APPENDIX Sec. 767                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 21 - DEATH ON HIGH SEAS BY WRONGFUL ACT

-HEAD-
    Sec. 767. Exceptions from operation of chapter

-STATUTE-
      The provisions of any State statute giving or regulating rights
    of action or remedies for death shall not be affected by this
    chapter. Nor shall this chapter apply to the Great Lakes or to any
    waters within the territorial limits of any State, or to any
    navigable waters in the Panama Canal Zone.

-SOURCE-
    (Mar. 30, 1920, ch. 111, Sec. 7, 41 Stat. 538.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      For definition of Canal Zone, referred to in text, see section
    3602(b) of Title 22, Foreign Relations and Intercourse.

-End-

-CITE-
    46 USC APPENDIX Sec. 768                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 21 - DEATH ON HIGH SEAS BY WRONGFUL ACT

-HEAD-
    Sec. 768. Omitted

-COD-
                               CODIFICATION                           
      Section, act Mar. 30, 1920, ch. 111, Sec. 8, 41 Stat. 538,
    provided that this chapter should not affect suits pending on Mar.
    30, 1920.

-End-

-CITE-
    46 USC APPENDIX CHAPTER 22 - SUITS IN ADMIRALTY
           AGAINST UNITED STATES FOR DAMAGES
           CAUSED BY PUBLIC VESSELS OR FOR
           TOWAGE OR SALVAGE SERVICES                      01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 22 - SUITS IN ADMIRALTY AGAINST UNITED STATES FOR DAMAGES
                  CAUSED BY PUBLIC VESSELS OR FOR TOWAGE OR SALVAGE
                  SERVICES                        

-HEAD-
     CHAPTER 22 - SUITS IN ADMIRALTY AGAINST UNITED STATES FOR DAMAGES
        CAUSED BY PUBLIC VESSELS OR FOR TOWAGE OR SALVAGE SERVICES

-MISC1-
    Sec.                                                     
    781.        Libel in admiralty against or impleader of United
                 States.                                              
    782.        Venue of suit; application of provisions of chapter
                 20.                                                  
    783.        Cross libel, set-off, or counterclaim.                
    784.        Subpoenas to officers or members of crews.            
    785.        Suits by nationals of foreign governments.            
    786.        Arbitration, compromise, or settlement.               
    787.        Payment of judgments or settlements.                  
    788.        Lien not created against public vessels.              
    789.        Exemptions and limitations of liability.              
    790.        Reports by Attorney General.                          

-End-

-CITE-
    46 USC APPENDIX Sec. 781                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 22 - SUITS IN ADMIRALTY AGAINST UNITED STATES FOR DAMAGES
                  CAUSED BY PUBLIC VESSELS OR FOR TOWAGE OR SALVAGE
                  SERVICES                        

-HEAD-
    Sec. 781. Libel in admiralty against or impleader of United States

-STATUTE-
      A libel in personam in admiralty may be brought against the
    United States, or a petition impleading the United States, for
    damages caused by a public vessel of the United States, and for
    compensation for towage and salvage services, including contract
    salvage, rendered to a public vessel of the United States:
    Provided, That the cause of action arose after the 6th day of
    April, 1920.

-SOURCE-
    (Mar. 3, 1925, ch. 428, Sec. 1, 43 Stat. 1112.)

-MISC1-
                                SHORT TITLE                            
      Act Mar. 3, 1925, ch. 428, which enacted this chapter, is
    popularly known as the "Public Vessels Act".

-End-

-CITE-
    46 USC APPENDIX Sec. 782                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 22 - SUITS IN ADMIRALTY AGAINST UNITED STATES FOR DAMAGES
                  CAUSED BY PUBLIC VESSELS OR FOR TOWAGE OR SALVAGE
                  SERVICES                        

-HEAD-
    Sec. 782. Venue of suit; application of provisions of chapter 20

-STATUTE-
      Such suit shall be brought in the district court of the United
    States for the district in which the vessel or cargo charged with
    creating the liability is found within the United States, or if
    such vessel or cargo be outside the territorial waters of the
    United States, then in the district court of the United States for
    the district in which the parties so suing, or any of them, reside
    or have an office for the transaction of business in the United
    States; or in case none of such parties reside or have an office
    for the transaction of business in the United States, and such
    vessel or cargo be outside the territorial waters of the United
    States, then in any district court of the United States. Such suits
    shall be subject to and proceed in accordance with the provisions
    of chapter 20 of this Appendix or any amendment thereof, insofar as
    the same are not inconsistent herewith, except that no interest
    shall be allowed on any claim up to the time of the rendition of
    judgment unless upon a contract expressly stipulating for the
    payment of interest.

-SOURCE-
    (Mar. 3, 1925, ch. 428, Sec. 2, 43 Stat. 1112.)

-End-

-CITE-
    46 USC APPENDIX Sec. 783                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 22 - SUITS IN ADMIRALTY AGAINST UNITED STATES FOR DAMAGES
                  CAUSED BY PUBLIC VESSELS OR FOR TOWAGE OR SALVAGE
                  SERVICES                        

-HEAD-
    Sec. 783. Cross libel, set-off, or counterclaim

-STATUTE-
      In the event of the United States filing a libel in rem or in
    personam in admiralty for damages caused by a privately owned
    vessel, the owner of such vessel, or his successors in interest,
    may file a cross libel in personam or claim a set-off or
    counterclaim against the United States in such suit for and on
    account of any damages arising out of the same subject matter or
    cause of action: Provided, That whenever a cross libel is filed for
    any cause of action for which the original libel is filed by
    authority of this chapter, the respondent in the cross libel shall
    give security in the usual amount and form to respond to the claim
    set forth in said cross libel unless the court, for cause shown,
    shall otherwise direct; and all proceedings on the original libel
    shall be stayed until such security shall be given.

-SOURCE-
    (Mar. 3, 1925, ch. 428, Sec. 3, 43 Stat. 1112.)

-End-

-CITE-
    46 USC APPENDIX Sec. 784                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 22 - SUITS IN ADMIRALTY AGAINST UNITED STATES FOR DAMAGES
                  CAUSED BY PUBLIC VESSELS OR FOR TOWAGE OR SALVAGE
                  SERVICES                        

-HEAD-
    Sec. 784. Subpoenas to officers or members of crews

-STATUTE-
      No officer or member of the crew of any public vessel of the
    United States may be subpoenaed in connection with any suit
    authorized under this chapter without the consent of the Secretary
    of the department or the head of any independent establishment of
    the Government having control of the vessel at the time the cause
    of action arose, or of the master or commanding officer of such
    vessel at the time of the issuance of such subpoena.

-SOURCE-
    (Mar. 3, 1925, ch. 428, Sec. 4, 43 Stat. 1112.)

-End-

-CITE-
    46 USC APPENDIX Sec. 785                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 22 - SUITS IN ADMIRALTY AGAINST UNITED STATES FOR DAMAGES
                  CAUSED BY PUBLIC VESSELS OR FOR TOWAGE OR SALVAGE
                  SERVICES                        

-HEAD-
    Sec. 785. Suits by nationals of foreign governments

-STATUTE-
      No suit may be brought under this chapter by a national of any
    foreign government unless it shall appear to the satisfaction of
    the court in which suit is brought that said government, under
    similar circumstances, allows nationals of the United States to sue
    in its courts.

-SOURCE-
    (Mar. 3, 1925, ch. 428, Sec. 5, 43 Stat. 1113.)

-End-

-CITE-
    46 USC APPENDIX Sec. 786                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 22 - SUITS IN ADMIRALTY AGAINST UNITED STATES FOR DAMAGES
                  CAUSED BY PUBLIC VESSELS OR FOR TOWAGE OR SALVAGE
                  SERVICES                        

-HEAD-
    Sec. 786. Arbitration, compromise, or settlement

-STATUTE-
      The Attorney General of the United States is authorized to
    arbitrate, compromise, or settle any claim on which a libel or
    cross libel would lie under the provisions of this chapter, and for
    which a libel or cross libel has actually been filed.

-SOURCE-
    (Mar. 3, 1925, ch. 428, Sec. 6, 43 Stat. 1113.)

-End-

-CITE-
    46 USC APPENDIX Sec. 787                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 22 - SUITS IN ADMIRALTY AGAINST UNITED STATES FOR DAMAGES
                  CAUSED BY PUBLIC VESSELS OR FOR TOWAGE OR SALVAGE
                  SERVICES                        

-HEAD-
    Sec. 787. Payment of judgments or settlements

-STATUTE-
      Any final judgment rendered on any libel or cross libel herein
    authorized, and any settlement had and agreed to under the
    provisions of section 786 of this Appendix, shall, upon
    presentation of a duly authenticated copy thereof, be paid by the
    proper accounting officer of the United States out of any moneys in
    the Treasury of the United States appropriated therefor by
    Congress.

-SOURCE-
    (Mar. 3, 1925, ch. 428, Sec. 7, 43 Stat. 1113.)

-End-

-CITE-
    46 USC APPENDIX Sec. 788                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 22 - SUITS IN ADMIRALTY AGAINST UNITED STATES FOR DAMAGES
                  CAUSED BY PUBLIC VESSELS OR FOR TOWAGE OR SALVAGE
                  SERVICES                        

-HEAD-
    Sec. 788. Lien not created against public vessels

-STATUTE-
      Nothing contained in this chapter shall be construed to recognize
    the existence of or as creating a lien against any public vessel of
    the United States.

-SOURCE-
    (Mar. 3, 1925, ch. 428, Sec. 8, 43 Stat. 1113.)

-End-

-CITE-
    46 USC APPENDIX Sec. 789                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 22 - SUITS IN ADMIRALTY AGAINST UNITED STATES FOR DAMAGES
                  CAUSED BY PUBLIC VESSELS OR FOR TOWAGE OR SALVAGE
                  SERVICES                        

-HEAD-
    Sec. 789. Exemptions and limitations of liability

-STATUTE-
      The United States shall be entitled to the benefits of all
    exemptions and of all limitations of liability accorded by law to
    the owners, charterers, operators or agents of vessels.

-SOURCE-
    (Mar. 3, 1925, ch. 428, Sec. 9, 43 Stat. 1113.)

-End-

-CITE-
    46 USC APPENDIX Sec. 790                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 22 - SUITS IN ADMIRALTY AGAINST UNITED STATES FOR DAMAGES
                  CAUSED BY PUBLIC VESSELS OR FOR TOWAGE OR SALVAGE
                  SERVICES                        

-HEAD-
    Sec. 790. Reports by Attorney General

-STATUTE-
      The Attorney General of the United States shall report to the
    Congress at each session thereof all claims which shall have been
    settled under this chapter.

-SOURCE-
    (Mar. 3, 1925, ch. 428, Sec. 10, 43 Stat. 1113; Aug. 30, 1954, ch.
    1076, Sec. 1(26), 68 Stat. 968.)

-MISC1-
                                AMENDMENTS                            
      1954 - Act Aug. 30, 1954, repealed provisions requiring the
    Attorney General also to make annual reports to Congress of all
    suits in which final judgment was rendered under this chapter.

-End-

-CITE-
    46 USC APPENDIX CHAPTER 23 - SHIPPING ACT                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 23 - SHIPPING ACT

-HEAD-
                         CHAPTER 23 - SHIPPING ACT                     

-MISC1-
    Sec.                                                     
    801.        Definitions.                                          
    802.        Corporation, partnership, or association as citizen.  
                  (a)  Ownership of controlling interest.             
                  (b)  Determination of controlling interest.         
                  (c)  Determination of seventy-five per centum of
                        interest.                                     
    803.        Applicability of chapter to receivers and trustees.   
    804a.       Omitted.                                              
    808.        Registration, enrollment, and licensing of vessels
                 purchased, chartered, or leased; unlawful
                 transactions; penalties.                             
                  (a)  Repealed.                                      
                  (b)  Necessity of registration, etc., for operation;
                        laws, regulations, and liabilities applicable.
                  (c)  Sale, lease, etc., to foreign persons; foreign
                        registry or operation.                        
                  (d)  Validity of unlawful charter, sale, etc.;
                        penalties.                                    
                  (e)  Placement in foreign registry without approval
                        of Secretary.                                 
                  (f)  Approval of certain vessel transactions before
                        documentation of vessel.                      
    808a.       Sale, chartering, leasing, mortgaging or transferring
                 of documented vessels without approval of Secretary. 
    811.        Investigations as to cost of merchant vessels.        
    817d.       Financial responsibility of owners and charterers for
                 death or injury to passengers or other persons.      
                  (a)  Amount; method of establishment.               
                  (b)  Issuance of bond when filed with Commission.   
                  (c)  Civil penalties for violations; remission or
                        mitigation of penalties.                      
                  (d)  Rules and regulations.                         
                  (e)  Refusal of departure clearance.                
    817e.       Financial responsibility for indemnification of
                 passengers for nonperformance of transportation.     
                  (a)  Filing of information or bond with Commission. 
                  (b)  Issuance of bond when filed with Commission;
                        amount of bond.                               
                  (c)  Civil penalties for violations; remission or
                        mitigation of penalties.                      
                  (d)  Rules and regulations.                         
                  (e)  Refusal of departure clearance.                
    833.        Partial invalidity of chapter as not affecting
                 remainder.                                           
    834.        Refusal of clearance to vessel refusing to accept
                 freight.                                             
    835.        Restrictions on transfer of shipping facilities during
                 war or national emergency.                           
    836.        Forfeitures.                                          
    837.        Prima facie evidence.                                 
    839.        Approvals by Secretary.                               
    842.        Short title.                                          

                                  REPEALS                              
      Subtitle IV (Sec. 10101 et seq.) of Title 49, Transportation
    (containing the codification of part III of the Interstate Commerce
    Act, as added by Act Sept. 18, 1940, ch. 722, title II, Sec. 201,
    54 Stat. 929, which was classified to sections 901 to 923 of former
    Title 49), provides for the regulation of rates and services of
    water carriers by the Interstate Commerce Commission, thereby
    substantially superseding certain sections of this and the
    following chapters. In this connection section 920(a)-(d) of former
    Title 49 provided:
      "(a) The Shipping Act of 1916, as amended [section 801 et seq. of
    this Appendix], and the Intercoastal Shipping Act, 1933, as amended
    [section 843 et seq. of this Appendix], are repealed insofar as
    they are inconsistent with any provision of this chapter [section
    901 et seq. of former Title 49, Transportation] and insofar as they
    provide for the regulation of, or the making of agreements relating
    to, transportation of persons or property by water in commerce
    which is within the jurisdiction of the Commission under the
    provisions of this chapter; and any other provisions of law are
    hereby repealed insofar as they are inconsistent with any provision
    of this chapter.
      "(b) Nothing in subsection (a) of this section shall be construed
    to repeal - 
        "(1) section 1115 of Title 46 [46 App. U.S.C. 1115], or any
      provision of law providing penalties for violations of said
      section;
        "(2) the third sentence of section 844 of Title 46 [46 App.
      U.S.C. 844], as extended by section 845b of Title 46 [46 App.
      U.S.C. 845b], or any provision of law providing penalties for
      violations of section 844 of Title 46;
        "(3) the provisions of the Shipping Act of 1916, as amended
      [section 801 et seq. of this Appendix], insofar as such Act
      provides for the regulation of persons included within the term
      'other person subject to this Act', as defined in such Act;
        "(4) sections 883 and 884 of Title 46 [46 App. U.S.C. 883,
      884].
      "(c) Nothing in subsection (a) of this section shall be construed
    to affect the provisions of section 814 of Title 46 [46 App. U.S.C.
    814] so as to prevent any water carrier subject to the provisions
    of this chapter from entering into any agreement under the
    provisions of said section with respect to transportation not
    subject to the provisions of this chapter in which such carrier may
    be engaged.
      "(d) Nothing in this chapter shall be construed to affect any law
    of navigation, the admiralty jurisdiction of the courts of the
    United States, liabilities of vessels and their owners for loss or
    damage, or laws respecting seamen, or any other maritime law,
    regulation, or custom not in conflict with the provisions of this
    chapter."

-End-

-CITE-
    46 USC APPENDIX Sec. 801                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 23 - SHIPPING ACT

-HEAD-
    Sec. 801. Definitions

-STATUTE-
      When used in this chapter:
      The term "common carrier by water in interstate commerce" means a
    common carrier engaged in the transportation by water of passengers
    or property on the high seas or the Great Lakes on regular routes
    from port to port between one State, Territory, District, or
    possession of the United States and any other State, Territory,
    District, or possession of the United States, or between places in
    the same Territory, District, or possession.
      The term "other person subject to this chapter" means any person
    not included in the term "common carrier by water in interstate
    commerce," carrying on the business of forwarding or furnishing
    wharfage, dock, warehouse, or other terminal facilities in
    connection with a common carrier by water in interstate commerce.
      The term "person" includes corporations, partnerships, and
    associations, existing under or authorized by the laws of the
    United States, or any State, Territory, District, or possession
    thereof, or of any foreign country.
      The term "vessel" includes all water craft and other artificial
    contrivances of whatever description and at whatever stage of
    construction, whether on the stocks or launched, which are used or
    are capable of being or are intended to be used as a means of
    transportation on water.
      The term "documented under the laws of the United States," means
    "registered, enrolled, or licensed under the laws of the United
    States."
      The term "carrying on the business of forwarding" means the
    dispatching of shipments by any person on behalf of others, by
    ocean-going common carriers in commerce between the United States
    and its Territories or possessions, or between such Territories and
    possessions, and handling the formalities incident to such
    shipments.
      The term "maritime labor agreement" means any collective
    bargaining agreement between an employer subject to this chapter,
    or group of such employers and a labor organization representing
    employees in the maritime or stevedoring industry, or any agreement
    preparatory to such a collective bargaining agreement among members
    of a multiemployer bargaining group, or any agreement specifically
    implementing provisions of such a collective bargaining agreement
    or providing for the formation, financing, or administration of a
    multiemployer bargaining group.

-SOURCE-
    (Sept. 7, 1916, ch. 451, Sec. 1, 39 Stat. 728; July 15, 1918, ch.
    152, Sec. 1, 40 Stat. 900; Pub. L. 87-254, Sec. 1, Sept. 19, 1961,
    75 Stat. 522; Pub. L. 95-483, Sec. 2, Oct. 18, 1978, 92 Stat. 1607;
    Pub. L. 96-325, Sec. 2, Aug. 8, 1980, 94 Stat. 1021; Pub. L. 97-35,
    title XVI, Sec. 1608(a), (c), Aug. 13, 1981, 95 Stat. 752, as
    amended Pub. L. 98-210, Sec. 6, Dec. 6, 1983, 97 Stat. 1410; Pub.
    L. 98-237, Sec. 20(a), (b)(1), Mar. 20, 1984, 98 Stat. 89; Pub. L.
    98-595, Sec. 3(a)(1), Oct. 30, 1984, 98 Stat. 3132.)

-MISC1-
                                AMENDMENTS                            
      1984 - Pub. L. 98-595, Sec. 3(a)(1)(C), struck out "from the
    United States, its Territories, or possessions to foreign
    countries, or" before "between the United States and" in definition
    of "carrying on the business or forwarding".
      Pub. L. 98-595, Sec. 3(a)(1)(B), substituted "common carrier by
    water in interstate commerce" for "common carrier by water" in two
    places in definition of "other person subject to this chapter".
      Pub. L. 98-595, Sec. 3(a)(1)(A), struck out definitions of
    "common carrier by water in foreign commerce" and "common carrier
    by water".
      Pub. L. 98-237 struck out definitions of "controlled carrier" and
    "independent ocean freight forwarder".
      1981 - Pub. L. 97-35, Sec. 1608(a), amended generally definition
    of "independent ocean freight forwarder" striking out provision
    that the person not have any beneficial interest therein nor
    directly or indirectly controls or is controlled by such shipper or
    consignee or by any person having such a beneficial interest.
      Pub. L. 97-35, Sec. 1608(c), which amended generally definition
    of "independent ocean freight forwarder" restoring provisions
    relating to persons having beneficial interests, effective after
    Dec. 31, 1983, was repealed by Pub. L. 98-210.
      1980 - Pub. L. 96-325 inserted definition of "maritime labor
    agreement".
      1978 - Pub. L. 95-483 inserted definition of "controlled
    carrier".
      1961 - Pub. L. 87-254 inserted definitions of "carrying on the
    business of forwarding" and "independent ocean freight forwarder".
      1918 - Act July 15, 1918, inserted definitions of "vessel" and
    "documented under the laws of the United States".

             EFFECTIVE AND TERMINATION DATES OF 1981 AMENDMENT         
      Section 1608(c) of Pub. L. 97-35 which provided in part that
    section 1608 [amending this section and section 841b of this
    Appendix and enacting provisions set out as a note under this
    section] shall remain in effect until Dec. 31, 1983, was repealed
    by Pub. L. 98-210, Sec. 6, Dec. 6, 1983, 97 Stat. 1410, and Pub. L.
    98-237, Sec. 20(a), Mar. 20, 1984, 98 Stat. 89.

                     EFFECTIVE DATE OF 1978 AMENDMENT                 
      Section 4 of Pub. L. 95-483 provided that: "The provisions of
    this Act, including the amendments made by this Act [amending this
    section and section 817 of this Appendix and enacting a provision
    set out as a note under section 842 of this Appendix], shall become
    effective thirty days after its date of enactment [Oct. 18, 1978]."

                                  REPEALS                              
      For provisional repeal, see note set out preceding section 801 of
    this Appendix.
      Section 1608 of Pub. L. 97-35, cited as a credit to this section,
    was repealed by section 20(a) of Pub. L. 98-237.

                             SAVINGS PROVISION                         
      Amendment by Pub. L. 98-237 not to affect suits filed before Mar.
    20, 1984, or claims arising out of conduct engaged in before Mar.
    20, 1984, and filed within 1 year after that date; and agreements,
    contracts, modifications, and exemptions approved or licenses
    issued by the Federal Maritime Commission prior to Mar. 20, 1984,
    to continue as if approved or issued under chapter 36 (Sec. 1701 et
    seq.) of this Appendix, but new agreements, contracts, and
    modifications to existing, pending, or new contracts or agreements
    to be considered under chapter 36 of this Appendix, see section
    1719 of this Appendix.

               REPORT TO CONGRESS ON ENFORCEABILITY AND NEED           
      Section 1608(c) of Pub. L. 97-35 in part directed Federal
    Maritime Commission, by June 1, 1983, to submit a report to
    Congress evaluating enforceability of this section [amending
    sections 801 and 841b of this Appendix] and describing any reasons
    why this section should not be made permanent law, prior to repeal
    by Pub. L. 98-210, Sec. 6, Dec. 6, 1983, 97 Stat. 1410, and Pub. L.
    98-237, Sec. 20(a), Mar. 20, 1984, 98 Stat. 89.

-End-

-CITE-
    46 USC APPENDIX Sec. 802                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 23 - SHIPPING ACT

-HEAD-
    Sec. 802. Corporation, partnership, or association as citizen

-STATUTE-
    (a) Ownership of controlling interest
      Within the meaning of this chapter no corporation, partnership,
    or association shall be deemed a citizen of the United States
    unless the controlling interest therein is owned by citizens of the
    United States, and, in the case of a corporation, unless its chief
    executive officer, by whatever title, and the chairman of its board
    of directors are citizens of the United States and unless no more
    of its directors than a minority of the number necessary to
    constitute a quorum are noncitizens and the corporation itself is
    organized under the laws of the United States or of a State,
    Territory, District, or possession thereof, but in the case of a
    corporation, association, or partnership operating any vessel in
    the coastwise trade the amount of interest required to be owned by
    citizens of the United States shall be 75 per centum.
    (b) Determination of controlling interest
      The controlling interest in a corporation shall not be deemed to
    be owned by citizens of the United States (a) if the title to a
    majority of the stock thereof is not vested in such citizens free
    from any trust or fiduciary obligation in favor of any person not a
    citizen of the United States; or (b) if the majority of the voting
    power in such corporation is not vested in citizens of the United
    States; or (c) if through any contract or understanding it is so
    arranged that the majority of the voting power may be exercised,
    directly or indirectly, in behalf of any person who is not a
    citizen of the United States; or, (d) if by any other means
    whatsoever control of the corporation is conferred upon or
    permitted to be exercised by any person who is not a citizen of the
    United States.
    (c) Determination of seventy-five per centum of interest
      Seventy-five per centum of the interest in a corporation shall
    not be deemed to be owned by citizens of the United States (a) if
    the title to 75 per centum of its stock is not vested in such
    citizens free from any trust or fiduciary obligation in favor of
    any person not a citizen of the United States; or (b) if 75 per
    centum of the voting power in such corporation is not vested in
    citizens of the United States; or (c) if, through any contract or
    understanding, it is so arranged that more than 25 per centum of
    the voting power in such corporation may be exercised, directly or
    indirectly, in behalf of any person who is not a citizen of the
    United States; or (d) if by any other means whatsoever control of
    any interest in the corporation in excess of 25 per centum is
    conferred upon or permitted to be exercised by any person who is
    not a citizen of the United States.

-SOURCE-
    (Sept. 7, 1916, ch. 451, Sec. 2(a)-(c), 39 Stat. 729; July 15,
    1918, ch. 152, Sec. 2, 40 Stat. 900; June 5, 1920, ch. 250, Sec.
    38, 41 Stat. 1008; Pub. L. 86-327, Sec. 3, Sept. 21, 1959, 73 Stat.
    597; Pub. L. 105-383, title IV, Sec. 421, Nov. 13, 1998, 112 Stat.
    3439.)

-COD-
                               CODIFICATION                           
      Section comprises subsecs. (a) to (c) of section 2 of act Sept.
    7, 1916, as amended. Subsec. (d) of section 2 of the act is
    classified to section 803 of this Appendix.

-MISC1-
                                AMENDMENTS                            
      1998 - Subsec. (a). Pub. L. 105-383 struck out "president or
    other" after "corporation, unless its" and inserted ", by whatever
    title," after "chief executive officer".
      1959 - Subsec. (a). Pub. L. 86-327 redefined citizenship
    qualification for corporations by substituting requirement that the
    president or other chief executive officer and the chairman of the
    board of directors be United States citizens and that no more of
    the directors than a minority of the number necessary to constitute
    a quorum be noncitizens for requirement that the president and
    managing directors be United States citizens.
      1920 - Act June 5, 1920, added par. relating to percentage of
    corporate interest required to be owned by United States citizens
    and provisions of first par. concerning vessels in coastwise trade,
    and designated existing paragraphs as subsecs. (a) to (d).
      1918 - Act July 15, 1918, added par. relating to requirements for
    determining controlling interest.

                                  REPEALS                              
      For provisional repeal, see note set out preceding section 801 of
    this Appendix.

-End-

-CITE-
    46 USC APPENDIX Sec. 803                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 23 - SHIPPING ACT

-HEAD-
    Sec. 803. Applicability of chapter to receivers and trustees

-STATUTE-
      The provisions of this chapter shall apply to receivers and
    trustees of all persons to whom the chapter applies, and to the
    successors or assignees of such persons.

-SOURCE-
    (Sept. 7, 1916, ch. 451, Sec. 2(d), 39 Stat. 729; July 15, 1918,
    ch. 152, Sec. 2, 40 Stat. 900; June 5, 1920, ch. 250, Sec. 38, 41
    Stat. 1008.)

-COD-
                               CODIFICATION                           
      Section comprises subsec. (d) of section 2 of act Sept. 7, 1916,
    as amended. Subsecs. (a) to (c) of section 2 of the act are
    classified to section 802 of this Appendix.
      Acts July 15, 1918, and June 5, 1920, made no change in this
    provision of the act Sept. 7, 1916, except that it was designated
    subsec. (d) by section 38 of act June 5, 1920. See Codification
    note set out under section 802 of this Appendix.

-MISC1-
                                  REPEALS                              
      For provisional repeal, see note set out preceding section 801 of
    this Appendix.

-End-

-CITE-
    46 USC APPENDIX Sec. 804a                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 23 - SHIPPING ACT

-HEAD-
    Sec. 804a. Omitted

-COD-
                               CODIFICATION                           
      Section, act June 30, 1932, ch. 314, Sec. 306, 47 Stat. 408,
    which reorganized the United States Shipping Board, was omitted in
    view of abolishment of Board by Ex. Ord. No. 6166, Sec. 12, eff.
    June 10, 1933, set out as a note under section 901 of Title 5,
    Government Organization and Employees.
      Section was not enacted as part of the Shipping Act, 1916 which
    comprises this chapter.

-End-

-CITE-
    46 USC APPENDIX Sec. 808                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 23 - SHIPPING ACT

-HEAD-
    Sec. 808. Registration, enrollment, and licensing of vessels
      purchased, chartered, or leased; unlawful transactions; penalties

-STATUTE-
    (a) Repealed. Pub. L. 101-225, title III, Sec. 307(3), Dec. 12,
      1989, 103 Stat. 1925
    (b) Necessity of registration, etc., for operation; laws,
      regulations, and liabilities applicable
      Every vessel purchased, chartered, or leased from the Secretary
    of Transportation shall, unless otherwise authorized by the
    Secretary of Transportation, be operated only under such registry
    or enrollment and license. Such vessels while employed solely as
    merchant vessels shall be subject to all laws, regulations, and
    liabilities governing merchant vessels, whether the United States
    be interested therein as owner, in whole or in part, or hold any
    mortgage, lien, or other interest therein.
    (c) Sale, lease, etc., to foreign persons; foreign registry or
      operation
      Except as provided in section 1181 of this Appendix and in
    section 12106(e) of title 46, a person may not, without the
    approval of the Secretary of Transportation - 
        (1) sell, lease, charter, deliver, or in any manner transfer,
      or agree to sell, lease, charter, deliver, or in any manner
      transfer, to a person not a citizen of the United States, any
      interest in or control of a documented vessel (except in a vessel
      that has been operated only as a fishing vessel, fish processing
      vessel, or fish tender vessel (as defined in section 2101 of
      title 46) or in a vessel that has been operated only for
      pleasure) owned by a citizen of the United States or the last
      documentation of which was under the laws of the United States;
      or
        (2) place a documented vessel, or a vessel the last
      documentation of which was under the laws of the United States,
      under foreign registry or operate that vessel under the authority
      of a foreign country.
    (d) Validity of unlawful charter, sale, etc.; penalties
      (1) Any charter, sale, or transfer of a vessel, or interest in or
    control of that vessel, contrary to this section is void.
      (2) A person that knowingly charters, sells, or transfers a
    vessel, or interest in or control of that vessel, contrary to this
    section shall be fined under title 18, imprisoned for not more than
    5 years, or both.
      (3) A documented vessel may be seized by, and forfeited to, the
    United States Government if - 
        (A) the vessel is placed under foreign registry or operated
      under the authority of a foreign country contrary to this
      section; or
        (B) a person knowingly charters, sells, or transfers a vessel,
      or interest or control in that vessel, contrary to this section.

      (4) A person that charters, sells, or transfers a vessel, or an
    interest in or control of a vessel, in violation of this section is
    liable to the United States Government for a civil penalty of not
    more than $10,000 for each violation.
    (e) Placement in foreign registry without approval of Secretary
      Notwithstanding subsection (c)(2) of this section, the Merchant
    Marine Act, 1936 [46 App. U.S.C. 1101 et seq.], or any contract
    entered into with the Secretary of Transportation under that Act, a
    vessel may be placed under a foreign registry, without approval of
    the Secretary, if - 
        (1)(A) the Secretary, in conjunction with the Secretary of
      Defense, determines that at least one replacement vessel of equal
      or greater military capability and of a capacity that is
      equivalent or greater, as measured by deadweight tons, gross
      tons, or container equivalent units, as appropriate, is
      documented under chapter 121 of title 46 by the owner of the
      vessel placed under the foreign registry; and
        (B) the replacement vessel is not more than 10 years of age on
      the date of that documentation; or
        (2) an operating agreement covering the vessel under chapter
      531 of title 46 has expired.
    (f) Approval of certain vessel transactions before documentation of
      vessel
      To promote financing with respect to a vessel to be documented
    under chapter 121 of title 46, the Secretary may grant approval
    under subsection (c) of this section before the date the vessel is
    documented.

-SOURCE-
    (Sept. 7, 1916, ch. 451, Sec. 9, 39 Stat. 730; July 15, 1918, ch.
    152, Sec. 3, 40 Stat. 900; June 5, 1920, ch. 250, Sec. 18, 41 Stat.
    994; Ex. Ord. No. 6166, Sec. 12, eff. June 10, 1933; June 29, 1936,
    ch. 858, title II, Sec. 204, title IX, Sec. 904, 49 Stat. 1987,
    2016; June 23, 1938, ch. 600, Sec. 42, 52 Stat. 964; Pub. L. 89-
    346, Sec. 1, Nov. 8, 1965, 79 Stat. 1305; Pub. L. 97-31, Sec.
    12(26), Aug. 6, 1981, 95 Stat. 155; Pub. L. 100-710, title I, Sec.
    104(b), Nov. 23, 1988, 102 Stat. 4750; Pub. L. 101-225, title III,
    Secs. 304(a), 307(3), Dec. 12, 1989, 103 Stat. 1924, 1925; Pub. L.
    104-239, Sec. 6, Oct. 8, 1996, 110 Stat. 3132; Pub. L. 104-324,
    title XI, Secs. 1113(c), (e), 1136(b), Oct. 19, 1996, 110 Stat.
    3970, 3971, 3987; Pub. L. 107-295, title II, Sec. 205(d), Nov. 25,
    2002, 116 Stat. 2096; Pub. L. 108-136, div. C, title XXXV, Sec.
    3532(a), Nov. 24, 2003, 117 Stat. 1817.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Merchant Marine Act, 1936, referred to in subsec. (e), is act
    June 29, 1936, ch. 858, 49 Stat. 1985, as amended, which is
    classified principally to chapter 27 (Sec. 1101 et seq.) of this
    Appendix. For complete classification of this Act to the Code, see
    section 1245 of this Appendix and Tables.

-MISC1-
                                AMENDMENTS                            
      2003 - Subsec. (e). Pub. L. 108-136, Sec. 3532(a)(2), amended
    subsec. (e) generally. Prior to amendment, subsec. (e) specified
    requirements to be met for placement of a vessel under foreign
    registry without approval of the Secretary.
      Pub. L. 108-136, Sec. 3532(a)(1), redesignated subsec. (e),
    relating to approval of certain vessel transactions before
    documentation of vessel, as (f).
      Subsec. (f). Pub. L. 108-136, Sec. 3532(a)(1), redesignated
    subsec. (e), relating to approval of certain vessel transactions
    before documentation of vessel, as (f).
      2002 - Subsec. (c). Pub. L. 107-295, in introductory provisions,
    substituted "Except as provided in section 1181 of this Appendix
    and in section 12106(e) of title 46," for "Except as provided in
    section 1181 of this Appendix and sections 12106(e),
    31322(a)(1)(D), and 12106(e) of title 46,".
      1996 - Subsec. (c). Pub. L. 104-324, Sec. 1113(e), substituted
    "sections 12106(e), 31322(a)(1)(D)," for "sections 31322(a)(1)(D)"
    in introductory provisions.
      Pub. L. 104-324, Sec. 1113(c)(1)(A), substituted "and 12106(e)"
    for "and 31328" in introductory provisions.
      Subsec. (c)(1). Pub. L. 104-324, Sec. 1113(c)(1)(B), struck out
    "mortgage," after "sell," in two places.
      Subsec. (d). Pub. L. 104-324, Sec. 1113(c)(2), substituted "or
    transfer" for "transfer, or mortgage" in par. (1) and "or
    transfers" for "transfers, or mortgages" in pars. (2), (3)(B), and
    (4).
      Subsec. (e). Pub. L. 104-324, Sec. 1136(b), added subsec. (e)
    relating to approval of certain vessel transactions before
    documentation of vessel.
      Pub. L. 104-239 added subsec. (e) relating to conditions for
    placing vessel under foreign registry without approval of
    Secretary.
      1989 - Subsec. (a). Pub. L. 101-225, Sec. 307(3), struck out
    subsec. (a) which related to registration, enrollment, and
    licensing of vessels purchased, chartered, or leased as United
    States vessels and authorization of vessels to engage in the
    coastwise trade of the United States.
      Subsec. (c)(1). Pub. L. 101-225, Sec. 304(a), inserted "or the
    last documentation of which was under the laws of the United
    States" before semicolon at end.
      Subsec. (c)(2). Pub. L. 101-225, Sec. 304(a)(2), inserted ", or a
    vessel the last documentation of which was under the laws of the
    United States," after "a documented vessel".
      Subsec. (d)(1), (2). Pub. L. 101-225, Sec. 304(a)(3), substituted
    "in or control of" for "or control in".
      Subsec. (d)(4). Pub. L. 101-225, Sec. 304(a)(4), added par. (4).
      1988 - Subsecs. (a), (b). Pub. L. 100-710, Sec. 104(b)(1), (2),
    designated first and second undesignated pars. as subsecs. (a) and
    (b), respectively.
      Subsecs. (c), (d). Pub. L. 100-710, Sec. 104(b)(3), substituted
    subsecs. (c) and (d) for third, fourth, and fifth undesignated
    pars. which prohibited, without approval, sale, mortgage, lease,
    etc., to a person not a citizen of the United States, or transfer
    under foreign registry or flag, of vessel owned or documented under
    laws of United States and issuance, transfer, or assignment of bond
    or note secured by vessel without approval and which set forth
    qualifications for approval and penalties for violations of this
    section. Fourth undesignated par. restated in section 31328 of
    Title 46, Shipping.
      1981 - Pub. L. 97-31 substituted "Secretary of Transportation"
    for "United States Maritime Commission", "Commission", and
    "Secretary of Commerce" wherever appearing. For prior transfers of
    functions, see Transfer of Functions note below.
      1965 - Pub. L. 89-346 made it unlawful to issue, transfer, or
    assign a bond, note, or other evidence of indebtedness which is
    secured by a mortgage of a vessel to a trustee or by an assignment
    to a trustee of the owner's right, title, or interest in a vessel
    under construction, to a person not a citizen of the United States,
    without the approval of the Secretary of Commerce, unless the
    trustee or a substitute trustee of such mortgage or assignment is
    approved by the Secretary of Commerce, required the Secretary to
    grant his approval if such trustee or substitute trustee is a bank
    or trust company which meets certain specified qualifications and
    to disapprove such trustee or substitute trustee if at any time he
    ceases to meet such qualifications, made it unlawful to transfer or
    assign such bond, note, or other evidence of indebtedness to a
    person not a citizen of the United States, without the approval of
    the Secretary, after such disapproval, prohibited the trustee or
    substitute trustee approved by the Secretary to operate the vessel
    under the mortgage or assignment without approval of the Secretary,
    and voided the issuance, transfer, or assignments of bonds, notes,
    or other evidences of indebtedness if issued, transferred, or
    assigned to a person not a citizen of United States in violation of
    this section.
      1938 - Act June 23, 1938, amended last two pars. generally.
      1920 - Act June 5, 1920, amended section generally.
      1918 - Act July 15, 1918, amended section generally.

                     EFFECTIVE DATE OF 2003 AMENDMENT                 
      Amendment by Pub. L. 108-136 effective Oct. 1, 2004, see section
    3537(a) of Pub. L. 108-136, set out in an Effective Date note under
    section 53101 of Title 46, Shipping.

                     EFFECTIVE DATE OF 2002 AMENDMENT                 
      Amendment by Pub. L. 107-295 effective Jan. 1, 2003, see section
    205(e) of Pub. L. 107-295, set out as a note under section 12111 of
    Title 46, Shipping.

                     EFFECTIVE DATE OF 1988 AMENDMENT                 
      Amendment by Pub. L. 100-710 effective Jan. 1, 1989, with certain
    exceptions and qualifications, and not applicable to any change in
    control resulting from, or which may at any time result from, any
    proposed plan of reorganization filed under United States
    bankruptcy laws prior to Nov. 23, 1988, except that transactions
    undertaken as a result of such plan shall continue to be governed
    by this section as it existed prior to Nov. 23, 1988, to the extent
    that this section would have governed such transactions, see
    section 107 of Pub. L. 100-710, set out as an Effective Date note
    under section 30101 of Title 46, Shipping.

                          RETROACTIVE PROVISIONS                      
      Section 4 of Pub. L. 89-346 provided that: "Bonds, notes, and
    other evidence of indebtedness which are secured by a mortgage of a
    vessel to a trustee or by an assignment to a trustee of the owner's
    right, title, or interest in a vessel under construction which have
    heretofore been issued, transferred, or assigned, or are issued,
    transferred, or assigned within one year after the enactment of
    this Act [Nov. 8, 1965], to a person not a citizen of the United
    States without the approval of the Secretary of Commerce are valid
    in the hands of such person and the validity and preferred status
    of such mortgage and the validity and lawfulness of such issuance,
    transfer, or assignment shall not be affected by such issuance,
    transfer, or assignment if the trustee or a substitute trustee is
    approved by the Secretary of Commerce within one year after
    enactment of this Act [Nov. 8, 1965], under the standards for
    trustees specified in the amendments made by this Act to sections 9
    and 37 of the Shipping Act, 1916 [sections 808 and 835 of this
    Appendix], and to subsection O of the Ship Mortgage Act, 1920
    [section 961 of this Appendix].
      "Nothing in this section shall be construed to alter
    retroactively any rights which were the subject matter of
    litigation pending on the date of enactment of this Act [Nov. 8,
    1965]."

                                  REPEALS                              
      For provisional repeal, see note set out preceding section 801 of
    this Appendix.

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      "United States Maritime Commission" substituted in text for
    "United States Shipping Board". For dissolution of Board and
    transfer of its functions to United States Maritime Commission, see
    Ex. Ord. No. 6166 and act June 29, 1936. Ex. Ord. No. 6166 is set
    out as a note under section 901 of Title 5, Government Organization
    and Employees. For subsequent transfers of functions, see Reorg.
    Plan No. 6 of 1949 and Reorg. Plan No. 21 of 1950, set out under
    section 1111 of this Appendix.

-End-

-CITE-
    46 USC APPENDIX Sec. 808a                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 23 - SHIPPING ACT

-HEAD-
    Sec. 808a. Sale, chartering, leasing, mortgaging or transferring of
      documented vessels without approval of Secretary

-STATUTE-
      A vessel that is or was last documented under chapter 121 of
    title 46 may be sold, chartered, leased, mortgaged, or transferred
    by any other means to a citizen of the United States (as defined in
    section 2101 of that title) without the approval of the Secretary
    of Transportation under section 808 of this Appendix.

-SOURCE-
    (Pub. L. 98-454, title III, Sec. 302, Oct. 5, 1984, 98 Stat. 1734.)

-COD-
                               CODIFICATION                           
      Section was not enacted as part of the Shipping Act, 1916, which
    comprises this chapter.

-End-

-CITE-
    46 USC APPENDIX Sec. 811                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 23 - SHIPPING ACT

-HEAD-
    Sec. 811. Investigations as to cost of merchant vessels

-STATUTE-
      The Secretary of Transportation shall investigate the relative
    cost of building merchant vessels in the United States and in
    foreign maritime countries, and the relative cost, advantages, and
    disadvantages of operating in the foreign trade vessels under
    United States registry and under foreign registry. The Secretary
    shall examine the rules under which vessels are constructed abroad
    and in the United States, and the methods of classifying and rating
    same, and the Secretary shall examine into the subject of marine
    insurance, the number of companies in the United States, domestic
    and foreign, engaging in marine insurance, the extent of the
    insurance on hulls and cargoes placed or written in the United
    States, and the extent of reinsurance of American maritime risks in
    foreign companies, and ascertain what steps may be necessary to
    develop an ample marine insurance system as an aid in the
    development of an American merchant marine. The Secretary shall
    examine the navigation laws of the United States and the rules and
    regulations thereunder, and make such recommendations to the
    Congress as the Secretary deems proper for the amendment,
    improvement, and revision of such laws, and for the development of
    the American merchant marine. The Secretary shall investigate the
    legal status of mortgage loans on vessel property, with a view to
    means of improving the security of such loans and of encouraging
    investment in American shipping.
      The Secretary shall, on or before the 1st day of December in each
    year, make a report to the Congress, which shall include his
    recommendations and the results of his investigations, a summary of
    his transactions, and a statement of all expenditures and receipts
    under this chapter, and of the operations of any corporation in
    which the United States is a stockholder, and the names and
    compensation of all persons employed by the Secretary of
    Transportation.

-SOURCE-
    (Sept. 7, 1916, ch. 451, Sec. 12, 39 Stat. 732; Ex. Ord. No. 6166,
    Sec. 12, eff. June 10, 1933; June 29, 1936, ch. 858, title II, Sec.
    204, title IX, Sec. 904, 49 Stat. 1987, 2016; Pub. L. 97-31, Sec.
    12(27), Aug. 6, 1981, 95 Stat. 155.)

-MISC1-
                                AMENDMENTS                            
      1981 - Pub. L. 97-31 substituted "Secretary of Transportation"
    for "Commission", "The Secretary" for "It", "the Secretary" for
    "it", and "his" for "its" wherever appearing. For prior transfers
    of functions, see Transfer of Functions note below.

                                  REPEALS                              
      For provisional repeal, see note set out preceding section 801 of
    this Appendix.

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      "Commission", meaning United States Maritime Commission,
    substituted in text for "board", meaning United States Shipping
    Board. For dissolution of Board and transfer of functions to United
    States Maritime Commission, see Ex. Ord. No. 6166, and act June 29,
    1936. Ex. Ord. No. 6166 is set out as a note under section 901 of
    Title 5, Government Organization and Employees. For subsequent
    transfers of functions, see Reorg. Plan No. 6 of 1949, Reorg. Plan
    No. 21 of 1950, and Reorg. Plan No. 7 of 1961, set out under
    section 1111 of this Appendix.

-End-

-CITE-
    46 USC APPENDIX Sec. 817d                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 23 - SHIPPING ACT

-HEAD-
    Sec. 817d. Financial responsibility of owners and charterers for
      death or injury to passengers or other persons

-STATUTE-
    (a) Amount; method of establishment
      Each owner or charterer of an American or foreign vessel having
    berth or stateroom accommodations for fifty or more passengers, and
    embarking passengers at United States ports, shall establish, under
    regulations prescribed by the Federal Maritime Commission, his
    financial responsibility to meet any liability he may incur for
    death or injury to passengers or other persons on voyages to or
    from United States ports, in an amount based upon the number of
    passenger accommodations aboard the vessel, calculated as follows:
        $20,000 for each passenger accommodation up to and including
      five hundred; plus
        $15,000 for each additional passenger accommodation between
      five hundred and one and one thousand; plus
        $10,000 for each additional passenger accommodation between one
      thousand and one and one thousand five hundred; plus
        $5,000 for each passenger accommodation in excess of one
      thousand five hundred:

    Provided, however, That if such owner or charterer is operating
    more than one vessel subject to this section, the foregoing amount
    shall be based upon the number of passenger accommodations on the
    vessel being so operated which has the largest number of passenger
    accommodations. This amount shall be available to pay any judgment
    for damages, whether in amount less than or more than $20,000 for
    death or injury occurring on such voyages to any passenger or other
    person. Such financial responsibility may be established by any one
    of, or a combination of, the following methods which is acceptable
    to the Commission: (1) policies of insurance, (2) surety bonds, (3)
    qualifications as a self-insurer, or (4) other evidence of
    financial responsibility.
    (b) Issuance of bond when filed with Commission
      If a bond is filed with the Commission, then such bond shall be
    issued by a bonding company authorized to do business in the United
    States or any State thereof or the District of Columbia, the
    Commonwealth of Puerto Rico, the Virgin Islands, or any territory
    or possession of the United States.
    (c) Civil penalties for violations; remission or mitigation of
      penalties
      Any person who shall violate this section shall be subject to a
    civil penalty of not more than $5,000 in addition to a civil
    penalty of $200 for each passage sold, such penalties to be
    assessed by the Federal Maritime Commission. These penalties may be
    remitted or mitigated by the Federal Maritime Commission upon such
    terms as it in its discretion shall deem proper.
    (d) Rules and regulations
      The Federal Maritime Commission is authorized to prescribe such
    regulations as may be necessary to carry out the provisions of this
    section. The provisions of the Shipping Act of 1984 [46 App. U.S.C.
    1701 et seq.] shall apply with respect to proceedings conducted by
    the Commission under this section.
    (e) Refusal of departure clearance
      At the port or place of departure from the United States of any
    vessel described in subsection (a) of this section, the Customs
    Service shall refuse the clearance required by section 91 of this
    Appendix to any such vessel which does not have evidence furnished
    by the Federal Maritime Commission that the provisions of this
    section have been complied with.

-SOURCE-
    (Pub. L. 89-777, Sec. 2, Nov. 6, 1966, 80 Stat. 1356; Pub. L. 103-
    182, title VI, Sec. 689(c), Dec. 8, 1993, 107 Stat. 2222; Pub. L.
    104-324, title VII, Sec. 746(c)(1), Oct. 19, 1996, 110 Stat. 3943;
    Pub. L. 105-258, title III, Sec. 302(a), Oct. 14, 1998, 112 Stat.
    1916.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Shipping Act of 1984, referred to in subsec. (d), is Pub. L.
    98-237, Mar. 20, 1984, 98 Stat. 67, as amended, which is classified
    principally to chapter 36 (Sec. 1701 et seq.) of this Appendix. For
    complete classification of this Act to the Code, see Short Title
    note set out under section 1701 of this Appendix and Tables.

-COD-
                               CODIFICATION                           
      Section was not enacted as part of the Shipping Act, 1916, which
    comprises this chapter.

-MISC1-
                                AMENDMENTS                            
      1998 - Subsec. (c). Pub. L. 105-258 substituted "it in its
    discretion" for "they in their discretion".
      1996 - Subsec. (d). Pub. L. 104-324 substituted reference to
    Shipping Act of 1984 for reference to this chapter.
      1993 - Subsec. (e). Pub. L. 103-182 substituted "At the port" for
    "The collector of customs at the port" and inserted ", the Customs
    Service" after "subsection (a) of this section".

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Amendment by Pub. L. 105-258 effective May 1, 1999, see section 2
    of Pub. L. 105-258, set out as a note under section 1701 of this
    Appendix.

                     EFFECTIVE DATE OF 1996 AMENDMENT                 
      Section 746(c) of Pub. L. 104-324 provided that the amendment
    made by that section is effective Sept. 30, 1996.

                              EFFECTIVE DATE                          
      Section 5 of Pub. L. 89-777 provided in part that this section is
    effective 9 months after Nov. 6, 1966.

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      For transfer of functions, personnel, assets, and liabilities of
    the United States Customs Service of the Department of the
    Treasury, including functions of the Secretary of the Treasury
    relating thereto, to the Secretary of Homeland Security, and for
    treatment of related references, see sections 203(1), 551(d),
    552(d), and 557 of Title 6, Domestic Security, and the Department
    of Homeland Security Reorganization Plan of November 25, 2002, as
    modified, set out as a note under section 542 of Title 6.
      All offices of collector of customs, comptroller of customs,
    surveyor of customs, and appraiser of merchandise in Bureau of
    Customs of Department of the Treasury to which appointments were
    required to be made by President with advice and consent of Senate
    ordered abolished with such offices to be terminated not later than
    Dec. 31, 1966, by Reorg. Plan No. 1 of 1965, eff. May 25, 1965, 30
    F.R. 7035, 79 Stat. 1317, set out in the Appendix to Title 5,
    Government Organization and Employees. All functions of offices
    eliminated were already vested in Secretary of the Treasury by
    Reorg. Plan No. 26 of 1950, eff. July 31, 1950, 15 F.R. 4935, 64
    Stat. 1280, set out in the Appendix to Title 5.

-End-

-CITE-
    46 USC APPENDIX Sec. 817e                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 23 - SHIPPING ACT

-HEAD-
    Sec. 817e. Financial responsibility for indemnification of
      passengers for nonperformance of transportation

-STATUTE-
    (a) Filing of information or bond with Commission
      No person in the United States shall arrange, offer, advertise,
    or provide passage on a vessel having berth or stateroom
    accommodations for fifty or more passengers and which is to embark
    passengers at United States ports without there first having been
    filed with the Federal Maritime Commission such information as the
    Commission may deem necessary to establish the financial
    responsibility of the person arranging, offering, advertising, or
    providing such transportation, or in lieu thereof a copy of a bond
    or other security, in such form as the Commission, by rule or
    regulation, may require and accept, for indemnification of
    passengers for nonperformance of the transportation.
    (b) Issuance of bond when filed with Commission; amount of bond
      If a bond is filed with the Commission, such bond shall be issued
    by a bonding company authorized to do business in the United States
    or any State thereof, or the District of Columbia, the Commonwealth
    of Puerto Rico, the Virgin Islands or any territory or possession
    of the United States.
    (c) Civil penalties for violations; remission or mitigation of
      penalties
      Any person who shall violate this section shall be subject to a
    civil penalty of not more than $5,000 in addition to a civil
    penalty of $200 for each passage sold, such penalties to be
    assessed by the Federal Maritime Commission. These penalties may be
    remitted or mitigated by the Federal Maritime Commission upon such
    terms as it in its discretion shall deem proper.
    (d) Rules and regulations
      The Federal Maritime Commission is authorized to prescribe such
    regulations as may be necessary to carry out the provisions of this
    section. The provisions of the Shipping Act of 1984 [46 App. U.S.C.
    1701 et seq.] shall apply with respect to proceedings conducted by
    the Commission under this section.
    (e) Refusal of departure clearance
      At the port or place of departure from the United States of any
    vessel described in subsection (a) of this section, the Customs
    Service shall refuse the clearance required by section 91 of this
    Appendix to any such vessel which does not have evidence furnished
    by the Federal Maritime Commission that the provisions of this
    section have been complied with.

-SOURCE-
    (Pub. L. 89-777, Sec. 3, Nov. 6, 1966, 80 Stat. 1357; Pub. L. 103-
    182, title VI, Sec. 689(c), Dec. 8, 1993, 107 Stat. 2222; Pub. L.
    103-206, title III, Sec. 320, Dec. 20, 1993, 107 Stat. 2427; Pub.
    L. 104-324, title VII, Sec. 746(c)(2), Oct. 19, 1996, 110 Stat.
    3943; Pub. L. 105-258, title III, Sec. 302(a), Oct. 14, 1998, 112
    Stat. 1916.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Shipping Act of 1984, referred to in subsec. (d), is Pub. L.
    98-237, Mar. 20, 1984, 98 Stat. 67, as amended, which is classified
    principally to chapter 36 (Sec. 1701 et seq.) of this Appendix. For
    complete classification of this Act to the Code, see Short Title
    note set out under section 1701 of this Appendix and Tables.

-COD-
                               CODIFICATION                           
      Section was not enacted as part of the Shipping Act, 1916, which
    comprises this chapter.

-MISC1-
                                AMENDMENTS                            
      1998 - Subsec. (c). Pub. L. 105-258 substituted "it in its
    discretion" for "they in their discretion".
      1996 - Subsec. (d). Pub. L. 104-324 substituted reference to
    Shipping Act of 1984 for reference to this chapter.
      1993 - Subsec. (b). Pub. L. 103-206 struck out before period at
    end "and such bond or other security shall be in an amount paid
    equal to the estimated total revenue for the particular
    transportation".
      Subsec. (e). Pub. L. 103-182 substituted "At the port" for "The
    collector of customs at the port" and inserted ", the Customs
    Service" after "subsection (a) of this section".

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Amendment by Pub. L. 105-258 effective May 1, 1999, see section 2
    of Pub. L. 105-258, set out as a note under section 1701 of this
    Appendix.

                     EFFECTIVE DATE OF 1996 AMENDMENT                 
      Section 746(c) of Pub. L. 104-324 provided that the amendment
    made by that section is effective Sept. 30, 1996.

                              EFFECTIVE DATE                          
      Section 5 of Pub. L. 89-777 provided in part that this section is
    effective 180 days after Nov. 6, 1966.

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      For transfer of functions, personnel, assets, and liabilities of
    the United States Customs Service of the Department of the
    Treasury, including functions of the Secretary of the Treasury
    relating thereto, to the Secretary of Homeland Security, and for
    treatment of related references, see sections 203(1), 551(d),
    552(d), and 557 of Title 6, Domestic Security, and the Department
    of Homeland Security Reorganization Plan of November 25, 2002, as
    modified, set out as a note under section 542 of Title 6.
      All offices of collector of customs, comptroller of customs,
    surveyor of customs, and appraiser of merchandise in Bureau of
    Customs of Department of the Treasury to which appointments were
    required to be made by President with advice and consent of Senate
    ordered abolished with such offices to be terminated not later than
    Dec. 31, 1966, by Reorg. Plan No. 1 of 1965, eff. May 25, 1965, 30
    F.R. 7035, 79 Stat. 1317, set out in the Appendix to Title 5,
    Government Organization and Employees. All functions of offices
    eliminated were already vested in Secretary of the Treasury by
    Reorg. Plan No. 26 of 1950, eff. July 31, 1950, 15 F.R. 4935, 64
    Stat. 1280, set out in the Appendix to Title 5.

-End-

-CITE-
    46 USC APPENDIX Sec. 833                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 23 - SHIPPING ACT

-HEAD-
    Sec. 833. Partial invalidity of chapter as not affecting remainder

-STATUTE-
      If any provision of this chapter, or the application of such
    provision to certain circumstance, is held unconstitutional, the
    remainder of the chapter, and the application of such provision to
    circumstances other than those as to which it is held
    unconstitutional, shall not be affected thereby.

-SOURCE-
    (Sept. 7, 1916, ch. 451, Sec. 34, 39 Stat. 738.)

-MISC1-
                                  REPEALS                              
      For provisional repeal, see note set out preceding section 801 of
    this Appendix.

-End-

-CITE-
    46 USC APPENDIX Sec. 834                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 23 - SHIPPING ACT

-HEAD-
    Sec. 834. Refusal of clearance to vessel refusing to accept freight

-STATUTE-
      The Secretary of the Treasury is authorized to refuse a clearance
    to any vessel or other vehicle laden with merchandise destined for
    a foreign or domestic port whenever he shall have satisfactory
    reason to believe that the master, owner, or other officer of such
    vessel or other vehicle refuses or declines to accept or receive
    freight or cargo in good condition tendered for such port of
    destination or for some intermediate port of call, together with
    the proper freight or transportation charges therefor, by any
    citizen of the United States, unless the same is fully laden and
    has no space accommodations for the freight or cargo so tendered,
    due regard being had for the proper loading of such vessel or
    vehicle, or unless such freight or cargo consists of merchandise
    for which such vessel or vehicle is not adaptable.

-SOURCE-
    (Sept. 7, 1916, ch. 451, Sec. 36, 39 Stat. 738.)

-MISC1-
                                  REPEALS                              
      For provisional repeal, see note set out preceding section 801 of
    this Appendix.

-End-

-CITE-
    46 USC APPENDIX Sec. 835                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 23 - SHIPPING ACT

-HEAD-
    Sec. 835. Restrictions on transfer of shipping facilities during
      war or national emergency

-STATUTE-
      When the United States is at war or during any national
    emergency, the existence of which is declared by proclamation of
    the President, it shall be unlawful, without first obtaining the
    approval of the Secretary of Transportation:
      (a) To transfer to or place under any foreign registry or flag
    any vessel owned in whole or in part by any person a citizen of the
    United States or by a corporation organized under the laws of the
    United States, or of any State, Territory, District, or possession
    thereof; or
      (b) To sell, mortgage, lease, charter, deliver, or in any manner
    transfer, or agree to sell, mortgage, lease, charter, deliver, or
    in any manner transfer, to any person not a citizen of the United
    States, (1) any such vessel or any interest therein, or (2) any
    vessel documented under the laws of the United States, or any
    interest therein, or (3) any shipyard, dry dock, shipbuilding or
    ship-repairing plant or facilities, or any interest therein; or
      (c) To issue, transfer, or assign a bond, note, or other evidence
    of indebtedness which is secured by a mortgage of a vessel to a
    trustee or by an assignment to a trustee of the owner's right,
    title, or interest in a vessel under construction, or by a mortgage
    to a trustee on a shipyard, drydock, or shipbuilding or ship-
    repairing plant or facilities, to a person not a citizen of the
    United States, unless the trustee or a substitute trustee of such
    mortgage or assignment is approved by the Secretary of
    Transportation: Provided, however, That the Secretary of
    Transportation shall grant his approval if such trustee or a
    substitute trustee is a bank or trust company which (1) is
    organized as a corporation, and is doing business, under the laws
    of the United States or any State thereof, (2) is authorized under
    such laws to exercise corporate trust powers, (3) is a citizen of
    the United States, (4) is subject to supervision or examination by
    Federal or State authority, and (5) has a combined capital and
    surplus (as set forth in its most recent published report of
    condition) of at least $3,000,000; or for the trustee or substitute
    trustee approved by the Secretary of Transportation to operate said
    vessel under the mortgage or assignment: Provided further, That if
    such trustee or a substitute trustee at any time ceases to meet the
    foregoing qualifications, the Secretary of Transportation, shall
    disapprove such trustee or substitute trustee, and after such
    disapproval the transfer or assignment of such bond, note, or other
    evidence of indebtedness to a person not a citizen of the United
    States, without the approval of the Secretary of Transportation,
    shall be unlawful; or
      (d) To enter into any contract agreement, or understanding to
    construct a vessel within the United States for or to be delivered
    to any person not a citizen of the United States, without expressly
    stipulating that such construction shall not begin until after the
    war or emergency proclaimed by the President has ended; or
      (e) To make any agreement or effect any understanding whereby
    there is vested in or for the benefit of any person not a citizen
    of the United States, the controlling interest or a majority of the
    voting power in a corporation which is organized under the laws of
    the United States, or of any State, Territory, District, or
    possession thereof, and which owns any vessel, shipyard, drydock,
    or shipbuilding, or ship-repairing plant or facilities; or
      (f) To cause or procure any vessel constructed in whole or in
    part within the United States, which has never cleared for any
    foreign port, to depart from a port of the United States before it
    has been documented under the laws of the United States.
      Whoever violates, or attempts or conspires to violate, any of the
    provisions of this section shall be guilty of a misdemeanor,
    punishable by a fine of not more than $5,000 or by imprisonment for
    not more than five years, or both.
      If a bond, note, or other evidence of indebtedness which is
    secured by a mortgage of a vessel to a trustee or by an assignment
    to a trustee of the owner's right, title, or interest in a vessel
    under construction, or by a mortgage to a trustee on a shipyard,
    drydock or ship-building or ship-repairing plant or facilities, is
    issued, transferred, or assigned to a person not a citizen of the
    United States in violation of subsection (c) of this section, the
    issuance, transfer or assignment shall be void.
      Any vessel, shipyard, drydock, ship-building or ship-repairing
    plant or facilities, or interest therein, sold, mortgaged, leased,
    chartered, delivered, transferred, or documented, or agreed to be
    sold, mortgaged, leased, chartered, delivered, transferred, or
    documented, in violation of any of the provisions of this section,
    and any stocks, bonds, or other securities sold or transferred, or
    agreed to be sold or transferred, in violation of any of such
    provisions, or any vessel departing in violation of the provisions
    of subsection (e) (!1) of this section, shall be forfeited to the
    United States.

      Any such sale, mortgage, lease, charter, delivery, transfer,
    documentation, or agreement therefor shall be void, whether made
    within or without the United States, and any consideration paid
    therefor or deposited in connection therewith shall be recoverable
    at the suit of the person who has paid or deposited the same, or of
    his successors or assigns, after the tender of such vessel,
    shipyard, drydock, shipbuilding or ship-repairing plant or
    facilities, or interest therein, or of such stocks, bonds, or other
    securities, to the person entitled thereto, or after forfeiture
    thereof to the United States, unless the person to whom the
    consideration was paid, or in whose interest it was deposited,
    entered into the transaction in the honest belief that the person
    who paid or deposited such consideration was a citizen of the
    United States.

-SOURCE-
    (Sept. 7, 1916, ch. 451, Sec. 37, as added July 15, 1918, ch. 152,
    Sec. 4, 40 Stat. 901; amended Ex. Ord. No. 6166, Sec. 12, eff. June
    10, 1933; June 29, 1936, ch. 858, title II, Sec. 204, title IX,
    Sec. 904, 49 Stat. 1987, 2016; Pub. L. 89-346, Sec. 2, Nov. 8,
    1965, 79 Stat. 1306; Pub. L. 97-31, Sec. 12(30), Aug. 6, 1981, 95
    Stat. 156.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Subsection (e) of this section, referred to in penultimate par.,
    was redesignated subsection (f) of this section by Pub. L. 89-346
    without amendment to said paragraph to reflect such redesignation.

-MISC1-
                                AMENDMENTS                            
      1981 - Pub. L. 97-31 substituted "Secretary of Transportation"
    for "Commission" in introductory par., and for "Secretary of
    Commerce" in five places in subsec. (c). For prior transfers of
    functions, see Transfer of Functions note below.
      1965 - Subsecs. (c) to (f). Pub. L. 89-346, Sec. 2(a), added
    subsec. (c) and redesignated former subsecs. (c) to (e) as (d) to
    (f), respectively.
      Pub. L. 89-346, Sec. 2(b), inserted provisions voiding the
    issuance, transfer or assignment of bonds, notes, or other
    evidences of indebtedness which are secured by a mortgage of a
    vessel to a trustee or by an assignment to a trustee of the owner's
    right, title, or interest in a vessel under construction, or by a
    mortgage to a trustee on a shipyard, drydock or ship-building or
    ship-repairing plant or facilities, if such issuance, transfer or
    assignment is made in violation of subsec. (c) of this section.

                                  REPEALS                              
      For provisional repeal, see note set out preceding section 801 of
    this Appendix.

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      In introductory par., "Commission", meaning United States
    Maritime Commission, substituted for "board", meaning United States
    Shipping Board. For dissolution of Board and transfer of functions
    to United States Maritime Commission, see Ex. Ord. No. 6166 and act
    June 29, 1936. Ex. Ord. No. 6166 is set out as a note under section
    901 of Title 5, Government Organization and Employees. For
    subsequent transfers of functions, see Reorg. Plan No. 6 of 1949
    and Reorg. Plan No. 21 of 1950, set out under section 1111 of this
    Appendix.

-MISC2-
                         NATIONAL EMERGENCY, 1950                     
      For Presidential Proclamation of the existence of a national
    emergency, see Proc. No. 2914, eff. Dec. 16, 1950, 15 F.R. 9029, 64
    Stat. 454, set out as a note preceding section 1 of Title 50,
    Appendix, War and National Defense.

                    TERMINATION OF WAR AND EMERGENCIES                
      Joint Res. July 25, 1947, ch. 327, Sec. 3, 61 Stat. 451, provided
    that in the interpretation of this section, the date July 25, 1947,
    shall be deemed to be the date of termination of any state of war
    theretofore declared by Congress and of the national emergencies
    proclaimed by the President on Sept. 8, 1939, and May 27, 1941.

-FOOTNOTE-
    (!1) See References in Text note below.

-End-

-CITE-
    46 USC APPENDIX Sec. 836                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 23 - SHIPPING ACT

-HEAD-
    Sec. 836. Forfeitures

-STATUTE-
      All forfeitures incurred under the provisions of this chapter may
    be prosecuted in the same court, and may be disposed of in the same
    manner, as forfeitures incurred for offenses against the law
    relating to the collection of duties, except that forfeitures may
    be remitted without seizure of the vessel.

-SOURCE-
    (Sept. 7, 1916, ch. 451, Sec. 38, as added July 15, 1918, ch. 152,
    Sec. 4, 40 Stat. 902; amended Pub. L. 101-225, title III, Sec.
    304(b), Dec. 12, 1989, 103 Stat. 1924.)

-MISC1-
                                AMENDMENTS                            
      1989 - Pub. L. 101-225 substituted "duties, except that
    forfeitures may be remitted without seizure of the vessel" for
    "duties".

                                  REPEALS                              
      For provisional repeal, see note set out preceding section 801 of
    this Appendix.

                         NATIONAL EMERGENCY, 1950                     
      For Presidential Proclamation of the existence of a national
    emergency, see Proc. No. 2914, eff. Dec. 16, 1950, 15 F.R. 9029, 64
    Stat. 454, set out as a note preceding section 1 of Title 50,
    Appendix, War and National Defense.

                    TERMINATION OF WAR AND EMERGENCIES                
      Joint Res. July 25, 1947, ch. 327, Sec. 3, 61 Stat. 451, provided
    that in the interpretation of this section, the date July 25, 1947,
    shall be deemed to be the date of termination of any state of war
    theretofore declared by Congress and of the national emergencies
    proclaimed by the President on Sept. 8, 1939, and May 27, 1941.

-End-

-CITE-
    46 USC APPENDIX Sec. 837                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 23 - SHIPPING ACT

-HEAD-
    Sec. 837. Prima facie evidence

-STATUTE-
      In any action or proceeding under the provisions of this chapter
    to enforce a forfeiture the conviction in a court of criminal
    jurisdiction of any person for a violation thereof with respect to
    the subject of the forfeiture shall constitute prima facie evidence
    of such violation against the person so convicted.

-SOURCE-
    (Sept. 7, 1916, ch. 451, Sec. 39, as added July 15, 1918, ch. 152,
    Sec. 4, 40 Stat. 902.)

-MISC1-
                                  REPEALS                              
      For provisional repeal, see note set out preceding section 801 of
    this Appendix.

                         NATIONAL EMERGENCY, 1950                     
      For Presidential Proclamation of the existence of a national
    emergency, see Proc. No. 2914, eff. Dec. 16, 1950, 15 F.R. 9029, 64
    Stat. 454, set out as a note preceding section 1 of Title 50,
    Appendix, War and National Defense.

                    TERMINATION OF WAR AND EMERGENCIES                
      Joint Res. July 25, 1947, ch. 327, Sec. 3, 61 Stat. 451, provided
    that in the interpretation of this section, the date July 25, 1947,
    shall be deemed to be the date of termination of any state of war
    theretofore declared by Congress and of the national emergencies
    proclaimed by the President on Sept. 8, 1939, and May 27, 1941.

-End-

-CITE-
    46 USC APPENDIX Sec. 839                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 23 - SHIPPING ACT

-HEAD-
    Sec. 839. Approvals by Secretary

-STATUTE-
      Whenever by section 808 or 835 of this Appendix the approval of
    the Secretary of Transportation is required to render any act or
    transaction lawful, such approval may be accorded either absolutely
    or upon such conditions as the Secretary of Transportation
    prescribes. Whenever the approval of the Secretary of
    Transportation is accorded upon any condition a statement of such
    condition shall be entered upon his records and incorporated in the
    same document or paper which notifies the applicant of such
    approval. A violation of such condition so incorporated shall
    constitute a misdemeanor and shall be punishable by fine and
    imprisonment in the same manner, and shall subject the vessel,
    stocks, bonds, or other subject matter of the application
    conditionally approved to forfeiture in the same manner, as though
    the act conditionally approved had been done without the approval
    of the Secretary of Transportation, but the offense shall be deemed
    to have been committed at the time of the violation of the
    condition.
      Whenever by this chapter the approval of the Secretary of
    Transportation is required to render any act or transaction lawful,
    whoever knowingly makes any false statement of a material fact to
    the Secretary of Transportation, or to any officer, attorney, or
    agent of the Department of Transportation, for the purpose of
    securing such approval, shall be guilty of a misdemeanor and
    subject to a fine of not more than $5,000, or to imprisonment for
    not more than five years, or both.

-SOURCE-
    (Sept. 7, 1916, ch. 451, Sec. 41, as added July 15, 1918, ch. 152,
    Sec. 4, 40 Stat. 902; amended Ex. Ord. No. 6166, Sec. 12, eff. June
    10, 1933; June 29, 1936, ch. 858, title II, Sec. 204, title IX,
    Sec. 904, 49 Stat. 1987, 2016; Pub. L. 97-31, Sec. 12(32), Aug. 6,
    1981, 95 Stat. 156.)

-MISC1-
                                AMENDMENTS                            
      1981 - Pub. L. 97-31 substituted "Secretary of Transportation"
    for "Commission" and "his" for "its" and, in view of this
    amendment, "or to any officer, attorney, or agent of the Department
    of Transportation" were editorially substituted in second paragraph
    for "or to any member thereof, or to any officer, attorney, or
    agent thereof". For prior transfers of functions, see Transfer of
    Functions note below.

                                  REPEALS                              
      For provisional repeal, see note set out preceding section 801 of
    this Appendix.

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      "Commission", meaning United States Maritime Commission,
    substituted in text for "board", meaning United States Shipping
    Board. For dissolution of Board and transfer of functions to United
    States Maritime Commission, see Ex. Ord. No. 6166 and act June 29,
    1936. Ex. Ord. No. 6166 is set out as a note under section 901 of
    Title 5, Government Organization and Employees. For subsequent
    transfers of functions, see Reorg. Plan No. 6 of 1949, Reorg. Plan
    No. 21 of 1950, and Reorg. Plan No. 7 of 1961, set out under
    section 1111 of this Appendix.

-MISC2-
                         NATIONAL EMERGENCY, 1950                     
      For Presidential Proclamation of the existence of a national
    emergency, see Proc. No. 2914, eff. Dec. 16, 1950, 15 F.R. 9029, 64
    Stat. 454, set out as a note preceding section 1 of Title 50,
    Appendix, War and National Defense.

                    TERMINATION OF WAR AND EMERGENCIES                
      Joint Res. July 25, 1947, ch. 327, Sec. 3, 61 Stat. 451, provided
    that in the interpretation of this section, the date July 25, 1947,
    shall be deemed to be the date of termination of any state of war
    theretofore declared by Congress and of the national emergencies
    proclaimed by the President on Sept. 8, 1939, and May 27, 1941.

-End-

-CITE-
    46 USC APPENDIX Sec. 842                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 23 - SHIPPING ACT

-HEAD-
    Sec. 842. Short title

-STATUTE-
      This chapter may be cited as "Shipping Act, 1916."

-SOURCE-
    (Sept. 7, 1916, ch. 451, Sec. 46, formerly Sec. 44, as added July
    15, 1918, ch. 152, Sec. 4, 40 Stat. 903, renumbered Sec. 45, Pub.
    L. 87-254, Sec. 2, Sept. 19, 1961, 75 Stat. 522, and renumbered
    Sec. 46, Pub. L. 96-325, Sec. 5, Aug. 8, 1980, 94 Stat. 1022.)

-MISC1-
                       SHORT TITLE OF 1980 AMENDMENT                   
      Section 1 of Pub. L. 96-325 provided: "That this Act [enacting
    section 841c of this Appendix, amending sections 801 and 814 of
    this Appendix, and enacting a provision set out as a note under
    section 841c of this Appendix] may be cited as the 'Maritime Labor
    Agreements Act of 1980'."

                       SHORT TITLE OF 1979 AMENDMENT                   
      Pub. L. 96-25, Sec. 1, June 19, 1979, 93 Stat. 71, provided:
    "That this Act [amending sections 815, 817, 820, 821, 822, 826,
    828, 829, and 831 of this Appendix and enacting provisions set out
    as a note under section 815 of this Appendix] may be cited as the
    'Shipping Act Amendments of 1979'."

                       SHORT TITLE OF 1978 AMENDMENT                   
      Pub. L. 95-483, Sec. 1, Oct. 18, 1978, 92 Stat. 1607, provided:
    "That this Act [amending sections 801 and 817 of this Appendix and
    enacting provision set out as a note under section 801 of this
    Appendix] may be cited as the 'Ocean Shipping Act of 1978'."

                                  REPEALS                              
      For provisional repeal, see note set out preceding section 801 of
    this Appendix.

-End-

-CITE-
    46 USC APPENDIX CHAPTER 24 - MERCHANT MARINE
           ACT, 1920                                       01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 24 - MERCHANT MARINE ACT, 1920

-HEAD-
                  CHAPTER 24 - MERCHANT MARINE ACT, 1920              

-MISC1-
    Sec.                                                     
    861.        Purpose and policy of United States.                  
    864a.       Purchase allowance in sale of vessels for cost of
                 putting vessels in class.                            
    864b.       Elements considered in sale of vessels in
                 determination of selling price.                      
    865.        Sale to aliens.                                       
    865a.       Sale of inactive passenger vessels to foreigners;
                 conditions; requisition in emergency; surety bond.   
    866.        Establishment and operation of steamship lines between
                 ports of United States.                              
    867.        Investigation of port, terminal, and warehouse
                 facilities.                                          
    868.        Vessels sold under deferred payment plan; insurance.  
    869.        Creation of fund for insurance of interests of United
                 States.                                              
    871.        Repair and operation of vessels until sale.           
    872.        Sale of property other than vessels.                  
    875.        Possession and control of terminal equipment and
                 facilities.                                          
    876.        Power of Secretary and Commission to make rules and
                 regulations.                                         
                  (a)  In general.                                    
                  (b)  Approval and final action.                     
                  (c)  Submission of facts to President.              
                  (d)  Prohibition against preference.                
                  (e)  Motion or petition.                            
                  (f)  Filing of information.                         
                  (g)  Discovery; witnesses; evidence.                
                  (h)  Disclosure to public.                          
                  (i)  Finding of unfavorable conditions.             
                  (j)  Refusal of clearance and denial of entry.      
                  (k)  Operation under suspended tariff or service
                        contract.                                     
                  (l)  Consultation with other agencies.              
    877.        Coastwise laws extended to island Territories and
                 possessions.                                         
    883.        Transportation of merchandise between points in United
                 States in other than domestic built or rebuilt and
                 documented vessels; incineration of hazardous waste
                 at sea.                                              
    883-1.      Corporation as citizen; fisheries and transportation
                 of merchandise or passengers between points in United
                 States; parent and subsidiary corporations; domestic
                 built vessels; certificate; surrender of documents on
                 change in status.                                    
    883a.       Reports required of United States vessels rebuilt
                 abroad; penalty for failure to report; mitigation of
                 penalty.                                             
    883b.       Regulations.                                          
    884.        Charges for transportation subject to interstate
                 transportation provisions.                           
    885.        Association of marine insurance companies; application
                 of antitrust laws.                                   
    887.        Partial invalidity.                                   
    888.        Definitions.                                          
    889.        Short title.                                          

-End-

-CITE-
    46 USC APPENDIX Sec. 861                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 24 - MERCHANT MARINE ACT, 1920

-HEAD-
    Sec. 861. Purpose and policy of United States

-STATUTE-
      It is necessary for the national defense and for the proper
    growth of its foreign and domestic commerce that the United States
    shall have a merchant marine of the best equipped and most suitable
    types of vessels sufficient to carry the greater portion of its
    commerce and serve as a naval or military auxiliary in time of war
    or national emergency, ultimately to be owned and operated
    privately by citizens of the United States; and it is declared to
    be the policy of the United States to do whatever may be necessary
    to develop and encourage the maintenance of such a merchant marine,
    and, insofar as may not be inconsistent with the express provisions
    of this Act, the Secretary of Transportation shall, in the
    disposition of vessels and shipping property as hereinafter
    provided, in the making of rules and regulations, and in the
    administration of the shipping laws keep always in view this
    purpose and object as the primary end to be attained.

-SOURCE-
    (June 5, 1920, ch. 250, Sec. 1, 41 Stat. 988; Ex. Ord. No. 6166,
    Sec. 12, eff. June 10, 1933; June 29, 1936, ch. 858, title II, Sec.
    204, title IX, Sec. 904, 49 Stat. 1987, 2016; Pub. L. 97-31, Sec.
    12(33), Aug. 6, 1981, 95 Stat. 156.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This Act, referred to in text, means act June 5, 1920, ch. 250,
    41 Stat. 988, as amended, known as the Merchant Marine Act, 1920,
    which (except for sections repealed or reenacted in Title 46,
    Shipping) is classified principally to this chapter. For complete
    classification of this Act to the Code, see section 889 of this
    Appendix and Tables.
      The shipping laws, referred to in text, are classified generally
    to Title 46, Shipping, and this Appendix.

-MISC1-
                                AMENDMENTS                            
      1981 - Pub. L. 97-31 substituted "Secretary of Transportation"
    for "United States Maritime Commission". For prior transfer of
    functions, see Transfer of Functions note below.

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      "United States Maritime Commission" substituted in text for
    "United States Shipping Board". For dissolution of Board and
    transfer of functions to Commission, see Ex. Ord. No. 6166 and act
    June 29, 1936. Ex. Ord. No. 6166 is set out as a note under section
    901 of Title 5, Government Organization and Employees. For
    subsequent transfers of functions, see Reorg. Plan No. 6 of 1949,
    Reorg. Plan No. 21 of 1950, and Reorg. Plan No. 7 of 1961, set out
    under section 1111 of this Appendix.

-End-

-CITE-
    46 USC APPENDIX Sec. 864a                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 24 - MERCHANT MARINE ACT, 1920

-HEAD-
    Sec. 864a. Purchase allowance in sale of vessels for cost of
      putting vessels in class

-STATUTE-
      On and after June 30, 1948, the Secretary of Transportation may
    make allowances to purchasers of vessels for cost of putting such
    vessels in class, such allowances to be determined on the basis of
    competitive bids, without regard to the provisions of the last
    paragraph of section 1736(d) (!1) of the Appendix to title 50.

-SOURCE-
    (June 30, 1948, ch. 775, Sec. 101, 62 Stat. 1199; Pub. L. 97-31,
    Sec. 12(35), Aug. 6, 1981, 95 Stat. 156.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 1736(d) of the Appendix to title 50, referred to in text,
    was repealed by Pub. L. 101-225, title III, Sec. 307(12), Dec. 12,
    1989, 103 Stat. 1925.

-COD-
                               CODIFICATION                           
      Section was enacted as part of The Supplemental Independent
    Offices Appropriation Act, 1949, act June 30, 1948, and not as part
    of the Merchant Marine Act, 1920, which comprises this chapter.

-MISC1-
                                AMENDMENTS                            
      1981 - Pub. L. 97-31 substituted "Secretary of Transportation"
    for "Commission", meaning the United States Maritime Commission.

-FOOTNOTE-
    (!1) See References in Text note below.

-End-

-CITE-
    46 USC APPENDIX Sec. 864b                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 24 - MERCHANT MARINE ACT, 1920

-HEAD-
    Sec. 864b. Elements considered in sale of vessels in determination
      of selling price

-STATUTE-
      On and after June 29, 1949, no sale of a vessel by the Maritime
    Administration of the Department of Transportation shall be
    completed until its ballast and equipment shall have been
    inventoried and their value taken into consideration by the
    Maritime Administration in determining the selling price.

-SOURCE-
    (June 29, 1949, ch. 281, Sec. 1, 63 Stat. 349; Pub. L. 97-31, Sec.
    12(36), Aug. 6, 1981, 95 Stat. 156.)

-COD-
                               CODIFICATION                           
      Section was not enacted as part of the Merchant Marine Act, 1920,
    which comprises this chapter.

-MISC1-
                                AMENDMENTS                            
      1981 - Pub. L. 97-31 substituted "Maritime Administration of the
    Department of Transportation" for "Maritime Commission" and
    "Maritime Administration" for "Commission", meaning United States
    Maritime Commission.

-End-

-CITE-
    46 USC APPENDIX Sec. 865                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 24 - MERCHANT MARINE ACT, 1920

-HEAD-
    Sec. 865. Sale to aliens

-STATUTE-
      The Secretary of Transportation is authorized and empowered to
    sell to aliens, at such prices and on such terms and conditions as
    he may determine, not inconsistent with the provisions of section 5
    (!1) (except that completion of the payment of the purchase price
    and interest shall not be deferred more than ten years after the
    making of the contract of sale), such vessels as he shall, after
    careful investigation, deem unnecessary to the promotion and
    maintenance of an efficient American merchant marine; but no such
    sale shall be made unless the Secretary of Transportation, after
    diligent effort, has been unable to sell, in accordance with the
    terms and conditions of section 5,(!1) such vessels to persons
    citizens of the United States, and has determined to make such
    sale; and he shall make as a part of his records a full statement
    of his reasons for making such sale. Deferred payments of purchase
    price of vessels under this section shall bear interest at the rate
    of not less than 5 1/2  per centum per annum, payable semiannually.

-SOURCE-
    (June 5, 1920, ch. 250, Sec. 6, 41 Stat. 991; Ex. Ord. No. 6166,
    Sec. 12, eff. June 10, 1933; June 29, 1936, ch. 858, title II, Sec.
    204, title IX, Sec. 904, 49 Stat. 1987, 2016; Pub. L. 97-31, Sec.
    12(37), Aug. 6, 1981, 95 Stat. 156.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 5, referred to in text, means section 5 of act June 5,
    1920, which was classified to section 864 of former Title 46,
    Shipping, and was repealed by Pub. L. 100-710, title II, Sec.
    202(4), Nov. 23, 1988, 102 Stat. 4753.

-MISC1-
                                AMENDMENTS                            
      1981 - Pub. L. 97-31 substituted "Secretary of Transportation"
    for "Commission" in two places, "he" for "it" in three places, and
    "his" for "its" in two places, and struck out "upon an affirmative
    vote of not less than five of its members, spread upon the minutes
    of the board," before "determined to make such sale". For prior
    transfers of functions, see Transfer of Functions note below.

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      "Commission", meaning United States Maritime Commission,
    substituted in text for "board", meaning United States Shipping
    Board. For dissolution of Board and transfer of functions to United
    States Maritime Commission, see Ex. Ord. No. 6166 and act June 29,
    1936. Ex. Ord. No. 6166 is set out as a note under section 901 of
    Title 5, Government Organization and Employees. For subsequent
    transfers of functions, see Reorg. Plan No. 6 of 1949, Reorg. Plan
    No. 21 of 1950, and Reorg. Plan No. 7 of 1961, set out under
    section 1111 of this Appendix.

-FOOTNOTE-
    (!1) See References in Text note below.

-End-

-CITE-
    46 USC APPENDIX Sec. 865a                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 24 - MERCHANT MARINE ACT, 1920

-HEAD-
    Sec. 865a. Sale of inactive passenger vessels to foreigners;
      conditions; requisition in emergency; surety bond

-STATUTE-
      Notwithstanding any other provision of law or of prior contract
    with the United States, any vessel heretofore operated as a
    passenger vessel, as defined in section 613(a) of the Merchant
    Marine Act, 1936, as amended [46 App. U.S.C. 1183(a)], under an
    operating-differential subsidy contract with the United States and
    now in inactive or layup status, except the steamship Independence
    and the steamship United States, may be sold and transferred to
    foreign ownership, registry, and flag, with the prior approval of
    the Secretary of Transportation. Such approval shall require (1)
    approval of the purchaser; (2) payment of existing debt and private
    obligations related to the vessel; (3) approval of the price,
    including terms of payment, for the sale of the vessel; (4) the
    seller to enter into an agreement with the Secretary whereby an
    amount equal to the net proceeds received from such sale in excess
    of existing obligations and expenses incident to the sale shall
    within a reasonable period not to exceed twelve months of receipt
    be committed and thereafter be used as equity capital for the
    construction of new vessels which the Secretary determines are
    built to effectuate the purposes and policy of the Merchant Marine
    Act, 1936, as amended [46 App. U.S.C. 1101 et seq.]; and (5) the
    purchaser to enter into an agreement with the Secretary, binding
    upon such purchaser and any later owner of the vessel and running
    with title to the vessel, that (a) the vessel will not carry
    passengers or cargo in competition, as determined by the Secretary,
    with any United States-flag passenger vessel for a period of two
    years from the date the transferred vessel goes into operation; (b)
    the vessel will be made available to the United States in time of
    emergency and just compensation for title or use; as the case may
    be, shall be paid in accordance with section 902 of the Merchant
    Marine Act, 1936, as amended (46 App. U.S.C. 1242); (c) the
    purchaser will comply with such further conditions as the Secretary
    may impose as authorized by sections 808, 835 and 839 of this
    Appendix; and (d) the purchaser will furnish a surety bond in an
    amount and with a surety satisfactory to the Secretary to secure
    performance of the foregoing agreements.
      In addition to any other provision such agreements may contain
    for enforcement of (4) and (5) above, the agreements therein
    required may be specifically enforced by decree for specific
    performance or injunction in any district court of the United
    States. In the agreement with the Secretary the purchaser shall
    irrevocably appoint a corporate agent within the United States for
    service of process upon such purchaser in any action to enforce the
    agreement.

-SOURCE-
    (Pub. L. 92-296, Sec. 1, May 16, 1972, 86 Stat. 140; Pub. L. 97-31,
    Sec. 12(38), Aug. 6, 1981, 95 Stat. 156.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Merchant Marine Act, 1936, referred to in text, is act June
    29, 1936, ch. 858, 49 Stat. 1985, as amended, which is classified
    principally to chapter 27 (Sec. 1101 et seq.) of this Appendix. For
    complete classification of this Act to the Code, see section 1245
    of this Appendix and Tables.

-COD-
                               CODIFICATION                           
      Section was not enacted as part of the Merchant Marine Act, 1920,
    which comprises this chapter.

-MISC1-
                                AMENDMENTS                            
      1981 - Pub. L. 97-31 substituted "Secretary of Transportation"
    for "Secretary of Commerce".

-End-

-CITE-
    46 USC APPENDIX Sec. 866                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 24 - MERCHANT MARINE ACT, 1920

-HEAD-
    Sec. 866. Establishment and operation of steamship lines between
      ports of United States

-STATUTE-
      Investigation and determination by Secretary - The Secretary of
    Transportation is authorized and directed to investigate and
    determine as promptly as possible after June 5, 1920, and from time
    to time thereafter what steamship lines should be established and
    put in operation from ports in the United States or any Territory,
    District, or possession thereof to such world and domestic markets
    as in his judgment are desirable for the promotion, development,
    expansion, and maintenance of the foreign and coastwise trade of
    the United States and an adequate postal service, and to determine
    the type, size, speed, and other requirements of the vessels to be
    employed upon such lines and the frequency and regularity of their
    sailings, with a view to furnishing adequate, regular, certain, and
    permanent service.
      Sale or charter of vessels - The Secretary of Transportation is
    authorized to sell, and if a satisfactory sale cannot be made, to
    charter such of the vessels referred to in section 863 of this
    Appendix or otherwise acquired by the Secretary of Transportation,
    as will meet these requirements to responsible persons who are
    citizens of the United States who agree to establish and maintain
    such lines upon such terms of payment and other conditions as the
    Secretary of Transportation may deem just and necessary to secure
    and maintain the service desired; and if any such steamship line is
    deemed desirable and necessary, and if no such citizen can be
    secured to supply such service by the purchase or charter of
    vessels on terms satisfactory to the Secretary of Transportation,
    the Secretary of Transportation shall operate vessels on such line
    until the business is developed so that such vessels may be sold on
    satisfactory terms and the service maintained, or unless it shall
    appear within a reasonable time that such line cannot be made self-
    sustaining.
      Preference in sales or charters - Preference in the sale or
    assignment of vessels for operation on such steamship lines shall
    be given to persons who are citizens of the United States who have
    the support, financial and otherwise, of the domestic communities
    primarily interested in such lines if the Secretary of
    Transportation is satisfied of the ability of such persons to
    maintain the service desired and proposed to be maintained, or to
    persons who are citizens of the United States who may then be
    maintaining a service from the port of the United States to or in
    the general direction of the world-market port to which the
    Secretary of Transportation has determined that such service should
    be established.
      Lines established by shipping board; continued operation - Where
    steamship lines and regular service had been established and were
    being maintained by ships of the United States Shipping Board on
    June 5, 1920, such lines and service shall be maintained by the
    Secretary of Commerce until, in the opinion of the Secretary, the
    maintenance thereof is unbusinesslike and against the public
    interests.
      Additional lines established by Secretary; rates and charges -
    Whenever the Secretary of Transportation shall determine, as
    provided in this Act, that trade conditions warrant the
    establishment of a service or additional service under Government
    administration where a service is already being given by persons,
    citizens of the United States, the rates and charges for such
    Government service shall not be less than the cost thereof,
    including a proper interest and depreciation charge on the value of
    Government vessels and equipment employed therein.

-SOURCE-
    (June 5, 1920, ch. 250, Sec. 7, 41 Stat. 991; May 22, 1928, ch.
    675, Sec. 414(b), 45 Stat. 696; Ex. Ord. No. 6166, Sec. 12, eff.
    June 10, 1933; June 29, 1936, ch. 858, title II, Sec. 204, title
    IX, Sec. 904, 49 Stat. 1987, 2016; 1950 Reorg. Plan No. 21, Sec.
    204, eff. May 24, 1950, 15 F.R. 3178, 64 Stat. 1276; Pub. L. 97-31,
    Sec. 12(39), Aug. 6, 1981, 95 Stat. 156.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This Act, referred to in text, means act June 5, 1920, ch. 250,
    41 Stat. 988, as amended, known as the Merchant Marine Act, 1920,
    which (except for sections repealed or reenacted in Title 46,
    Shipping) is classified principally to this chapter. For complete
    classification of this Act to the Code, see section 889 of this
    Appendix and Tables.
      Section 863 of this Appendix, referred to in text, was omitted
    from the Code.

-COD-
                               CODIFICATION                           
      United States Shipping Board, referred to in fourth undesignated
    par., dissolved and functions transferred to successive Federal
    agencies and departments. Secretary of Commerce, referred to in
    such par., exercised certain functions of Board pursuant to Reorg.
    Plan No. 21 of 1950, and was not changed to Secretary of
    Transportation in view of directory language of Pub. L. 97-31. See
    1981 Amendment and Transfer of Functions notes below.

-MISC1-
                                AMENDMENTS                            
      1981 - Pub. L. 97-31 substituted "Secretary of Transportation"
    for "Commission" wherever appearing except in fourth paragraph and
    "his" for "its". For prior transfers of functions, see Transfer of
    Functions note below.
      1928 - Act May 22, 1928, struck out paragraph which related to
    contracts for carrying mails.

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      Functions conferred upon Secretary of Commerce by provisions of
    Reorg. Plan No. 21 of 1950 to remain vested in Secretary except to
    extent inconsistent with sections 101(b) and 104(b) of Reorg. Plan
    No. 7 of 1961. See section 202 of Reorg. Plan No. 7 of 1961, set
    out under section 1111 of this Appendix.
      In fourth undesignated par., "Secretary of Commerce" and
    "Secretary" substituted for "Commission", meaning United States
    Maritime Commission, on authority of Reorg. Plan No. 21 of 1950,
    set out under section 1111 of this Appendix, section 306 of which
    abolished United States Maritime Commission and section 204 of
    which transferred to Secretary of Commerce such Commission's
    functions not transferred to Federal Maritime Board.
      Previously, "Commission", meaning United States Maritime
    Commission, substituted for "board", meaning United States Shipping
    Board. For dissolution of Board and transfer of functions to United
    States Maritime Commission, see Ex. Ord. No. 6166 and act June 29,
    1936. Ex. Ord. No. 6166 is set out as a note under section 901 of
    Title 5, Government Organization and Employees. Executive and
    administrative functions of United States Maritime Commission
    transferred to Chairman thereof by Reorg. Plan No. 6 of 1949, eff.
    Aug. 20, 1949, 14 F.R. 5228, 63 Stat. 1069, set out under section
    1111 of this Appendix.

-End-

-CITE-
    46 USC APPENDIX Sec. 867                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 24 - MERCHANT MARINE ACT, 1920

-HEAD-
    Sec. 867. Investigation of port, terminal, and warehouse facilities

-STATUTE-
      It shall be the duty of the Secretary of Transportation, in
    cooperation with the Secretary of the Army, with the object of
    promoting, encouraging, and developing ports and transportation
    facilities in connection with water commerce over which he has
    jurisdiction, to investigate territorial regions and zones
    tributary to such ports, taking into consideration the economies of
    transportation by rail, water, and highway and the natural
    direction of the flow of commerce; to investigate the causes of the
    congestion of commerce at ports and the remedies applicable
    thereto; to investigate the subject of water terminals, including
    the necessary docks, warehouses, apparatus, equipment, and
    appliances in connection therewith, with a view to devising and
    suggesting the types most appropriate for different locations and
    for the most expeditious and economical transfer or interchange of
    passengers or property between carriers by water and carriers by
    rail; to advise with communities regarding the appropriate location
    and plan of construction of wharves, piers, and water terminals; to
    investigate the practicability and advantages of harbor, river, and
    port improvements in connection with foreign and coastwise trade;
    and to investigate any other matter that may tend to promote and
    encourage the use by vessels of ports adequate to care for the
    freight which would naturally pass through such ports: Provided,
    That if after such investigation the Secretary of Transportation
    shall be of the opinion that rates, charges, rules, or regulations
    of common carriers by rail subject to the jurisdiction of the
    Surface Transportation Board are detrimental to the declared object
    of this section, or that new rates, charges, rules, or regulations,
    new or additional port terminal facilities, or affirmative action
    on the part of such common carriers by rail is necessary to promote
    the objects of this section, the Secretary of Transportation may
    submit his findings to the Surface Transportation Board for such
    action as such Board may consider proper under existing law.

-SOURCE-
    (June 5, 1920, ch. 250, Sec. 8, 41 Stat. 992; Ex. Ord. No. 6166,
    Sec. 12, eff. June 10, 1933; June 29, 1936, ch. 858, title II, Sec.
    204, title IX, Sec. 904, 49 Stat. 1987, 2016; July 26, 1947, ch.
    343, title II, Sec. 205(a), 61 Stat. 501; Pub. L. 97-31, Sec.
    12(40), Aug. 6, 1981, 95 Stat. 156; Pub. L. 104-88, title III, Sec.
    321(1), Dec. 29, 1995, 109 Stat. 949.)

-MISC1-
                                AMENDMENTS                            
      1995 - Pub. L. 104-88 substituted "Surface Transportation Board"
    for "Interstate Commerce Commission" in two places and "Board" for
    "commission".
      1981 - Pub. L. 97-31 substituted "Secretary of Transportation"
    for "Commission" in three places, "his" for "its", and "he" for
    "it". For prior transfers of functions, see Transfer of Functions
    note below.

-CHANGE-
                              CHANGE OF NAME                          
      Department of War designated Department of the Army and title of
    Secretary of War changed to Secretary of the Army by section 205(a)
    of act July 26, 1947, ch. 343, title II, 61 Stat. 501. Section
    205(a) of act July 26, 1947, was repealed by section 53 of act Aug.
    10, 1956, ch. 1041, 70A Stat. 641. Section 1 of act Aug. 10, 1956,
    enacted "Title 10, Armed Forces", which in sections 3010 to 3013
    continued Department of the Army under administrative supervision
    of Secretary of the Army.

-MISC2-
                     EFFECTIVE DATE OF 1995 AMENDMENT                 
      Amendment by Pub. L. 104-88 effective Jan. 1, 1996, see section 2
    of Pub. L. 104-88, set out as an Effective Date note under section
    701 of Title 49, Transportation.

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      "Maritime Commission" and "Commission", meaning United States
    Maritime Commission, substituted in text for "board", meaning
    United States Shipping Board). For dissolution of Board and
    transfer of functions to United States Maritime Commission, see Ex.
    Ord. No. 6166 and act June 29, 1936. Ex. Ord. No. 6166 is set out
    as a note under section 901 of Title 5, Government Organization and
    Employees. For subsequent transfers of functions, see Reorg. Plan
    No. 6 of 1949, Reorg. Plan No. 21 of 1950, and Reorg. Plan No. 7 of
    1961, set out under section 1111 of this Appendix.

-End-

-CITE-
    46 USC APPENDIX Sec. 868                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 24 - MERCHANT MARINE ACT, 1920

-HEAD-
    Sec. 868. Vessels sold under deferred payment plan; insurance

-STATUTE-
      If the terms and conditions of any sale of a vessel made under
    the provisions of this Act include deferred payments of the
    purchase price, the Secretary of Transportation shall require, as
    part of such terms and conditions, that the purchaser of the vessel
    shall keep the same insured (a) against loss or damage by fire, and
    against marine risks and disasters, and war and other risks if the
    Secretary of Transportation so specifies, with such insurance
    companies, associations or underwriters, and under such forms of
    policies, and to such an amount, as the Secretary of Transportation
    may prescribe or approve; and (b) by protection and indemnity
    insurance with such insurance companies, associations, or
    underwriters and under such forms of policies, and to such an
    amount as the Secretary of Transportation may prescribe or approve.
    The insurance required to be carried under this section shall be
    made payable to the Secretary of Transportation and/or to the
    parties as interest may appear. The Secretary of Transportation is
    authorized to enter into any agreement that he deems wise in
    respect to the payment and/or the guarantee of premiums of
    insurance.

-SOURCE-
    (June 5, 1920, ch. 250, Sec. 9, 41 Stat. 992; Ex. Ord. No. 6166,
    Sec. 12, eff. June 10, 1933; June 29, 1936, ch. 858, title II, Sec.
    204, title IX, Sec. 904, 49 Stat. 1987, 2016; Pub. L. 97-31, Sec.
    12(41), Aug. 6, 1981, 95 Stat. 156.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This Act, referred to in text, means act June 5, 1920, ch. 250,
    41 Stat. 988, as amended, known as the Merchant Marine Act, 1920,
    which (except for sections repealed or reenacted in Title 46,
    Shipping) is classified principally to this chapter. For complete
    classification of this Act to the Code, see section 889 of this
    Appendix and Tables.

-MISC1-
                                AMENDMENTS                            
      1981 - Pub. L. 97-31 substituted "Secretary of Transportation"
    for "Commission" in six places and "he" for "it". For prior
    transfers of functions, see Transfer of Functions note below.

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      "Commission", meaning United States Maritime Commission,
    substituted in text for "board", meaning United States Shipping
    Board. For dissolution of Board and transfer of functions to United
    States Maritime Commission, see Ex. Ord. No. 6166 and act June 29,
    1936. Ex. Ord. No. 6166 is set out as a note under section 901 of
    Title 5, Government Organization and Employees. For subsequent
    transfers of functions, see Reorg. Plan No. 6 of 1949, Reorg. Plan
    No. 21 of 1950, and Reorg. Plan No. 7 of 1961, set out under
    section 1111 of this Appendix.

-End-

-CITE-
    46 USC APPENDIX Sec. 869                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 24 - MERCHANT MARINE ACT, 1920

-HEAD-
    Sec. 869. Creation of fund for insurance of interests of United
      States

-STATUTE-
      The Secretary of Transportation may create out of insurance
    premiums, and revenue from operations and sales, and maintain and
    administer separate insurance funds which he may use to insure in
    whole or in part against all hazards commonly covered by insurance
    policies in such cases, any legal or equitable interest of the
    United States (1) in any vessel constructed or in process of
    construction; and (2) in any plants or property in the possession
    or under the authority of the Secretary of Transportation. The
    United States shall be held to have such an interest in any vessel
    toward the construction, reconditioning, remodeling, improving, or
    equipping of which a loan has been made under the authority of this
    Act, in any vessel upon which he holds a mortgage or lien of any
    character, or in any vessel which is obligated by contract with the
    owner to perform any service in behalf of the United States, to the
    extent of the Government's interest therein.

-SOURCE-
    (June 5, 1920, ch. 250, Sec. 10, 41 Stat. 992; May 22, 1928, ch.
    675, Sec. 501, 45 Stat. 697; Ex. Ord. No. 6166, Sec. 12, eff. June
    10, 1933; June 29, 1936, ch. 858, title II, Sec. 204, title IX,
    Sec. 904, 49 Stat. 1987, 2016; Pub. L. 97-31, Sec. 12(42), Aug. 6,
    1981, 95 Stat. 156.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This Act, referred to in text, means act June 5, 1920, ch. 250,
    41 Stat. 988, as amended, known as the Merchant Marine Act, 1920,
    which (except for sections repealed or reenacted in Title 46,
    Shipping) is classified principally to this chapter. For complete
    classification of this Act to the Code, see section 889 of this
    Appendix and Tables.

-MISC1-
                                AMENDMENTS                            
      1981 - Pub. L. 97-31 substituted "Secretary of Transportation"
    for "Commission" in two places and "he" for "it" in two places. For
    prior transfers of functions, see Transfer of Functions note below.
      1928 - Act May 22, 1928, inserted sentence relating to extent of
    interest of United States, among other changes.

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      "Commission", meaning United States Maritime Commission,
    substituted in text for "board", meaning United States Shipping
    Board. For dissolution of Board and transfer of functions to United
    States Maritime Commission, see Ex. Ord. No. 6166 and act June 29,
    1936. Ex. Ord. No. 6166 is set out as a note under section 901 of
    Title 5, Government Organization and Employees. For subsequent
    transfers of functions, see Reorg. Plan No. 6 of 1949, Reorg. Plan
    No. 21 of 1950, and Reorg. Plan No. 7 of 1961, set out under
    section 1111 of this Appendix.

-End-

-CITE-
    46 USC APPENDIX Sec. 871                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 24 - MERCHANT MARINE ACT, 1920

-HEAD-
    Sec. 871. Repair and operation of vessels until sale

-STATUTE-
      All vessels may be reconditioned and kept in suitable repair and
    until sold shall be managed and operated by the Secretary of
    Transportation or chartered or leased by him on such terms and
    conditions as the Secretary of Transportation shall deem wise for
    the promotion and maintenance of an efficient merchant marine,
    pursuant to the policy and purposes declared in section 861 of this
    Appendix and section 5 of this Act.(!1)

      The term "reconditioned" as used in this section includes the
    substitution of the most modern, most efficient, and most
    economical types of internal-combustion engines as the main
    propulsive power of vessels. Should the Secretary of Transportation
    have any such engines built in the United States and installed, in
    private shipyards or navy yards of the United States, in one or
    more merchant vessels owned by the United States, and the cost to
    the Secretary of Transportation of such installation exceeds the
    amount of funds otherwise available to him for that use, the
    Secretary of Transportation may transfer to his funds from which
    expenditures under this section may be paid, from his construction
    fund authorized by section 11 (!1) of the Merchant Marine Act,
    1920, so much as in his judgment may be necessary to meet
    obligations under contracts for such installation; and the
    Treasurer of the United States shall, at the request of the
    Secretary of Transportation, make the transfer accordingly:
    Provided, That the total amount expended by the Secretary of
    Transportation for this purpose shall not in the aggregate exceed
    $25,000,000. Any such vessel after June 5, 1920, so equipped by the
    Secretary of Transportation under the provisions of this section
    shall not be sold for a period of five years from the date the
    installation thereof is completed, unless it is sold for a price
    not less than the cost of the installation thereof and of any other
    work of reconditioning done at the same time plus an amount not
    less than $10 for each dead-weight ton of the vessel as computed
    before such reconditioning thereof is commenced. The date of the
    completion of such installation and the amount of the dead-weight
    tonnage of the vessel shall be fixed by the Secretary of
    Transportation: Provided further, That in fixing the minimum price
    at which the vessel may thus be sold the Secretary of
    Transportation may deduct from the aggregate amount above
    prescribed 5 per centum thereof per annum from the date of the
    installation to the date of sale as depreciation: And provided
    further, That no part of such fund shall be expended upon the
    reconditioning of any vessel unless the Secretary of Transportation
    shall have first made a binding contract for a satisfactory sale of
    such vessel in accordance with the provisions of this Act, or for
    the charter or lease of such vessels for a period of not less than
    five years by a capable, solvent operator; or unless the Secretary
    of Transportation is prepared and intends to directly put such
    vessel in operation immediately upon completion. Such vessel, in
    any of the enumerated instances, shall be documented under the laws
    of the United States and shall remain documented under such laws
    for a period of not less than five years from the date of the
    completion of the installation, and during such period it shall be
    operated only on voyages which are not exclusively coastwise.

-SOURCE-
    (June 5, 1920, ch. 250, Sec. 12, 41 Stat. 993; June 6, 1924, ch.
    273, Sec. 2, 43 Stat. 468; Feb. 11, 1927, ch. 104, Sec. 1, 44 Stat.
    1083; Ex. Ord. No. 6166, Sec. 12, eff. June 10, 1933; June 29,
    1936, ch. 858, title II, Sec. 204, title IX, Sec. 904, 49 Stat.
    1987, 2016; Pub. L. 97-31, Sec. 12(43), Aug. 6, 1981, 95 Stat.
    157.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 5 of this Act, referred to in text, is section 5 of act
    June 5, 1920, which was classified to section 864 of former Title
    46, Shipping, and was repealed by Pub. L. 100-710, title II, Sec.
    202(4), Nov. 23, 1988, 102 Stat. 4753.
      Section 11 of the Merchant Marine Act, 1920, referred to in text,
    was classified to section 870 of former Title 46, and was repealed
    by act June 29, 1936, ch. 858, Sec. 903(b), (c), 49 Stat. 2016. See
    section 1116 of this Appendix.
      This Act, referred to in text, means act June 5, 1920, ch. 250,
    41 Stat. 988, as amended, known as the Merchant Marine Act, 1920,
    which (except for sections repealed or reenacted in Title 46) is
    classified principally to this chapter. For complete classification
    of this Act to the Code, see section 889 of this Appendix and
    Tables.

-COD-
                               CODIFICATION                           
      The first paragraph of this section originally contained a
    further provision continuing the United States Shipping Board
    Merchant Fleet Corporation in existence with authority to operate
    vessels. The corporation was subsequently dissolved by section 203
    of act June 29, 1936.

-MISC1-
                                AMENDMENTS                            
      1981 - Pub. L. 97-31 substituted "Secretary of Transportation"
    for "Commission" in twelve places, "him" for "it" in two places,
    and "his" for "its" in three places. For prior transfers of
    functions, see Transfer of Functions note below.
      1927 - Act Feb. 11, 1927, substituted "U.S. Shipping Board
    Merchant Fleet Corporation" for "U.S. Shipping Board Emergency
    Fleet Corporation" in first par.
      1924 - Act June 6, 1924, added second par.

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      "Commission", meaning United States Maritime Commission,
    substituted in text for "board", meaning United States Shipping
    Board. For dissolution of Board and transfer of functions to United
    States Maritime Commission, see Ex. Ord. No. 6166 and act June 29,
    1936. Ex. Ord. No. 6166 is set out as a note under section 901 of
    Title 5, Government Organization and Employees. For subsequent
    transfers of functions, see Reorg. Plan No. 6 of 1949, Reorg. Plan
    No. 21 of 1950, and Reorg. Plan No. 7 of 1961, set out under
    section 1111 of this Appendix.

-FOOTNOTE-               

    (!1) See References in Text note below.

-End-

-CITE-
    46 USC APPENDIX Sec. 872                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 24 - MERCHANT MARINE ACT, 1920

-HEAD-
    Sec. 872. Sale of property other than vessels

-STATUTE-
      The Secretary of Transportation is further authorized to sell all
    property other than vessels transferred to him under section 4 (!1)
    upon such terms and conditions as the Secretary of Transportation
    may determine and prescribe.

-SOURCE-
    (June 5, 1920, ch. 250, Sec. 13, 41 Stat. 993; Ex. Ord. No. 6166,
    Sec. 12, eff. June 10, 1933; June 29, 1936, ch. 858, title II, Sec.
    204, title IX, Sec. 904, 49 Stat. 1987, 2016; Pub. L. 97-31, Sec.
    12(44), Aug. 6, 1981, 95 Stat. 157.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 4, referred to in text, means section 4 of act June 5,
    1920, which was classified to section 863 of former Title 46,
    Shipping, and was repealed by Pub. L. 100-710, title II, Sec.
    202(4), Nov. 23, 1988, 102 Stat. 4753.

-MISC1-
                                AMENDMENTS                            
      1981 - Pub. L. 97-31 substituted "Secretary of Transportation"
    for "Commission" in two places and "him" for "it". For prior
    transfers of functions, see Transfer of Functions note below.

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      "Commission", meaning United States Maritime Commission,
    substituted in text for "board", meaning United States Shipping
    Board. For dissolution of Board and transfer of functions to United
    States Maritime Commission, see Ex. Ord. No. 6166 and act June 29,
    1936. Ex. Ord. No. 6166 is set out as a note under section 901 of
    Title 5, Government Organization and Employees. For subsequent
    transfers of functions, see Reorg. Plan No. 6 of 1949, Reorg. Plan
    No. 21 of 1950, and Reorg. Plan No. 7 of 1961, set out under
    section 1111 of this Appendix.

-FOOTNOTE-
    (!1) See References in Text note below.

-End-

-CITE-
    46 USC APPENDIX Sec. 875                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 24 - MERCHANT MARINE ACT, 1920

-HEAD-
    Sec. 875. Possession and control of terminal equipment and
      facilities

-STATUTE-
      The possession and control of such other (!1) docks, piers,
    warehouses, wharves and terminal equipment and facilities or parts
    thereof, including all leasehold easements, rights of way, riparian
    rights and other rights, estates or interests therein or
    appurtenant thereto which were acquired by the War Department (!2)
    or the Navy Department for military or naval purposes during the
    war emergency may be transferred by the president to the Secretary
    of Transportation whenever the President deems such transfer to be
    for the best interests of the United States.

      The President may at any time he deems it necessary, by order
    setting out the need therefor and fixing the period of such need,
    permit or transfer the possession and control of any part of the
    property taken over by or transferred to the Secretary of
    Transportation under this section to the Department of the Army,
    Department of the Air Force, or Department of the Navy for their
    needs, and when in the opinion of the President such need therefor
    ceases the possession and control of such property shall revert to
    the Secretary of Transportation. None of such property shall be
    sold except as may be provided by law.

-SOURCE-
    (June 5, 1920, ch. 250, Sec. 17, 41 Stat. 994; Ex. Ord. No. 6166,
    Sec. 12, eff. June 10, 1933; June 29, 1936, ch. 858, title II, Sec.
    204, title IX, Sec. 904, 49 Stat. 1987, 2016; July 26, 1947, ch.
    343, title II, Secs. 205(a), 207(a), (f), 61 Stat. 501, 502; Pub.
    L. 97-31, Sec. 12(45), Aug. 6, 1981, 95 Stat. 157.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Words "such other", referred to in first par., mean other than
    docks, etc., acquired by President by or under act Mar. 28, 1918,
    ch. 28, 40 Stat. 459, which was referred to in original first par.
    prior to repeal by Pub. L. 97-31. See 1981 Amendment note below.

-MISC1-
                                AMENDMENTS                            
      1981 - Pub. L. 97-31 struck out first par., directing Commission
    to take over, on Jan. 1, 1921, possession and control of docks,
    etc., acquired by President by or under act Mar. 28, 1918, ch. 28,
    40 Stat. 459, and substituted "Secretary of Transportation" for
    "Commission" wherever appearing. For prior transfers of functions,
    see Transfer of Functions note below.

-CHANGE-
                              CHANGE OF NAME                          
      Department of War designated Department of the Army and title of
    Secretary of War changed to Secretary of the Army by section 205(a)
    of act July 26, 1947. Section 207(a), (f) of act July 26, 1947,
    established Department of the Air Force, headed by a Secretary, and
    transferred functions (relating to Army Air Forces) of Secretary of
    the Army and Department of the Army to Secretary of the Air Force
    and Department of the Air Force. Sections 205(a) and 207(a), (f) of
    act July 26, 1947, were repealed by section 53 of act Aug. 10,
    1956, ch. 1041, 70A Stat. 641. Section 1 of act Aug. 10, 1956,
    enacted "Title 10, Armed Forces", which in sections 3010 to 3013
    and 8010 to 8013 continued Departments of the Army and Air Force
    under administrative supervision of Secretary of the Army and
    Secretary of the Air Force, respectively.

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      "Commission", meaning United States Maritime Commission,
    substituted for "board", meaning United States Shipping Board. For
    dissolution of Board and transfer of functions to United States
    Maritime Commission, see Ex. Ord. No. 6166 and act June 29, 1936.
    Ex. Ord. No. 6166 is set out as a note under section 901 of Title
    5, Government Organization and Employees. For subsequent transfers
    of functions, see Reorg. Plan No. 6 of 1949, Reorg. Plan No. 21 of
    1950, and Reorg. Plan No. 7 of 1961, set out under section 1111 of
    this Appendix.

-FOOTNOTE-
    (!1) See References in Text note below.

    (!2) See Change of Name note below.

-End-

-CITE-
    46 USC APPENDIX Sec. 876                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 24 - MERCHANT MARINE ACT, 1920

-HEAD-
    Sec. 876. Power of Secretary and Commission to make rules and
      regulations

-STATUTE-
    (a) In general
      The Secretary of Transportation is authorized and directed in aid
    of the accomplishment of the purposes of this Act - 
        (1) To make all necessary rules and regulations to carry out
      the provisions of this Act;

      And the Federal Maritime Commission is authorized and directed in
    aid of the accomplishment of the purposes of this Act:
        (2) To make rules and regulations affecting shipping in the
      foreign trade not in conflict with law in order to adjust or meet
      general or special conditions unfavorable to shipping in the
      foreign trade, whether in any particular trade or upon any
      particular route or in commerce generally, including intermodal
      movements, terminal operations, cargo solicitation, agency
      services, ocean transportation intermediary services and
      operations, and other activities and services integral to
      transportation systems, and which arise out of or result from
      foreign laws, rules, or regulations or from competitive methods,
      pricing practices, or other practices employed by owners,
      operators, agents, or masters of vessels of a foreign country;
      and
        (3) To request the head of any department, board, bureau, or
      agency of the Government to suspend, modify, or annul rules or
      regulations which have been established by such department,
      board, bureau, or agency, or to make new rules or regulations
      affecting shipping in the foreign trade other than such rules or
      regulations relating to the Public Health Service, the Consular
      Service, and the steamboat inspection service.
    (b) Approval and final action
      No rule or regulation shall be established by any department,
    board, bureau, or agency of the Government which affects shipping
    in the foreign trade, except rules or regulations affecting the
    Public Health Service, the Consular Service, and the steamboat
    inspection service, until such rule or regulation has been
    submitted to the Federal Maritime Commission for its approval and
    final action has been taken thereon by the Commission or the
    President.
    (c) Submission of facts to President
      Whenever the head of any department, board, bureau, or agency of
    the Government refuses to suspend, modify, or annul any rule or
    regulation, or make a new rule or regulation upon request of the
    Federal Maritime Commission, as provided in subsection (a)(3) of
    this section, or objects to the decision of the Commission in
    respect to the approval of any rule or regulation, as provided in
    subsection (b) of this section, either the Commission or the head
    of the department, board, bureau, or agency which has established
    or is attempting to establish the rule or regulation in question
    may submit the facts to the President, who is authorized to
    establish or suspend, modify, or annul such rule or regulation.
    (d) Prohibition against preference
      No rule or regulation shall be established which in any manner
    gives vessels owned by the United States any preference or favor
    over those vessels documented under the laws of the United States
    and owned by persons who are citizens of the United States.
    (e) Motion or petition
      The Commission may initiate a rule or regulation under subsection
    (a)(2) of this section either on its own motion or pursuant to a
    petition. Any person, including a common carrier, tramp operator,
    bulk operator, shipper, shippers' association, ocean transportation
    intermediary, marine terminal operator, or any component of the
    Government of the United States, may file a petition for relief
    under subsection (a)(2) of this section.
    (f) Filing of information
      In furtherance of the purposes of subsection (a)(2) of this
    section - 
        (1) the Commission may, by order, require any person (including
      any common carrier, tramp operator, bulk operator, shipper,
      shippers' association, ocean transportation intermediary, or
      marine terminal operator, or an officer, receiver, trustee,
      lessee, agent, or employee thereof) to file with the Commission a
      report, answers to questions, documentary material, or other
      information which the Commission considers necessary or
      appropriate;
        (2) the Commission may require a report or answers to questions
      to be made under oath;
        (3) the Commission may prescribe the form and the time for
      response to a report and answers to questions; and
        (4) a person who fails to file a report, answer, documentary
      material, or other information required under this paragraph
      shall be liable to the United States Government for a civil
      penalty of not more than $5,000 for each day that the information
      is not provided.
    (g) Discovery; witnesses; evidence
      In proceedings under subsection (a)(2) of this section - 
        (1) the Commission may authorize a party to use depositions,
      written interrogatories, and discovery procedures that, to the
      extent practicable, are in conformity with the rules applicable
      in civil proceedings in the district courts of the United States;
        (2) the Commission may by subpoena compel the attendance of
      witnesses and the production of books, papers, documents, and
      other evidence;
        (3) subject to funds being provided by appropriations Acts,
      witnesses are, unless otherwise prohibited by law, entitled to
      the same fees and mileage as in the courts of the United States;
        (4) for failure to supply information ordered to be produced or
      compelled by subpoena under paragraph (2), the Commission may - 
          (A) after notice and an opportunity for hearing, suspend
        tariffs and service contracts of a common carrier or that
        common carrier's right to use tariffs of conferences and
        service contracts of agreements of which it is a member, or
          (B) assess a civil penalty of not more than $5,000 for each
        day that the information is not provided; and

        (5) when a person violates an order of the Commission or fails
      to comply with a subpoena, the Commission may seek enforcement by
      a United States district court having jurisdiction over the
      parties, and if, after hearing, the court determines that the
      order was regularly made and duly issued, it shall enforce the
      order by an appropriate injunction or other process, mandatory or
      otherwise.
    (h) Disclosure to public
      Notwithstanding any other law, the Commission may refuse to
    disclose to the public a response or other information provided
    under the terms of this section.
    (i) Finding of unfavorable conditions
      If the Commission finds that conditions that are unfavorable to
    shipping under subsection (a)(2) of this section exist, the
    Commission may - 
        (1) limit sailings to and from United States ports or the
      amount or type of cargo carried;
        (2) suspend, in whole or in part, tariffs and service contracts
      for carriage to or from United States ports, including a common
      carrier's right to use tariffs of conferences and service
      contracts of agreements in United States trades of which it is a
      member for any period the Commission specifies;
        (3) suspend, in whole or in part, an ocean common carrier's
      right to operate under an agreement filed with the Commission,
      including any agreement authorizing preferential treatment at
      terminals, preferential terminal leases, space chartering, or
      pooling of cargoes or revenue with other ocean common carriers;
        (4) impose a fee, not to exceed $1,000,000 per voyage; or
        (5) take any other action the Commission finds necessary and
      appropriate to adjust or meet any condition unfavorable to
      shipping in the foreign trade of the United States.
    (j) Refusal of clearance and denial of entry
      Upon request by the Commission - 
        (1) the collector of customs at the port or place of
      destination in the United States shall refuse the clearance
      required by section 91 of this Appendix to a vessel of a country
      that is named in a rule or regulation issued by the Commission
      under subsection (a)(2) of this section, and shall collect any
      fees imposed by the Commission under subsection (i)(4) of this
      section; and
        (2) the Secretary of the department in which the Coast Guard is
      operating shall deny entry for purpose of oceanborne trade, of a
      vessel of a country that is named in a rule or regulation issued
      by the Commission under subsection (a)(2) of this section, to any
      port or place in the United States or the navigable waters of the
      United States, or shall detain that vessel at the port or place
      in the United States from which it is about to depart for another
      port or place in the United States.
    (k) Operation under suspended tariff or service contract
      A common carrier that accepts or handles cargo for carriage under
    a tariff or service contract that has been suspended under
    subsection (g)(4) or (i)(2) of this section, or after its right to
    use another tariff or service contract has been suspended under
    those paragraphs, is subject to a civil penalty of not more than
    $50,000 for each day that it is found to be operating under a
    suspended tariff or service contract.
    (l) Consultation with other agencies
      The Commission may consult with, seek the cooperation of, or make
    recommendations to other appropriate Government agencies prior to
    taking any action under this section.

-SOURCE-
    (June 5, 1920, ch. 250, Sec. 19, 41 Stat. 995; Ex. Ord. No. 6166,
    Sec. 12, eff. June 10, 1933; June 29, 1936, ch. 858, title II, Sec.
    204, title IX, Sec. 904, 49 Stat. 1987, 2016; Pub. L. 97-31, Sec.
    12(46), Aug. 6, 1981, 95 Stat. 157; Pub. L. 101-595, title I, Sec.
    103, Nov. 16, 1990, 104 Stat. 2979; Pub. L. 102-587, title VI, Sec.
    6205(b), Nov. 4, 1992, 106 Stat. 5094; Pub. L. 105-258, title III,
    Sec. 301, Oct. 14, 1998, 112 Stat. 1915.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This Act, referred to in subsec. (a), means act June 5, 1920, ch.
    250, 41 Stat. 988, as amended, known as the Merchant Marine Act,
    1920, which (except for sections repealed or reenacted in Title 46,
    Shipping) is classified principally to this chapter. For complete
    classification of this Act to the Code, see section 889 of this
    Appendix and Tables.

-MISC1-
                                AMENDMENTS                            
      1998 - Subsec. (a). Pub. L. 105-258, Sec. 301(a)(1)-(3), (b)(1),
    (2), redesignated par. (1) as subsec. (a) and former subdivs. (a)
    to (c) as pars. (1) to (3), respectively, and, in par. (2) as
    redesignated, struck out "forwarding and" before "agency services"
    and substituted "ocean transportation intermediary services and
    operations," for "non-vessel-operating common carrier operations,"
    and "methods, pricing practices, or other practices" for "methods
    or practices".
      Subsec. (b). Pub. L. 105-258, Sec. 301(b)(1), redesignated par.
    (2) as subsec. (b).
      Subsec. (c). Pub. L. 105-258, Sec. 301(b)(1), (8), (9),
    redesignated par. (3) as subsec. (c) and substituted "subsection
    (a)(3)" for "subdivision (c) of paragraph (1)" and "subsection (b)"
    for "paragraph (2)".
      Subsec. (d). Pub. L. 105-258, Sec. 301(b)(1), redesignated par.
    (4) as subsec. (d).
      Subsec. (e). Pub. L. 105-258, Sec. 301(a)(7), (b)(1), (10),
    redesignated par. (5) as subsec. (e), substituted "transportation
    intermediary," for "freight forwarder,", and substituted
    "subsection (a)(2)" for "paragraph (1)(b)" in two places.
      Subsec. (f). Pub. L. 105-258, Sec. 301(b)(1), (10), redesignated
    par. (6) as subsec. (f) and substituted "subsection (a)(2)" for
    "paragraph (1)(b)" in introductory provisions.
      Subsec. (f)(1). Pub. L. 105-258, Sec. 301(a)(7), (b)(3),
    redesignated subd. (a) as par. (1) and substituted "transportation
    intermediary," for "freight forwarder,".
      Subsec. (f)(2) to (4). Pub. L. 105-258, Sec. 301(b)(3),
    redesignated subds. (b) to (d) as pars. (2) to (4), respectively.
      Subsec. (g). Pub. L. 105-258, Sec. 301(b)(1), (10), redesignated
    par. (7) as subsec. (g) and substituted "subsection (a)(2)" for
    "paragraph (1)(b)" in introductory provisions.
      Subsec. (g)(1) to (3). Pub. L. 105-258, Sec. 301(b)(4),
    redesignated subds. (a) to (c) as pars. (1) to (3), respectively.
      Subsec. (g)(4). Pub. L. 105-258, Sec. 301(b)(4), (11),
    redesignated subd. (d) as par. (4) and substituted "paragraph (2),"
    for "subdivision (b)," in introductory provisions.
      Subsec. (g)(4)(A). Pub. L. 105-258, Sec. 301(a)(4), (5), (b)(5),
    redesignated cl. (i) as subpar. (A) and substituted "tariffs and
    service contracts of a common carrier" for "tariffs of a common
    carrier" and "use tariffs of conferences and service contracts of
    agreements" for "use the tariffs of conferences".
      Subsec. (g)(4)(B). Pub. L. 105-258, Sec. 301(b)(5), redesignated
    cl. (ii) as subpar. (B).
      Subsec. (g)(5). Pub. L. 105-258, Sec. 301(b)(4), redesignated
    subd. (e) as par. (5).
      Subsec. (h). Pub. L. 105-258, Sec. 301(b)(1), redesignated par.
    (8) as subsec. (h).
      Subsec. (i). Pub. L. 105-258, Sec. 301(b)(1), (10), redesignated
    par. (9) as subsec. (i) and substituted "subsection (a)(2)" for
    "paragraph (1)(b)" in introductory provisions.
      Subsec. (i)(1). Pub. L. 105-258, Sec. 301(b)(6), redesignated
    subd. (a) as par. (1).
      Subsec. (i)(2). Pub. L. 105-258, Sec. 301(a)(6), (b)(6),
    redesignated subd. (b) as par. (2) and substituted "tariffs and
    service contracts" for "tariffs filed with the Commission".
      Pub. L. 105-258, Sec. 301(a)(5), which directed amendment of par.
    (2) by substituting "use tariffs of conferences and service
    contracts of agreements" for "use the tariffs of conferences", was
    executed by making the substitution for "use tariffs of
    conferences", to reflect the probable intent of Congress.
      Subsec. (i)(3) to (5). Pub. L. 105-258, Sec. 301(b)(6),
    redesignated subds. (c) to (e) as pars. (3) to (5), respectively.
      Subsec. (j). Pub. L. 105-258, Sec. 301(b)(1), redesignated par.
    (10) as subsec. (j).
      Subsec. (j)(1). Pub. L. 105-258, Sec. 301(b)(7), (10), (12),
    redesignated subd. (a) as par. (1) and substituted "subsection
    (a)(2)" for "paragraph (1)(b)" and "subsection (i)(4)" for
    "paragraph (9)(d)".
      Subsec. (j)(2). Pub. L. 105-258, Sec. 301(b)(7), (10),
    redesignated subd. (b) as par. (2) and substituted "subsection
    (a)(2)" for "paragraph (1)(b)".
      Subsec. (k). Pub. L. 105-258, Sec. 301(a)(8), (b)(1), (13),
    redesignated par. (11) as subsec. (k), substituted "subsection
    (g)(4) or (i)(2)" for "paragraph (7)(d) or (9)(b)", and substituted
    "tariff or service contract" for "tariff" wherever appearing.
      Subsec. (l). Pub. L. 105-258, Sec. 301(b)(1), redesignated par.
    (12) as subsec. (l).
      1992 - Par. (1)(b). Pub. L. 102-587, Sec. 6205(b)(1), substituted
    "systems" for "sysetms" after "integral to transportation".
      Par. (7)(d). Pub. L. 102-587, Sec. 6205(b)(2), substituted "under
    subdivision (b)" for "in proceedings under paragraph (1)(b)(7) of
    this section".
      1990 - Par. (1)(b). Pub. L. 101-595, Sec. 103(1), inserted
    "including intermodal movements, terminal operations, cargo
    solicitation, forwarding and agency services, non-vessel-operating
    common carrier operations, and other activities and services
    integral to transportation sysetms," after "generally,".
      Pars. (5) to (12). Pub. L. 101-595, Sec. 103(2), added pars. (5)
    to (12).
      1981 - Par. (1). Pub. L. 97-31 substituted "Secretary of
    Transportation" for "Commission", and added after subsec. (a) an
    undesignated paragraph respecting authority of Federal Maritime
    Commission. For prior transfers of functions, see Transfer of
    Functions note below.

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Amendments by Pub. L. 105-258 effective May 1, 1999, see section
    2 of Pub. L. 105-258, set out as a note under section 1701 of this
    Appendix.

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      For transfer of authorities, functions, personnel, and assets of
    the Coast Guard, including the authorities and functions of the
    Secretary of Transportation relating thereto, to the Department of
    Homeland Security, and for treatment of related references, see
    sections 468(b), 551(d), 552(d), and 557 of Title 6, Domestic
    Security, and the Department of Homeland Security Reorganization
    Plan of November 25, 2002, as modified, set out as a note under
    section 542 of Title 6.
      "Commission", meaning United States Maritime Commission,
    substituted in text for "board", meaning United States Shipping
    Board. For dissolution of Board and transfer of functions to United
    States Maritime Commission, see Ex. Ord. No. 6166 and act June 29,
    1936. Ex. Ord. No. 6166 is set out as a note under section 901 of
    Title 5, Government Organization and Employees. For subsequent
    transfers of functions, see Reorg. Plan No. 6 of 1949, Reorg. Plan
    No. 21 of 1950, and Reorg. Plan No. 7 of 1961, set out under
    section 1111 of this Appendix.
      Functions of Public Health Service and of all other officers and
    employees of Public Health Service, and functions of all agencies
    of or in Public Health Service transferred to Secretary of Health,
    Education, and Welfare by Reorg. Plan No. 3 of 1966, eff. June 25,
    1966, 31 F.R. 8855, 80 Stat. 1610, set out in the Appendix to Title
    5. Secretary of Health, Education, and Welfare redesignated
    Secretary of Health and Human Services by section 509(b) of Pub. L.
    96-88, which is classified to section 3508(b) of Title 20,
    Education.
      All offices of collector of customs, comptroller of customs,
    surveyor of customs, and appraiser of merchandise in Bureau of
    Customs of Department of the Treasury to which appointments were
    required to be made by President with advice and consent of Senate
    ordered abolished with such offices to be terminated not later than
    Dec. 31, 1966, by Reorg. Plan No. 1 of 1965, eff. May 25, 1965, 30
    F.R. 7035, 79 Stat. 1317, set out in the Appendix to Title 5,
    Government Organization and Employees. All functions of offices
    eliminated were already vested in Secretary of the Treasury by
    Reorg. Plan No. 26 of 1950, eff. July 31, 1950, 15 F.R. 4935, 64
    Stat. 1280, set out in the Appendix to Title 5.
      Steamboat Inspection Service consolidated in Bureau of Marine
    Inspection and Navigation which was later abolished. Functions
    relating to inspection of vessels now vested in Commandant of the
    Coast Guard. See note preceding section 3 of this Appendix.

-End-

-CITE-
    46 USC APPENDIX Sec. 877                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 24 - MERCHANT MARINE ACT, 1920

-HEAD-
    Sec. 877. Coastwise laws extended to island Territories and
      possessions

-STATUTE-
      From and after February 1, 1922, the coastwise laws of the United
    States shall extend to the island Territories and possessions of
    the United States not covered thereby on June 5, 1920, and the
    Secretary of Transportation is directed prior to the expiration of
    such year to have established adequate steamship service at
    reasonable rates to accommodate the commerce and the passenger
    travel of said islands and to maintain and operate such service
    until it can be taken over and operated and maintained upon
    satisfactory terms by private capital and enterprise: Provided,
    That if adequate shipping service is not established by February 1,
    1922, the President shall extend the period herein allowed for the
    establishment of such service in the case of any island Territory
    or possession for such time as may be necessary for the
    establishment of adequate shipping facilities therefor: And
    provided further, That the coastwise laws of the United States
    shall not extend to the Virgin Islands of the United States until
    the President of the United States shall, by proclamation, declare
    that such coastwise laws shall extend to the Virgin Islands and fix
    a date for the going into effect of same.

-SOURCE-
    (June 5, 1920, ch. 250, Sec. 21, 41 Stat. 997; Ex. Ord. No. 6166,
    Sec. 12, eff. June 10, 1933; Apr. 16, 1936, ch. 228, 49 Stat. 1207;
    June 29, 1936, ch. 858, title II, Sec. 204, title IX, Sec. 904, 49
    Stat. 1987, 2016; Proc. No. 2695, eff. July 4, 1946, 11 F.R. 7517,
    60 Stat. 1352; Pub. L. 97-31, Sec. 12(47), Aug. 6, 1981, 95 Stat.
    157.)

-COD-
                               CODIFICATION                           
      Provisos of this section authorizing the government of Philippine
    Islands to regulate transportation between ports or places in
    Philippine Archipelago until Congress authorized registry of
    vessels owned in those islands, and providing that this section
    should not go into effect in Philippine Islands until after
    investigation and proclamation by President, omitted on authority
    of Proc. No. 2695 of 1946, set out under section 1394 of Title 22,
    Foreign Relations and Intercourse, which proclaimed independence of
    Philippines.

-MISC1-
                                AMENDMENTS                            
      1981 - Pub. L. 97-31 substituted "Secretary of Transportation"
    for "Commission". For prior transfers of functions, see Transfer of
    Functions note below.
      1936 - Act Apr. 16, 1936, inserted last proviso.

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      "Commission", meaning United States Maritime Commission,
    substituted in text for "board", meaning United States Shipping
    Board. For dissolution of Board and transfer of functions to United
    States Maritime Commission, see Ex. Ord. No. 6166 and act June 29,
    1936. Ex. Ord. No. 6166 is set out as a note under section 901 of
    Title 5, Government Organization and Employees. For subsequent
    transfers of functions, see Reorg. Plan No. 6 of 1949, Reorg. Plan
    No. 21 of 1950, and Reorg. Plan No. 7 of 1961, set out under
    section 1111 of this Appendix.

-End-

-CITE-
    46 USC APPENDIX Sec. 883                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 24 - MERCHANT MARINE ACT, 1920

-HEAD-
    Sec. 883. Transportation of merchandise between points in United
      States in other than domestic built or rebuilt and documented
      vessels; incineration of hazardous waste at sea

-STATUTE-
      No merchandise, including merchandise owned by the United States
    Government, a State (as defined in section 2101 of the (!1) title
    46), or a subdivision of a State, shall be transported by water, or
    by land and water, on penalty of forfeiture of the merchandise (or
    a monetary amount up to the value thereof as determined by the
    Secretary of the Treasury, or the actual cost of the
    transportation, whichever is greater, to be recovered from any
    consignor, seller, owner, importer, consignee, agent, or other
    person or persons so transporting or causing said merchandise to be
    transported), between points in the United States, including
    Districts, Territories, and possessions thereof embraced within the
    coastwise laws, either directly or via a foreign port, or for any
    part of the transportation, in any other vessel than a vessel built
    in and documented under the laws of the United States and owned by
    persons who are citizens of the United States, or vessels to which
    the privilege of engaging in the coastwise trade is extended by
    section 808 of this Appendix or section 22 (!2) of this Act:
    Provided, That no vessel of more than 200 gross tons (as measured
    under chapter 143 of title 46) having at any time acquired the
    lawful right to engage in the coastwise trade, either by virtue of
    having been built in, or documented under the laws of the United
    States, and later sold foreign in whole or in part, or placed under
    foreign registry, shall hereafter acquire the right to engage in
    the coastwise trade: Provided further, That no vessel which has
    acquired the lawful right to engage in the coastwise trade, by
    virtue of having been built in or documented under the laws of the
    United States, and which has later been rebuilt shall have the
    right thereafter to engage in the coastwise trade, unless the
    entire rebuilding, including the construction of any major
    components of the hull or superstructure of the vessel, is effected
    within the United States, its territories (not including trust
    territories), or its possessions: Provided further, That this
    section shall not apply to merchandise transported between points
    within the continental United States, including Alaska, over
    through routes heretofore or hereafter recognized by the Surface
    Transportation Board for which routes rate tariffs have been or
    shall hereafter be filed with the Board when such routes are in
    part over Canadian rail lines and their own or other connecting
    water facilities: Provided further, That this section shall not
    become effective upon the Yukon River until the Alaska Railroad
    shall be completed and the Secretary of Transportation shall find
    that proper facilities will be furnished for transportation by
    persons citizens of the United States for properly handling the
    traffic: Provided further, That this section shall not apply to the
    transportation of merchandise loaded on railroad cars or to motor
    vehicles with or without trailers, and with their passengers or
    contents when accompanied by the operator thereof, when such
    railroad cars or motor vehicles are transported in any railroad car
    ferry operated between fixed termini on the Great Lakes as a part
    of a rail route, if such car ferry is owned by a common carrier by
    water and operated as part of a rail route with the approval of the
    Surface Transportation Board, and if the stock of such common
    carrier by water, or its predecessor, was owned or controlled by a
    common carrier by rail prior to June 5, 1920, and if the stock of
    the common carrier owning such car ferry is, with the approval of
    the Board, now owned or controlled by any common carrier by rail
    and if such car ferry is built in and documented under the laws of
    the United States: Provided further, That upon such terms and
    conditions as the Secretary of the Treasury by regulation may
    prescribe, and, if the transporting vessel is of foreign registry,
    upon a finding by the Secretary of the Treasury, pursuant to
    information obtained and furnished by the Secretary of State, that
    the government of the nation of registry extends reciprocal
    privileges to vessels of the United States, this section shall not
    apply to the transportation by vessels of the United States not
    qualified to engage in the coastwise trade, or by vessels of
    foreign registry, of (a) empty cargo vans, empty lift vans, and
    empty shipping tanks, (b) equipment for use with cargo vans, lift
    vans, or shipping tanks, (c) empty barges specifically designed for
    carriage aboard a vessel and equipment, excluding propulsion
    equipment, for use with such barges, and (d) any empty instrument
    for international traffic exempted from application of the customs
    laws by the Secretary of the Treasury pursuant to the provisions of
    section 1322(a) of title 19, if the articles described in clauses
    (a) through (d) are owned or leased by the owner or operator of the
    transporting vessel and are transported for his use in handling his
    cargo in foreign trade; and (e) stevedoring equipment and material,
    if such equipment and material is owned or leased by the owner or
    operator of the transporting vessel, or is owned or leased by the
    stevedoring company contracting for the lading or unlading of that
    vessel, and is transported without charge for use in the handling
    of cargo in foreign trade: Provided further, That upon such terms
    and conditions as the Secretary of the Treasury by regulation may
    prescribe, and, if the transporting vessel is of foreign registry,
    upon his finding, pursuant to information furnished by the
    Secretary of State, that the government of the nation of registry
    extends reciprocal privileges to vessels of the United States, the
    Secretary of the Treasury may suspend the application of this
    section to the transportation of merchandise between points in the
    United States (excluding transportation between the continental
    United States and noncontiguous states, districts, territories, and
    possessions embraced within the coastwise laws) which, while moving
    in the foreign trade of the United States, is transferred from a
    non-self-propelled barge certified by the owner or operator to be
    specifically designed for carriage aboard a vessel and regularly
    carried aboard a vessel in foreign trade to another such barge
    owned or leased by the same owner or operator, without regard to
    whether any such barge is under foreign registry or qualified to
    engage in the coastwise trade: Provided further, That until April
    1, 1984, and notwithstanding any other provisions of this section,
    any vessel documented under the laws of the United States and owned
    by persons who are citizens of the United States may, when operated
    upon a voyage in foreign trade, transport merchandise in cargo
    vans, lift vans, and shipping-tanks between points embraced within
    the coastwise laws for transfer to or when transferred from another
    vessel or vessels, so documented and owned, of the same operator
    when the merchandise movement has either a foreign origin or a
    foreign destination; but this proviso (1) shall apply only to
    vessels which that same operator owned, chartered or contracted for
    the construction of prior to November 16, 1979, and (2) shall not
    apply to movements between points in the contiguous United States
    and points in Hawaii, Alaska, the Commonwealth of Puerto Rico and
    United States territories and possessions. For the purposes of this
    section, after December 31, 1983, or after such time as an
    appropriate vessel has been constructed and documented as a vessel
    of the United States, the transportation of hazardous waste, as
    defined in section 6903(5) of title 42, from a point in the United
    States for the purpose of the incineration at sea of that waste
    shall be deemed to be transportation by water of merchandise
    between points in the United States: Provided, however, That the
    provisions of this sentence shall not apply to this transportation
    when performed by a foreign-flag ocean incineration vessel, owned
    by or under construction on May 1, 1982, for a corporation wholly
    owned by a citizen of the United States; the term "citizen of the
    United States", as used in this proviso, means a corporation as
    defined in section 802(a) and (b) of this Appendix. The
    incineration equipment on these vessels shall meet all current
    United States Coast Guard and Environmental Protection Agency
    standards. These vessels shall, in addition to any other
    inspections by the flag state, be inspected by the United States
    Coast Guard, including drydock inspections and internal
    examinations of tanks and void spaces, as would be required of a
    vessel of the United States. Satisfactory inspection shall be
    certified in writing by the Secretary of Transportation. Such
    inspections may occur concurrently with any inspections required by
    the flag state or subsequent to but no more than one year after the
    initial issuance or the next scheduled issuance of the Safety of
    Life at Sea Safety Construction Certificate. In making such
    inspections, the Coast Guard shall refer to the conditions
    established by the initial flag state certification as the basis
    for evaluating the current condition of the hull and
    superstructure. The Coast Guard shall allow the substitution of an
    equivalent fitting, material, appliance, apparatus, or equipment
    other than that required for vessels of the United States if the
    Coast Guard has been satisfied that fitting, material, appliance,
    apparatus, or equipment is at least as effective as that required
    for vessels of the United States (!3) Provided further, That for
    the purposes of this section, supplies aboard United States
    documented fish processing vessels, which are necessary and used
    for the processing or assembling of fishery products aboard such
    vessels, shall be considered ship's equipment and not merchandise:
    Provided further, That for purposes of this section, the term
    "merchandise" includes valueless material: Provided further, That
    this section applies to the transportation of valueless material or
    any dredged material regardless of whether it has commercial value,
    from a point or place in the United States or a point or place on
    the high seas within the Exclusive Economic Zone as defined in the
    Presidential Proclamation of March 10, 1983, to another point or
    place in the United States or a point or place on the high seas
    within that Exclusive Economic Zone: Provided further, That the
    transportation of any platform jacket in or on a non-coastwise
    qualified launch barge, that was built before December 31, 2000,
    and has a launch capacity of 12,000 long tons or more, between two
    points in the United States, at one of which there is an
    installation or other device within the meaning of section 1333(a)
    of title 43, shall not be deemed transportation subject to this
    section if the Secretary of Transportation makes a determination,
    in accordance with procedures established pursuant to this proviso
    that a suitable coastwise-qualified vessel is not available for use
    in the transportation and, if needed, launch or installation of a
    platform jacket and; that the Secretary of Transportation shall
    adopt procedures implementing this proviso that are reasonably
    designed to provide timely information so as to maximize the use of
    coastwise qualified-vessels, which procedures shall, among other
    things, establish that for purposes of this proviso, a coastwise-
    qualified vessel shall be deemed to be not available only (1) if
    upon application by an owner or operator for the use of a non-
    coastwise qualified launch barge for transportation of a platform
    jacket under this section, which application shall include all
    relevant information, including engineering details and timing
    requirements, the Secretary promptly publishes a notice in the
    Federal Register describing the project and the platform jacket
    involved, advising that all relevant information reasonably needed
    to assess the transportation requirements for the platform jacket
    will be made available to interested parties upon request, and
    requesting that information on the availability of coastwise-
    qualified vessels be submitted within 30 days after publication of
    that notice; and (2) if either (A) no information is submitted to
    the Secretary within that 30 day period, or (B) although the owner
    or operator of a coastwise-qualified vessel submits information to
    the Secretary asserting that the owner or operator has a suitable
    coastwise-qualified vessel available for this transportation, the
    Secretary, within 90 days of the date on which the notice is first
    published determines that the coastwise-qualified vessel is not
    suitable or reasonably available for the transportation; and that,
    for the purposes of this proviso, the term "coastwise-qualified
    vessel" means a vessel that has been issued a certificate of
    documentation with a coastwise endorsement under section 12106 of
    title 46 and the term "platform jacket" refers to a single physical
    component and includes any type of offshore exploration,
    development, or production structure or component thereof,
    including platform jackets, tension leg or SPAR platform
    superstructures (including the deck, drilling rig and support
    utilities, and supporting structure), hull (including vertical legs
    and connecting pontoons or vertical cylinder), tower and base
    sections of a platform jacket, jacket structures, and deck modules
    (known as "topsides").

-SOURCE-
    (June 5, 1920, ch. 250, Sec. 27, 41 Stat. 999; Ex. Ord. No. 6166,
    Sec. 12, eff. June 10, 1933; Apr. 11, 1935, ch. 58, 49 Stat. 154;
    July 2, 1935, ch. 355, 49 Stat. 442; June 29, 1936, ch. 858, title
    II, Sec. 204, title IX, Sec. 904, 49 Stat. 1987, 2016; 1950 Reorg.
    Plan No. 21, Sec. 204, eff. May 24, 1950, 15 F.R. 3178, 64 Stat.
    1276; July 14, 1956, ch. 600, Sec. 1, 70 Stat. 544; Pub. L. 85-508,
    Sec. 27(a), July 7, 1958, 72 Stat. 351; Pub. L. 86-583, Sec. 1,
    July 5, 1960, 74 Stat. 321; Pub. L. 89-194, Sept. 21, 1965, 79
    Stat. 823; Pub. L. 90-474, Aug. 11, 1968, 82 Stat. 700; Pub. L. 92-
    163, Sec. 1, Nov. 23, 1971, 85 Stat. 486; Pub. L. 95-410, title
    II, Sec. 213, Oct. 3, 1978, 92 Stat. 904; Pub. L. 96-112, Sec. 4,
    Nov. 16, 1979, 93 Stat. 848; Pub. L. 97-31, Sec. 12(49), Aug. 6,
    1981, 95 Stat. 157; Pub. L. 97-389, title V, Secs. 502, 504, Dec.
    29, 1982, 96 Stat. 1954, 1956; Pub. L. 100-239, Sec. 6(c)(1), Jan.
    11, 1988, 101 Stat. 1782; Pub. L. 100-329, Sec. 1(a), June 7, 1988,
    102 Stat. 588; Pub. L. 102-587, title V, Sec. 5501(b), Nov. 4,
    1992, 106 Stat. 5085; Pub. L. 104-324, title VII, Sec. 747, title
    XI, Sec. 1120(e), Oct. 19, 1996, 110 Stat. 3943, 3978; Pub. L. 107-
    295, title II, Sec. 213(c), Nov. 25, 2002, 116 Stat. 2100; Pub. L.
    108-293, title IV, Sec. 417, Aug. 9, 2004, 118 Stat. 1048.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 22 of this Act, referred to in text, is section 22 of act
    June 5, 1920, which was classified to section 13 of former Title
    46, Shipping, and was repealed by Pub. L. 100-710, title II, Sec.
    202(4), Nov. 23, 1988, 102 Stat. 4753.
      The Presidential Proclamation of March 10, 1983, referred to in
    text, is Proc. No. 5030, Mar. 10, 1983, 48 F.R. 10605, which is set
    out as a note under section 1453 of Title 16, Conservation.

-MISC1-
                             PRIOR PROVISIONS                         
      Provisions similar to those in this section were contained in act
    Feb. 17, 1898, ch. 26, Sec. 1, 30 Stat. 248, which was classified
    to section 290 of this Appendix.

                                AMENDMENTS                            
      2004 - Pub. L. 108-293 amended thirteenth proviso pertaining to
    transportation by launch barge generally. Prior to amendment,
    proviso read as follows: "Provided further, That the transportation
    of any platform jacket in or on a launch barge between two points
    in the United States, at one of which there is an installation or
    other device within the meaning of section 1333(a) of title 43,
    shall not be deemed transportation subject to this section if the
    launch barge has a launch capacity of 12,000 long tons or more, was
    built as of June 7, 1988, and is documented under the laws of the
    United States, and the platform jacket cannot be transported on and
    launched from a launch barge of lesser launch capacity that is
    identified by the Secretary of Transportation and is available for
    such transportation; and for the purposes of this proviso, the term
    'platform jacket' includes any type of offshore drilling or
    production structure or components, including platform jackets,
    tension leg or SPAR platform superstructures (including the deck,
    drilling rig and support utilities, and supporting structure) hull
    (including vertical legs and connecting pontoons or vertical
    cylinder), tower and base sections of a platform jacket, jacket
    structures, and deck modules (known as 'topsides') of a hydrocarbon
    development and production platform."
      2002 - Pub. L. 107-295 in proviso pertaining to transportation by
    launch barge, inserted before period at end "; and for the purposes
    of this proviso, the term 'platform jacket' includes any type of
    offshore drilling or production structure or components, including
    platform jackets, tension leg or SPAR platform superstructures
    (including the deck, drilling rig and support utilities, and
    supporting structure) hull (including vertical legs and connecting
    pontoons or vertical cylinder), tower and base sections of a
    platform jacket, jacket structures, and deck modules (known as
    'topsides') of a hydrocarbon development and production platform".
      1996 - Pub. L. 104-324 in first proviso inserted "of more than
    200 gross tons (as measured under chapter 143 of title 46)" after
    "no vessel", in third proviso substituted "Surface Transportation
    Board" for "Interstate Commerce Commission" and "the Board" for
    "said Commission", and in fifth proviso substituted "Surface
    Transportation Board" for "Interstate Commerce Commission" the
    first place appearing and "Board" for "Interstate Commerce
    Commission" the second place appearing.
      1992 - Pub. L. 102-587, in first sentence, substituted "No
    merchandise, including merchandise owned by the United States
    Government, a State (as defined in section 2101 of the title 46),
    or a subdivision of a State," for "No merchandise".
      1988 - Pub. L. 100-329 inserted provision relating to alternate
    determination of penalty as based on actual cost of the
    transportation, and provisos defining term "merchandise" to include
    valueless material, making section applicable to valueless or
    dredged material, and relating to transportation of any platform
    jacket in or on a launch barge.
      Pub. L. 100-239 struck out "of more than five hundred gross tons"
    after "no vessel" in second proviso.
      1982 - Pub. L. 97-389, Sec. 502, inserted provision relating to
    the transportation of hazardous waste, the proviso thereto for
    foreign-flag transport, and further provisions relating to
    standards for and the inspection of vessels engaged in such
    transport.
      Pub. L. 97-389, Sec. 504, inserted proviso defining supplies
    aboard United States fish processing vessels used for fishery
    products manufacture as ship's equipment.
      1981 - Pub. L. 97-31 in fourth proviso substituted "Secretary of
    Transportation" for "Secretary of Commerce". For prior transfers of
    functions, see Transfer of Functions note below.
      1979 - Pub. L. 96-112 inserted proviso that, until April 1, 1984,
    and notwithstanding any other provisions of this section, any
    vessel documented under the laws of the United States and owned by
    citizens of the United States could, when operated upon a voyage in
    foreign trade, transport merchandise in cargo vans, lift vans, and
    shipping-tanks between points embraced within the coastwise laws
    for transfer to or when transferred from another vessel or vessels,
    so documented and owned, of the same operator when the merchandise
    movement had either a foreign origin or a foreign destination, but
    that the proviso would apply only to vessels which that same
    operator owned, chartered or contracted for the construction of
    prior to Nov. 16, 1979, and would not apply to movements between
    points in the contiguous United States and points in Hawaii,
    Alaska, the Commonwealth of Puerto Rico and United States
    territories and possessions.
      1978 - Pub. L. 95-410, in first sentence, substituted "forfeiture
    of merchandise" for "forfeiture thereof" and inserted parenthetical
    text for forfeiture of a monetary amount up to the value of the
    merchandise as determined by the Secretary of the Treasury to be
    recovered from any consignor, seller, owner, importer, consignee,
    agent, or other person or persons transporting or causing the
    merchandise to be transported.
      1971 - Pub. L. 92-163 inserted "and equipment, excluding
    propulsion equipment, for use with such barges" after "(c) empty
    barges specifically designed for carriage aboard a vessel" and
    inserted reciprocity proviso reciprocally permitting foreign-flag
    specialty barges, specifically designed and regularly carried
    aboard a barge carrying ship in foreign trade to carry export or
    import cargo between United States points which has been
    transferred from one such barge to another.
      1968 - Pub. L. 90-474 in final proviso designated existing
    provisions relating to empty cargo vans, empty lift vans, and empty
    shipping tanks as cl. (a), added cls. (b) to (d), saved modifying
    provisions relating to empty cargo vans, empty lift vans, and empty
    shipping tanks so as to render them applicable to cls. (a) to (d),
    and added cl. (e).
      1965 - Pub. L. 89-194 inserted proviso that section should not
    apply to the transportation of empty cargo vans, lift vans, and
    shipping tanks by vessels of the United States not qualified to
    engage in the coastwise trade or by vessels of foreign registry so
    long as such vans or tanks are owned or leased by the owner or
    operator of the transporting vessels and are being transported for
    use in the carriage of goods in foreign trade.
      1960 - Pub. L. 86-583 prohibits the operation in the coastwise
    trade of a rebuilt vessel unless the entire rebuilding, including
    the construction of any major components of the hull and
    superstructure of the vessel, is accomplished in the United States.
      1958 - Pub. L. 85-508 substituted "including Alaska" for
    "excluding Alaska".
      1956 - Act July 14, 1956, inserted proviso to prohibit the
    operation in coastwise trade of vessels of more than 500 gross tons
    which have been rebuilt outside the United States.
      1935 - Act July 2, 1935, amended section generally.
      Act Apr. 11, 1935, inserted fifth proviso.

                     EFFECTIVE DATE OF 1988 AMENDMENT                 
      Section 6(c)(2) of Pub. L. 100-239 provided that: "Paragraph (1)
    of this subsection [amending this section] does not apply to a
    vessel under contract to be purchased or rebuilt entered into
    before July 28, 1987, if that vessel is rebuilt before July 28,
    1990."

                     EFFECTIVE DATE OF 1960 AMENDMENT                 
      Section 4 of Pub. L. 86-583 provided that: "This Act [amending
    this section and section 883a of this Appendix] shall be effective
    from the time of enactment [July 5, 1960] hereof: Provided,
    however, That no vessel shall be deemed to have lost its coastwise
    privileges as a result of the amendments made by this Act if it is
    rebuilt within the United States, its Territories (not including
    trust territories), or its possessions under a contract executed
    before such date of enactment and if the work of rebuilding is
    commenced not later than twenty-four months after such date of
    enactment."

                     EFFECTIVE DATE OF 1956 AMENDMENT                 
      Section 4 of act July 14, 1956, provided that: "This Act
    [amending this section and enacting sections 883a and 883b of this
    Appendix] shall be effective from the date of enactment [July 14,
    1956] hereof: Provided, however, That no vessel shall be deemed to
    have lost its coastwise privileges hereunder if it is rebuilt under
    a contract entered into before such date of enactment and if the
    work of rebuilding is commenced not later than six months after
    such date of enactment."

                                REGULATIONS                            
      Section 3 of Pub. L. 86-583 provided that: "The Secretary of the
    Treasury shall prescribe such regulations as may be necessary to
    carry out the purposes of this Act [amending sections 883 and 883a
    of this Appendix]."

                                  REPEALS                              
      For effect of subtitle IV (Sec. 10101 et seq.) of Title 49,
    Transportation, see note set out preceding section 801 of this
    Appendix.

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      For transfer of authorities, functions, personnel, and assets of
    the Coast Guard, including the authorities and functions of the
    Secretary of Transportation relating thereto, to the Department of
    Homeland Security, and for treatment of related references, see
    sections 468(b), 551(d), 552(d), and 557 of Title 6, Domestic
    Security, and the Department of Homeland Security Reorganization
    Plan of November 25, 2002, as modified, set out as a note under
    section 542 of Title 6.
      Functions conferred upon Secretary of Commerce by provisions of
    Reorg. Plan No. 21 of 1950 to remain vested in Secretary except to
    extent inconsistent with sections 101(b) and 104(b) of Reorg. Plan
    No. 7 of 1961. See section 202 of Reorg. Plan No. 7 of 1961, set
    out under section 1111 of this Appendix.
      "Secretary of Commerce" substituted in text for "United States
    Maritime Commission" on authority of Reorg. Plan No. 21 of 1950,
    set out under section 1111 of this Appendix, section 306 of which
    abolished United States Maritime Commission and section 204 of
    which transferred to Secretary of Commerce such Commission's
    functions not transferred to Federal Maritime Board.
      Previously, "United States Maritime Commission" substituted for
    "Shipping Board". For dissolution of Board and transfer of
    functions to United States Maritime Commission, see Ex. Ord. No.
    6166 and act June 29, 1936. Ex. Ord. No. 6166 is set out as a note
    under section 901 of Title 5, Government Organization and
    Employees. Executive and administrative functions of United States
    Maritime Commission transferred to Chairman thereof by Reorg. Plan
    No. 6 of 1949, eff. Aug. 20, 1949, 14 F.R. 5228, 63 Stat. 1069, set
    out under section 1111 of this Appendix.

-MISC2-
           CERTIFICATE OF DOCUMENTATION FOR LIQUIFIED GAS TANKER       
      Section 1120(f) of Pub. L. 104-324 provided that:
    "Notwithstanding section 27 of the Merchant Marine Act, 1920 (46
    App. U.S.C. 883), section 12106 of title 46, United States Code,
    section 506 of the Merchant Marine Act, 1936 (46 App. U.S.C. 1156)
    and any agreement with the United States Government, the Secretary
    of Transportation may issue a certificate of documentation with a
    coastwise endorsement for a vessel to transport liquified natural
    gas or liquified petroleum gas to the Commonwealth of Puerto Rico
    from other ports in the United States, if the vessel - 
        "(1) is a foreign built vessel that was built prior to the date
      of enactment of this Act [Oct. 19, 1996]; or
        "(2) is documented under chapter 121 of title 46, United States
      Code, before the date of enactment of this Act, even if the
      vessel is placed under a foreign registry and subsequently
      redocumented under that chapter for operation under this
      section."

          NONAPPLICABILITY OF PUB. L. 100-329 TO CERTAIN VESSELS      
      Section 5501(c) of Pub. L. 102-587 provided that: "The Act of
    June 7, 1988 (Public Law 100-329; 102 Stat. 588) [amending this
    section and section 316 of this Appendix, and enacting provisions
    set out above and below], including the amendments made by that
    Act, does not apply to a vessel - 
        "(1) engaged in the transportation of valueless material or
      valueless dredged material; and
        "(2) owned or chartered by a corporation that had on file with
      the Secretary of Transportation on August 1, 1989, the
      certificate specified in section 27A of the Merchant Marine Act,
      1920 (46 App. U.S.C. 883-1)."

      LAUNCH BARGE INVENTORY; PURPOSE; DEVELOPMENT, MAINTENANCE, AND
     UPDATING; CONTENTS; PUBLICATION OF INITIAL AND CURRENT INVENTORY
      Section 1(b) of Pub. L. 100-329 provided that:
      "(1) For purposes of interpreting the proviso pertaining to
    transportation of any platform jacket by launch barge, as added by
    subsection (a) of this section to section 27 of the Merchant Marine
    Act, 1920 (46 App. U.S.C. 883), the Secretary of Transportation
    shall develop, maintain, and periodically update an inventory of
    launch barges with less than a launch capacity of 12,000 long tons
    that are qualified to engage in the coastwise trade. Each launch
    barge listed on such inventory shall be identified by its name,
    launch capacity, length, beam, depth, and other distinguishing
    characteristics. For each such launch barge, the name and address
    of the person to whom inquiries may be made shall also be included
    on the inventory. A launch barge not listed on such inventory shall
    be deemed not to be 'a launch barge of lesser launch capacity
    identified by the Secretary of Transportation' within the meaning
    of such proviso to section 27 of the Merchant Marine Act, 1920.
      "(2) Not later than 15 days after the date of enactment of this
    Act [June 7, 1988], the Secretary of Transportation shall publish
    in the Federal Register an initial inventory of launch barges
    developed and maintained in accordance with paragraph (1) of this
    subsection.
      "(3) Not later than 60 days after the date of enactment of this
    Act [June 7, 1988], and periodically thereafter, the Secretary
    shall publish in the Federal Register a current inventory of launch
    barges developed, maintained, and updated in accordance with
    paragraph (1) of this subsection."

                 TRANSPORTATION OF MUNICIPAL SEWAGE SLUDGE             
      Section 3 of Pub. L. 100-329 provided that: "Notwithstanding the
    provisions of section 1 of this Act [amending this section and
    enacting provisions set out as a note above], a vessel may
    transport municipal sewage sludge if that vessel, regardless of
    where it was built, is documented under the laws of the United
    States and, on the date of enactment of this Act [June 7, 1988],
    that vessel - 
        "(1) is in use by a municipality for the transportation of
      sewage sludge; or
        "(2) is under contract with a municipality for the
      transportation of sewage sludge."

       VESSEL UNDER CONTRACT WITH MUNICIPALITY FOR TRANSPORTATION OF
                SEWAGE SLUDGE: APPLICABILITY OF PROVISIONS
      Section 4 of Pub. L. 100-329 provided that: "For purposes of the
    first paragraph of section 805(a) of the Merchant Marine Act, 1936
    (46 App. U.S.C. 1223(a)), a vessel described in section 3(2) of
    this Act [set out as a note above] is not a vessel engaged in
    domestic intercoastal or coastwise service, but the prohibitions in
    the second paragraph apply to that vessel."

       CERTIFICATE OF DOCUMENTATION TO VESSEL TRANSPORTING VALUELESS
    MATERIAL IN COASTWISE TRADE, OR DREDGED MATERIAL, WHETHER OR NOT OF
                    VALUE; ISSUANCE, ENDORSEMENT, ETC.
      Section 5 of Pub. L. 100-329 provided that: "Notwithstanding the
    provisions of section 1 of this Act [amending this section and
    enacting provisions set out as a note above], the Secretary of the
    department in which the Coast Guard is operating may issue a
    certificate of documentation under section 12106 of title 46,
    United States Code, to a vessel that - 
        "(1) is engaged in transporting only valueless material in the
      coastwise trade or transporting dredged material, whether or not
      of value, (A) from a point or place on the high seas within the
      Exclusive Economic Zone as defined in the Presidential
      Proclamation of March 10, 1983 [16 U.S.C. 1453 note], to a point
      or place in the United States or to another point or place on the
      high seas within such Exclusive Economic Zone or (B) from a point
      or place within the United States to a point or place on the high
      seas within such Exclusive Economic Zone;
        "(2) had a certificate of documentation issued under section
      12105 of that title on October 1, 1987;
        "(3) had been sold foreign or placed under a foreign registry
      before that certificate was issued; and
        "(4) was built in the United States;
    except that such certificate of documentation shall be endorsed to
    restrict the use of such vessel to the transportation of valueless
    material in the coastwise trade, and to the transportation of
    dredged material, whether or not of value, (i) from a point or
    place on the high seas within such Exclusive Economic Zone to a
    point or place in the United States or to another point or place on
    the high seas within such Exclusive Economic Zone, or (ii) from a
    point or place within the United States to a point or place on the
    high seas within such Exclusive Economic Zone."

       TRANSPORTATION OF MERCHANDISE OR PASSENGERS WITHIN ALASKA BY
                         FOREIGN BUILT HOVERCRAFT
      Pub. L. 95-599, title I, Sec. 146, Nov. 6, 1978, 92 Stat. 2714,
    provided that:
      "(a) Effective during the five-year period beginning on the date
    of enactment of this Act [Nov. 6, 1978], nothing in section 27 of
    the Merchant Marine Act, 1920 [this section], or any other
    provision of law restricting the coastwise trade to vessels of the
    United States shall prohibit the transportation within the State of
    Alaska of merchandise or passengers by foreign built hovercraft.
      "(b) For the purpose of this section the term 'hovercraft' means
    a vehicle which travels over land or water in a cushion of air
    generated by such vehicle."

       REPORT TO CONGRESS REGARDING EFFECT OF RECIPROCITY PROVISIONS   
      Section 2 of Pub. L. 92-163 authorized the Secretary of the
    Treasury, for a period of five years following Nov. 23, 1971, to
    make a report at the beginning of each regular session to the
    Congress regarding activities under Pub. L. 92-163, including but
    not limited to the extent to which foreign governments are
    extending reciprocal privileges to the vessels of the United
    States.

                       ADMISSION OF ALASKA AS STATE                   
      Effectiveness of amendment of this section by Pub. L. 85-508 was
    dependent upon the admission of Alaska into the Union under section
    8(b) of Pub. L. 85-508. Admission was accomplished Jan. 3, 1959, on
    issuance of Proc. No. 3269, Jan. 3, 1959, 24 F.R. 81, 73 Stat. c16,
    as required by sections 1 and 8(c) of Pub. L. 85-508. See notes
    preceding section 21 of Title 48, Territories and Insular
    Possessions.

    JURISDICTION OVER COMMON CARRIERS BETWEEN PORTS IN HAWAII AND OTHER
                                   PORTS
      Pub. L. 86-3, Sec. 18(a), Mar. 18, 1959, 73 Stat. 12, as amended
    Pub. L. 86-624, Sec. 46, July 12, 1960, 74 Stat. 423, provided
    that: "Nothing contained in this Act shall be construed as
    depriving the Federal Maritime Board [now Secretary of
    Transportation] of the exclusive jurisdiction heretofore conferred
    on it over common carriers engaged in transportation by water
    between any port in the State of Hawaii and other ports in the
    United States, or possessions, or as conferring on the Interstate
    Commerce Commission jurisdiction over transportation by water
    between any such ports."
      [Interstate Commerce Commission abolished and functions of
    Commission transferred, except as otherwise provided in Pub. L. 104-
    88, to Surface Transportation Board effective Jan. 1, 1996, by
    section 702 of Title 49, Transportation, and section 101 of Pub. L.
    104-88, set out as a note under section 701 of Title 49. References
    to Interstate Commerce Commission deemed to refer to Surface
    Transportation Board, a member or employee of the Board, or
    Secretary of Transportation, as appropriate, see section 205 of
    Pub. L. 104-88, set out as a note under section 701 of Title 49.]

    JURISDICTION OVER COMMON CARRIERS BETWEEN PORTS IN ALASKA AND OTHER
                                   PORTS
      Section 27(b) of Pub. L. 85-508 provided that: "Nothing contained
    in this or any other Act shall be construed as depriving the
    Federal Maritime Board [now Secretary of Transportation] of the
    exclusive jurisdiction heretofore conferred on it over common
    carriers engaged in transportation by water between any port in the
    State of Alaska and other ports in the United States, its
    Territories or possessions, or as conferring upon the Interstate
    Commerce Commission jurisdiction over transportation by water
    between any such ports."
      [Interstate Commerce Commission abolished and functions of
    Commission transferred, except as otherwise provided in Pub. L. 104-
    88, to Surface Transportation Board effective Jan. 1, 1996, by
    section 702 of Title 49, Transportation, and section 101 of Pub. L.
    104-88, set out as a note under section 701 of Title 49. References
    to Interstate Commerce Commission deemed to refer to Surface
    Transportation Board, a member or employee of the Board, or
    Secretary of Transportation, as appropriate, see section 205 of
    Pub. L. 104-88, set out as a note under section 701 of Title 49.]

                  TRANSPORTATION OF LUMBER TO PUERTO RICO              
      Pub. L. 87-877, Sec. 4, Oct. 24, 1962, 76 Stat. 1201, allowed for
    suspension of this section during a 1-year period beginning Oct.
    24, 1962, with respect to transportation of lumber to Puerto Rico
    from ports or terminal areas in the United States if Secretary of
    Commerce determined that no domestic vessel was reasonably
    available.

    TRANSPORTATION OF COAL BETWEEN POINTS IN UNITED STATES IN CANADIAN
                                  VESSELS
      Act Aug. 7, 1956, ch. 1028, 70 Stat. 1090, permitted Canadian
    vessels to transport coal to Ogdensburg, N.Y., from other points in
    the United States, on the Great Lakes, or their connecting or
    tributary waters for a period ending June 30, 1957.

        TRANSPORTATION OF IRON ORE IN VESSELS OF CANADIAN REGISTRY    
      Act June 24, 1952, ch. 458, 66 Stat. 156, provided for the
    transportation of iron ore and terminated on Dec. 31, 1952. Similar
    provisions were contained in the following acts:
      Mar. 29, 1951, ch. 25, 65 Stat. 28.
      June 30, 1950, ch. 427, Sec. 5, 64 Stat. 309.
      Mar. 28, 1949, ch. 36, 63 Stat. 16.
      Mar. 24, 1948, ch. 144, 62 Stat. 84.
      Jan. 27, 1942, ch. 21, 56 Stat. 19, as amended Aug. 1, 1942, ch.
    544, 56 Stat. 735, and repealed July 25, 1947, ch. 327, Sec. 2b, 61
    Stat. 451, eff. six months after July 25, 1947.
      May 31, 1941, ch. 158, 55 Stat. 236.

    TRANSPORTATION OF GRAIN BETWEEN UNITED STATES PORTS ON GREAT LAKES
                BY VESSELS OF CANADIAN REGISTRY DURING 1951
      Act Oct. 10, 1951, ch. 459, 65 Stat. 371, provided for the
    transportation of grain and terminated on Dec. 31, 1951.

      TRANSPORTATION OF MERCHANDISE BETWEEN HYDER, ALASKA, AND UNITED
                                  STATES
      Act July 30, 1947, ch. 387, 61 Stat. 632, as amended June 28,
    1948, ch. 693, 62 Stat. 1067, provided for the transportation of
    merchandise between Hyder, Alaska, and United States and terminated
    on June 30, 1949.

-FOOTNOTE-
    (!1) So in original. The word "the" probably should not appear.

    (!2) See References in Text note below.

    (!3) So in original. Probably should be followed by a colon.

-End-

-CITE-
    46 USC APPENDIX Sec. 883-1                                  01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 24 - MERCHANT MARINE ACT, 1920

-HEAD-
    Sec. 883-1. Corporation as citizen; fisheries and transportation of
      merchandise or passengers between points in United States; parent
      and subsidiary corporations; domestic built vessels; certificate;
      surrender of documents on change in status

-STATUTE-
      Notwithstanding any other provision of law, a corporation
    incorporated under the laws of the United States or any State,
    Territory, District, or possession thereof, shall be deemed to be a
    citizen of the United States for the purposes of and within the
    meaning of that term as used in sections 316, 808, 835, and 883 of
    this Appendix, and the laws relating to the documentation of
    vessels, if it is established by a certificate filed with the
    Secretary of the Treasury as hereinafter provided, that - 
        (a) a majority of the officers and directors of such
      corporation are citizens of the United States;
        (b) not less than 90 per centum of the employees of such
      corporation are residents of the United States;
        (c) such corporation is engaged primarily in a manufacturing or
      mineral industry in the United States or any Territory, District,
      or possession thereof;
        (d) the aggregate book value of the vessels owned by such
      corporation does not exceed 10 per centum of the aggregate book
      value of the assets of such corporation; and
        (e) such corporation purchases or produces in the United
      States, its Territories, or possessions not less than 75 per
      centum of the raw materials used or sold in its operations

    but no vessel owned by any such corporation shall engage in the
    fisheries or in the transportation of merchandise or passengers for
    hire between points in the United States, including Territories,
    Districts, and possessions thereof, embraced within the coastwise
    laws, except as a service for a parent or subsidiary corporation
    and except when such vessel is under demise or bareboat charter at
    prevailing rates for use otherwise than in the domestic
    noncontiguous trades from any such corporation to a carrier subject
    to jurisdiction under subchapter II of chapter 135 of title 49,
    which otherwise qualifies as a citizen under sections 802 and 803
    of this Appendix, and which is not connected, directly or
    indirectly, by way of ownership or control with such corporation.
      As used herein (1), the term "parent" means a corporation which
    controls, directly or indirectly, at least 50 per centum of the
    voting stock of such corporation, and (2), the term "subsidiary"
    means a corporation not less than 50 per centum of the voting stock
    of which is controlled, directly or indirectly, by such corporation
    or its parent, but no corporation shall be deemed to be a "parent"
    or "subsidiary" hereunder unless it is incorporated under the laws
    of the United States, or any State, Territory, District, or
    possession thereof, and there has been filed with the Secretary of
    the Treasury a certificate as hereinafter provided.
      Vessels built in the United States and owned by a corporation
    meeting the conditions hereof which are non-self-propelled or
    which, if self-propelled, are of less than five hundred gross tons
    as measured under section 14502 of title 46, or an alternate
    tonnage measured under section 14302 of that title as prescribed by
    the Secretary under section 14104 of that title, shall be entitled
    to documentation under the laws of the United States, and except as
    restricted by this section, shall be entitled to engage in the
    coastwise trade and, together with their owners or masters, shall
    be entitled to all the other benefits and privileges and shall be
    subject to the same requirements, penalties, and forfeitures as may
    be applicable in the case of vessels built in the United States and
    otherwise documented or exempt from documentation under the laws of
    the United States.
      A corporation seeking hereunder to document a vessel under the
    laws of the United States or to operate a vessel exempt from
    documentation under the laws of the United States shall file with
    the Secretary of the Treasury of the United States a certificate
    under oath, in such form and at such times as may be prescribed by
    him, executed by its duly authorized officer or agent, establishing
    that such corporation complies with the conditions of this section
    above set forth. A "parent" or "subsidiary" of such corporation
    shall likewise file with the Secretary of the Treasury a
    certificate under oath, in such form and at such time as may be
    prescribed by him, executed by its duly authorized officer or
    agent, establishing that such "parent" or "subsidiary" complies
    with the conditions of this section above set forth, before such
    corporation may transport any merchandise or passengers for such
    parent or subsidiary. If any material matter of fact alleged in any
    such certificate which, within the knowledge of the party so
    swearing is not true, there shall be a forfeiture of the vessel (or
    the value thereof) documented or operated hereunder in respect to
    which the oath shall have been made. If any vessel shall transport
    merchandise for hire in violation of this section, such merchandise
    shall be forfeited to the United States. If any vessel shall
    transport passengers for hire in violation of this section, such
    vessel shall be subject to a penalty of $200 for each passenger so
    transported. Any penalty or forfeiture incurred under this section
    may be remitted or mitigated by the Secretary of the Treasury under
    the provisions of section 2107(b) of title 46.
      Any corporation which has filed a certificate with the Secretary
    of the Treasury as provided for herein shall cease to be qualified
    under this section if there is any change in its status whereby it
    no longer meets the conditions above set forth, and any documents
    theretofore issued to it, pursuant to the provisions of this
    section, shall be forthwith surrendered by it to the Secretary of
    the Treasury.

-SOURCE-
    (June 5, 1920, ch. 250, Sec. 27A, as added Pub. L. 85-902, Sept. 2,
    1958, 72 Stat. 1736; amended Pub. L. 104-88, title III, Sec.
    321(2), Dec. 29, 1995, 109 Stat. 950; Pub. L. 104-324, title VII,
    Sec. 706, Oct. 19, 1996, 110 Stat. 3934.)

-COD-
                               CODIFICATION                           
      In fourth par., "section 2107(b) of title 46" substituted for
    "section 7 of title 46, United States Code" on authority of Pub. L.
    98-89, Sec. 2(b), Aug. 26, 1983, 97 Stat. 598, section 1 of which
    enacted Title 46, Shipping.

-MISC1-
                                AMENDMENTS                            
      1996 - Pub. L. 104-324, in third par., inserted "as measured
    under section 14502 of title 46, or an alternate tonnage measured
    under section 14302 of that title as prescribed by the Secretary
    under section 14104 of that title," after "five hundred gross
    tons".
      1995 - Pub. L. 104-88, in first par., substituted "carrier
    subject to jurisdiction under subchapter II of chapter 135 of title
    49, which otherwise" for "common or contract carrier subject to
    part 3 of the Interstate Commerce Act, as amended, which
    otherwise".

                     EFFECTIVE DATE OF 1995 AMENDMENT                 
      Amendment by Pub. L. 104-88 effective Jan. 1, 1996, see section 2
    of Pub. L. 104-88, set out as an Effective Date note under section
    701 of Title 49, Transportation.

-End-

-CITE-
    46 USC APPENDIX Sec. 883a                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 24 - MERCHANT MARINE ACT, 1920

-HEAD-
    Sec. 883a. Reports required of United States vessels rebuilt
      abroad; penalty for failure to report; mitigation of penalty

-STATUTE-
      If any vessel of more than five hundred gross tons as measured
    under section 14502 of title 46, or an alternate tonnage measured
    under section 14302 of that title as prescribed by the Secretary
    under section 14104 of that title documented under the laws of the
    United States, or last documented under such laws, is rebuilt, and
    any part of the rebuilding, including the construction of major
    components of the hull and superstructure of the vessel, is not
    effected within the United States, its Territories (not including
    trust territories) or its possessions, a report of the
    circumstances of such rebuilding shall be made to the Secretary of
    the Treasury, upon the first arrival of the vessel thereafter at a
    port within the customs territory of the United States, if rebuilt
    outside the United States, its Territories (not including trust
    territories), or its possessions, or, in any other case, upon
    completion of the rebuilding, in accordance with such regulations
    as the Secretary may prescribe. If the required report is not made,
    the vessel, together with its tackle, apparel, equipment, and
    furniture, shall be forfeited, and the master and owner shall each
    be liable to a penalty of $200. Any penalty or forfeiture incurred
    under this Act may be remitted or mitigated by the Secretary under
    the provisions of section 2107(b) of title 46.

-SOURCE-
    (July 14, 1956, ch. 600, Sec. 2, 70 Stat. 544; Pub. L. 86-583, Sec.
    2, July 5, 1960, 74 Stat. 321; Pub. L. 104-324, title VII, Sec.
    707, Oct. 19, 1996, 110 Stat. 3934.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This Act, referred to in text, means act July 14, 1956, ch. 600,
    70 Stat. 544, as amended, which enacted sections 883a, and 883b of
    this Appendix, amended section 883 of this Appendix, and enacted
    provisions set out as a note under section 883 of this Appendix.
    For complete classification of this Act to the Code, see Tables.

-COD-
                               CODIFICATION                           
      "Section 2107(b) of title 46" substituted in text for "section
    5294 of the Revised Statutes of the United States, as amended
    (U.S.C., title 46, sec. 7)" on authority of Pub. L. 98-89, Sec.
    2(b), Aug. 26, 1983, 97 Stat. 598, section 1 of which enacted Title
    46, Shipping.
      Section was enacted as part of act July 14, 1956, and not as part
    of act June 5, 1920, ch. 250, 41 Stat. 988, known as the Merchant
    Marine Act, 1920, which comprises this chapter.

-MISC1-
                                AMENDMENTS                            
      1996 - Pub. L. 104-324 inserted "as measured under section 14502
    of title 46, or an alternate tonnage measured under section 14302
    of that title as prescribed by the Secretary under section 14104 of
    that title" after "five hundred gross tons".
      1960 - Pub. L. 86-583 provided for a report of the rebuilding of
    any part of the vessel, including the construction of major
    components of the hull and superstructure of the vessel, and for a
    report upon completion of the rebuilding in certain cases.

                     EFFECTIVE DATE OF 1960 AMENDMENT                 
      Amendment by Pub. L. 86-583 effective July 5, 1960, and effect on
    rebuilding contracts executed before such date, see section 4 of
    Pub. L. 86-583, set out as a note under section 883 of this
    Appendix.

                              EFFECTIVE DATE                          
      Section effective July 14, 1956, see section 4 of act July 14,
    1956, set out as an Effective Date of 1956 Amendment note under
    section 883 of this Appendix.

                                REGULATIONS                            
      Secretary of the Treasury to prescribe regulations to carry out
    the purposes of this section, see section 3 of Pub. L. 86-583, set
    out as a note under section 883 of this Appendix.

-End-

-CITE-
    46 USC APPENDIX Sec. 883b                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 24 - MERCHANT MARINE ACT, 1920

-HEAD-
    Sec. 883b. Regulations

-STATUTE-
      The Secretary of the Treasury shall prescribe such regulations as
    may be necessary to carry out the purposes of this Act.

-SOURCE-
    (July 14, 1956, ch. 600, Sec. 3, 70 Stat. 544.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This Act, referred to in text, means act July 14, 1956, ch. 600,
    70 Stat. 544, as amended, which enacted sections 883a, and 883b of
    this Appendix, amended section 883 of this Appendix, and enacted
    provisions set out as a note under section 883 of this Appendix.
    For complete classification of this Act to the Code, see Tables.

-COD-
                               CODIFICATION                           
      Section was enacted as part of act July 14, 1956, and not as part
    of act June 5, 1920, ch. 250, 41 Stat. 988, known as the Merchant
    Marine Act, 1920, which comprises this chapter.

-MISC1-
                              EFFECTIVE DATE                          
      Section effective July 14, 1956, see section 4 of act July 14,
    1956, set out as an Effective Date of 1956 Amendment note under
    section 883 of this Appendix.

-End-

-CITE-
    46 USC APPENDIX Sec. 884                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 24 - MERCHANT MARINE ACT, 1920

-HEAD-
    Sec. 884. Charges for transportation subject to interstate
      transportation provisions

-STATUTE-
      No carrier shall charge, collect, or receive for transportation
    subject to subtitle IV of title 49 of persons or property, under
    any joint rate, fare, or charge, or under any export, import, or
    other proportional rate, fare, or charge, which is based in whole
    or in part on the fact that the persons or property affected
    thereby is to be transported to, or has been transported from, any
    port in a possession or dependency of the United States, or in a
    foreign country, by a carrier by water in foreign commerce, any
    lower rate, fare, or charge than that charged, collected, or
    received by it for the transportation of persons, or of a like kind
    of property, for the same distance, in the same direction, and over
    the same route, in connection with commerce wholly within the
    United States, unless the vessel so transporting such persons or
    property is, or unless it was at the time of such transportation by
    water, documented under the laws of the United States. Whenever the
    Secretary of Transportation is of the opinion, however, that
    adequate shipping facilities to or from any port in a possession or
    dependency of the United States or a foreign country are not
    afforded by vessels so documented he shall certify this fact to the
    Surface Transportation Board, and the Board may, by order, suspend
    the operation of the provisions of this section with respect to the
    rates, fares, and charges for the transportation by rail of persons
    and property transported from, or to be transported to such ports,
    for such length of time and under such terms and conditions as he
    may prescribe in such order, or in any order supplemental thereto.
    Such suspension of operation of the provisions of this section may
    be terminated by order of the Board whenever the Secretary of
    Transportation is of the opinion that adequate shipping facilities
    by such vessels to such ports are afforded and shall so certify to
    the Board.

-SOURCE-
    (June 5, 1920, ch. 250, Sec. 28, 41 Stat. 999; Ex. Ord. No. 6166,
    Sec. 12, eff. June 10, 1933; June 29, 1936, ch. 858, Secs. 204,
    904, 49 Stat. 1987, 2016; Pub. L. 97-31, Sec. 12(50), Aug. 6, 1981,
    95 Stat. 157; Pub. L. 104-88, title III, Sec. 321(3), Dec. 29,
    1995, 109 Stat. 950.)

-COD-
                               CODIFICATION                           
      "Subtitle IV of title 49" substituted in text for "the Interstate
    Commerce Act [49 U.S.C. 1 et seq.]" on authority of Pub. L. 95-473,
    Sec. 3(b), Oct. 17, 1978, 92 Stat. 1466, the first section of which
    enacted subtitle IV of Title 49, Transportation.

-MISC1-
                                AMENDMENTS                            
      1995 - Pub. L. 104-88 struck out "common" after first reference
    to "carrier", substituted "Surface Transportation Board" for
    "Interstate Commerce Commission", and substituted "Board" for
    "commission" wherever appearing.
      1981 - Pub. L. 97-31 substituted "Secretary of Transportation"
    for "Commission" in two places and "he" for "it". For prior
    transfers of functions, see Transfer of Functions note below.

                     EFFECTIVE DATE OF 1995 AMENDMENT                 
      Amendment by Pub. L. 104-88 effective Jan. 1, 1996, see section 2
    of Pub. L. 104-88, set out as an Effective Date note under section
    701 of Title 49, Transportation.

                                  REPEALS                              
      For effect of subtitle IV (Sec. 10101 et seq.) of Title 49,
    Transportation, see note set out preceding section 801 of this
    Appendix.

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      "Maritime Commission", meaning United States Maritime Commission,
    substituted in text for "board", meaning United States Shipping
    Board. For dissolution of Board and transfer of functions to United
    States Maritime Commission, see Ex. Ord. No. 6166 and act June 29,
    1936. Ex. Ord. No. 6166 is set out as a note under section 901 of
    Title 5, Government Organization and Employees. For subsequent
    transfers of functions, see Reorg. Plan No. 6 of 1949, Reorg. Plan
    No. 21 of 1950, and Reorg. Plan No. 7 of 1961, set out under
    section 1111 of this Appendix.

-End-

-CITE-
    46 USC APPENDIX Sec. 885                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 24 - MERCHANT MARINE ACT, 1920

-HEAD-
    Sec. 885. Association of marine insurance companies; application of
      antitrust laws

-STATUTE-
      (a) Whenever used in this section - 
        (1) The term "association" means any association, exchange,
      pool, combination, or other arrangement for concerted action; and
        (2) The term "marine insurance companies" means any persons,
      companies, or associations, authorized to write marine insurance
      or reinsurance under the laws of the United States or of a State,
      Territory, District, or possession thereof.

      (b) Nothing contained in the "antitrust laws" as designated in
    section 12 of title 15, shall be construed as declaring illegal an
    association entered into by marine insurance companies for the
    following purposes: To transact a marine insurance and reinsurance
    business in the United States and in foreign countries and to
    reinsure or otherwise apportion among its membership the risks
    undertaken by such association or any of the component members.

-SOURCE-
    (June 5, 1920, ch. 250, Sec. 29, 41 Stat. 1000.)

-End-

-CITE-
    46 USC APPENDIX Sec. 887                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 24 - MERCHANT MARINE ACT, 1920

-HEAD-
    Sec. 887. Partial invalidity

-STATUTE-
      If any provision of this Act is declared unconstitutional or the
    application of any provision to certain circumstances be held
    invalid, the remainder of such Act and the application of such
    provisions to circumstances other than those as to which it is held
    invalid shall not be affected thereby.

-SOURCE-
    (June 5, 1920, ch. 250, Sec. 36, 41 Stat. 1007.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This Act, referred to in text, means act June 5, 1920, ch. 250,
    41 Stat. 988, as amended, known as the Merchant Marine Act, 1920,
    which (except for sections repealed or reenacted in Title 46,
    Shipping) is classified principally to this chapter. For complete
    classification of this Act to the Code, see section 889 of this
    Appendix and Tables.

-End-

-CITE-
    46 USC APPENDIX Sec. 888                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 24 - MERCHANT MARINE ACT, 1920

-HEAD-
    Sec. 888. Definitions

-STATUTE-
      When used in this Act, unless the context otherwise requires, the
    terms "person", "vessel", "documented under the laws of the United
    States", and "citizen of the United States" shall have the meaning
    assigned to them by sections 801, 802, and 803 of this Appendix;
    and the term "alien" means any person not a citizen of the United
    States.

-SOURCE-
    (June 5, 1920, ch. 250, Sec. 37, 41 Stat. 1008; Pub. L. 86-327,
    Sec. 2, Sept. 21, 1959, 73 Stat. 597.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This Act, referred to in text, means act June 5, 1920, ch. 250,
    41 Stat. 988, as amended, known as the Merchant Marine Act, 1920,
    which (except for sections repealed or reenacted in Title 46,
    Shipping) is classified principally to this chapter. For complete
    classification of this Act to the Code, see section 889 of this
    Appendix and Tables.

-COD-
                               CODIFICATION                           
      The words "the term 'commission' means the United States Maritime
    Commission;" were omitted preceding the definition of "alien" in
    view of Reorg. Plan No. 21 of 1950, Secs. 204, 306, eff. May 24,
    1950, 15 F.R. 3178, 64 Stat. 1276, 1277, set out under section 1111
    of this Appendix, which abolished United States Maritime Commission
    and transferred its functions to Federal Maritime Board and to
    Secretary of Commerce.

-MISC1-
                                AMENDMENTS                            
      1959 - Pub. L. 86-327 substituted "sections 1 and 2 of the
    'Shipping Act, 1916,' as amended" for "sections 1 and 2 of the
    'Shipping Act, 1916,' as amended by this Act", which sections are
    referred to in the text as "sections 801, 802, and 803 of this
    Appendix" for purposes of codification.

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      "Commission", meaning United States Maritime Commission, and
    "United States Maritime Commission" substituted in text for "board"
    and "Shipping Board", meaning United States Shipping Board,
    respectively. For dissolution of Board and transfer of functions to
    United States Maritime Commission, see Ex. Ord. No. 6166 and act
    June 29, 1936. Ex. Ord. No. 6166 is set out as a note under section
    901 of Title 5, Government Organization and Employees. Executive
    and administrative functions of United States Maritime Commission
    transferred to Chairman thereof by Reorg. Plan No. 6 of 1949, eff.
    Aug. 20, 1949, 14 F.R. 5228, 63 Stat. 1069 set out under section
    1111 of this Appendix.

-End-

-CITE-
    46 USC APPENDIX Sec. 889                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 24 - MERCHANT MARINE ACT, 1920

-HEAD-
    Sec. 889. Short title

-STATUTE-
      This Act may be cited as the Merchant Marine Act, 1920.

-SOURCE-
    (June 5, 1920, ch. 250, Sec. 39, 41 Stat. 1008.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This Act, referred to in text, means act June 5, 1920, ch. 250,
    41 Stat. 988, as amended, known as the Merchant Marine Act, 1920,
    which (except for sections repealed or reenacted in Title 46,
    Shipping) is classified principally to this chapter. For complete
    classification of this Act to the Code, see Tables.

-End-

-CITE-
    46 USC APPENDIX CHAPTER 24A - MERCHANT MARINE
           ACT, 1928                                       01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 24A - MERCHANT MARINE ACT, 1928

-HEAD-
                  CHAPTER 24A - MERCHANT MARINE ACT, 1928              

-MISC1-
    Sec.                                                     
    891.        Declaration of policy.                                
    891b.       Vessels of Secretary; remodeling and improving.       
    891c.       Replacement vessels.                                  
    891u.       Definitions.                                          
    891v.       Reaffirmation of steamship line policy.               
    891w.       Ship operations; allocations.                         
    891x.       Short title.                                          

-End-

-CITE-
    46 USC APPENDIX Sec. 891                                    01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 24A - MERCHANT MARINE ACT, 1928

-HEAD-
    Sec. 891. Declaration of policy

-STATUTE-
      The policy and the primary purpose declared in section 861 of
    this Appendix are confirmed.

-SOURCE-
    (May 22, 1928, ch. 675, Sec. 1, 45 Stat. 689.)

-End-

-CITE-
    46 USC APPENDIX Sec. 891b                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 24A - MERCHANT MARINE ACT, 1928

-HEAD-
    Sec. 891b. Vessels of Secretary; remodeling and improving

-STATUTE-
      In addition to his power to recondition and repair vessels under
    section 871 of this Appendix, the Secretary of Transportation may
    remodel and improve vessels owned by the United States and in his
    possession or under his control, so as to equip them adequately for
    competition in the foreign trade of the United States. Any vessel
    so remodeled or improved shall be documented under the laws of the
    United States and shall remain documented under such laws for not
    less than five years from the date of the completion of the
    remodeling or improving and so long as there remains due the United
    States any money or interest on account of such vessel, and during
    such period it shall be operated only on voyages which are not
    exclusively coastwise.

-SOURCE-
    (May 22, 1928, ch. 675, Sec. 202, 45 Stat. 690; Ex. Ord. No. 6166,
    Sec. 12, eff. June 10, 1933; June 29, 1936, ch. 858, title II, Sec.
    204, title IX, Sec. 904, 49 Stat. 1987, 2016; Pub. L. 97-31, Sec.
    12(51), Aug. 6, 1981, 95 Stat. 157.)

-MISC1-
                                AMENDMENTS                            
      1981 - Pub. L. 97-31 substituted "Secretary of Transportation"
    for "Commission" and "his" for "its" in three places. For prior
    transfers of functions, see Transfer of Functions note below.

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      "United States Maritime Commission" substituted in text for
    "board", meaning United States Shipping Board. For dissolution of
    Board and transfer of functions to United States Maritime
    Commission, see Ex. Ord. No. 6166 and act June 29, 1936. Ex. Ord.
    No. 6166 is set out as a note under section 901 of Title 5,
    Government Organization and Employees. For subsequent transfers of
    functions, see Reorg. Plan No. 6 of 1949, Reorg. Plan No. 21 of
    1950, and Reorg. Plan No. 7 of 1961, set out under section 1111 of
    this Appendix.

-End-

-CITE-
    46 USC APPENDIX Sec. 891c                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 24A - MERCHANT MARINE ACT, 1928

-HEAD-
    Sec. 891c. Replacement vessels

-STATUTE-
      The necessity for the replacement of vessels owned by the United
    States and in the possession or under the control of the Secretary
    of Transportation and the construction for the Secretary of
    Transportation of additional up-to-date cargo, combination cargo
    and passenger, and passenger ships, to give the United States an
    adequate merchant marine, is recognized, and the Secretary of
    Transportation is authorized and directed to present to Congress
    from time to time, recommendations setting forth what new vessels
    are required for permanent operation under the United States flag
    in foreign trade, and the estimated cost thereof, to the end that
    Congress may, from time to time, make provision for replacements
    and additions. All vessels built for the Secretary of
    Transportation shall be built in the United States, and they shall
    be planned with reference to their possible usefulness as
    auxiliaries to the naval and military services of the United
    States.

-SOURCE-
    (May 22, 1928, ch. 675, Sec. 203, 45 Stat. 690; Ex. Ord. No. 6166,
    Sec. 12, eff. June 10, 1933; June 29, 1936, ch. 858, title II, Sec.
    204, title IX, Sec. 904, 49 Stat. 1987, 2016; Pub. L. 97-31, Sec.
    12(52), Aug. 6, 1981, 95 Stat. 157.)

-MISC1-
                                AMENDMENTS                            
      1981 - Pub. L. 97-31 substituted "Secretary of Transportation"
    for "Commission" in four places. For prior transfers of functions,
    see Transfer of Functions note below.

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      "Commission", meaning United States Maritime Commission,
    substituted in text for "board", meaning United States Shipping
    Board. For dissolution of Board and transfer of functions to United
    States Maritime Commission, see Ex. Ord. No. 6166 and act June 29,
    1936. Ex. Ord. No. 6166 is set out as a note under section 901 of
    Title 5, Government Organization and Employees. For subsequent
    transfers of functions, see Reorg. Plan No. 6 of 1949, Reorg. Plan
    No. 21 of 1950, and Reorg. Plan No. 7 of 1961, set out under
    section 1111 of this Appendix.

-End-

-CITE-
    46 USC APPENDIX Sec. 891u                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 24A - MERCHANT MARINE ACT, 1928

-HEAD-
    Sec. 891u. Definitions

-STATUTE-
      (a) When used in this Act, and for the purposes of this Act only,
    the words "foreign trade" mean trade between the United States, its
    Territories or possessions, or the District of Columbia and a
    foreign country: Provided, however, That the loading or the
    unloading of cargo, mail, or passengers at any port in any
    Territory or possession of the United States shall be construed to
    be foreign trade if the stop at such Territory or possession is an
    intermediate stop on what would otherwise be a voyage in foreign
    trade.
      (b) When used in this Act the term "citizen of the United States"
    includes a corporation, partnership, or association only if it is a
    citizen of the United States within the meaning of sections 802 and
    803 of this Appendix.

-SOURCE-
    (May 22, 1928, ch. 675, Sec. 703, 45 Stat. 698.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This Act, referred to in text, means act May 22, 1928, ch. 675,
    45 Stat. 689, as amended, known as the Merchant Marine Act, 1928,
    which is classified generally to this chapter. For complete
    classification of this Act to the Code, see References in Text note
    set out under section 891x of this Appendix and Tables.

-End-

-CITE-
    46 USC APPENDIX Sec. 891v                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 24A - MERCHANT MARINE ACT, 1928

-HEAD-
    Sec. 891v. Reaffirmation of steamship line policy

-STATUTE-
      The policy and the primary purpose declared in section 866 of
    this Appendix are reaffirmed.

-SOURCE-
    (May 22, 1928, ch. 675, Sec. 704, 45 Stat. 698.)

-End-

-CITE-
    46 USC APPENDIX Sec. 891w                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 24A - MERCHANT MARINE ACT, 1928

-HEAD-
    Sec. 891w. Ship operations; allocations

-STATUTE-
      In the allocations of the operations of the ships, the Secretary
    of Transportation shall distribute them as far as possible and
    without detriment to the service among the various ports of the
    country.

-SOURCE-
    (May 22, 1928, ch. 675, Sec. 705, 45 Stat. 698; Ex. Ord. No. 6166,
    Sec. 12, eff. June 10, 1933; June 29, 1936, ch. 858, title II, Sec.
    204, title IX, Sec. 904, 49 Stat. 1987, 2016; Pub. L. 97-31, Sec.
    12(53), Aug. 6, 1981, 95 Stat. 157.)

-MISC1-
                                AMENDMENTS                            
      1981 - Pub. L. 97-31 substituted "Secretary of Transportation"
    for "Maritime Commission". For prior transfers of functions, see
    Transfer of Functions note below.

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      "Maritime Commission", meaning United States Maritime Commission,
    substituted in text for "board", meaning United States Shipping
    Board. For dissolution of Board and transfer of functions to United
    States Maritime Commission, see Ex. Ord. No. 6166 and act June 29,
    1936. Ex. Ord. No. 6166 is set out as a note under section 901 of
    Title 5, Government Organization and Employees. For subsequent
    transfers of functions, see Reorg. Plan No. 6 of 1949, Reorg. Plan
    No. 21 of 1950, and Reorg. Plan No. 7 of 1961, set out under
    section 1111 of this Appendix.

-End-

-CITE-
    46 USC APPENDIX Sec. 891x                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 24A - MERCHANT MARINE ACT, 1928

-HEAD-
    Sec. 891x. Short title

-STATUTE-
      This Act may be cited as the "Merchant Marine Act, 1928".

-SOURCE-
    (May 22, 1928, ch. 675, Sec. 706, 45 Stat. 698.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This Act, referred to in text, means act May 22, 1928, ch. 675,
    45 Stat. 689, as amended, which enacted this chapter, and amended
    sections 866 and 869 of this Appendix, section 654 of former Title
    39, The Postal Service, and sections 870 and 880 of former Title
    46, Shipping. For complete classification of this Act to the Code,
    see Tables.

-End-

-CITE-
    46 USC APPENDIX CHAPTER 27 - MERCHANT MARINE
           ACT, 1936                                       01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936

-HEAD-

                  CHAPTER 27 - MERCHANT MARINE ACT, 1936              

-MISC1-
                   SUBCHAPTER I - DECLARATION OF POLICY               
    Sec.                                                     
    1101.       Fostering development and maintenance of merchant
                 marine.                                              

        SUBCHAPTER II - CREATION AND FUNCTIONS OF MARITIME AGENCIES    
    1111.       Powers and duties of agencies.                        
                  (a), (b) Repealed.                                  
                  (c)  Records of meetings; seal; rules and
                        regulations.                                  
                  (d)  Expenditures.                                  
                  (e)  Officers and employees.                        
                  (f)  Traveling and subsistence expenses; pay for
                        military officer on assignment.               
    1111a.      Administrative expenses; limitations.                 
    1112.       Operation of property by Secretary.                   
    1114.       Transfer of powers; rules and orders.                 
                  (a)  Transfer of functions, powers, and duties.     
                  (b)  Rules and regulations.                         
                  (c)  Enforcement of orders; penalties for
                        violations.                                   
    1115.       Discrimination at ports by carriers by water against
                 other carriers.                                      
    1116.       Construction fund.                                    
    1116a.      Application to obligations against emergency ship
                 construction fund.                                   
    1117.       Power to contract; audit of accounts; reports of
                 Comptroller General.                                 
    1118.       Reports to Congress.                                  
    1119.       Authorization of appropriations.                      
    1120.       Survey of existing merchant marine for creation of
                 adequate American-owned fleet.                       
    1121.       Investigations, studies, records, etc.                
                  (a)  Suitable ocean routes and lines to foreign
                        ports; vessels and costs of operation.        
                  (b)  Bulk cargo carrying services.                  
                  (c)  Vessels required in proposed routes.           
                  (d)  Cost of construction in United States and
                        abroad.                                       
                  (e)  Relative cost of operation under laws of United
                        States and foreign countries.                 
                  (f)  Foreign subsidies.                             
                  (g)  Shipyards.                                     
                  (h)  Laws applicable to aircraft.                   
                  (i)  Transportation to foreign ports of cotton,
                        coal, lumber, and cement.                     
                  (j)  New designs of vessels; intercoastal and inland
                        water transportation.                         
    1121-1.     Priority loading for vessels engaged in coastwise
                 transportation of coal; exception, report to
                 Congress.                                            
    1121-2.     National Maritime Enhancement Institutes.             
                  (a)  Designation by Secretary of Transportation.    
                  (b)  Activities.                                    
                  (c)  Submission of applications.                    
                  (d)  Designation criteria.                          
                  (e)  Awards.                                        
                  (f)  University transportation research funds.      
    1122.       Maritime problems; cooperation with others; cargo
                 carriage; recommendations.                           
                  (a)  Study of maritime problems.                    
                  (b)  Inducing preferences for American vessels;
                        construction of super-liners.                 
                  (c)  Collaboration with owners and builders.        
                  (d)  Liaison with other agencies and trade
                        organizations.                                
                  (e)  Repealed.                                      
                  (f)  Development and implementation of new methods
                        of cargo carriage; preferences for cargo
                        containers.                                   
                  (g)  Recommendations for further legislation.       
    1122a.      Vessel utilization and performance reports; filing;
                 civil penalty; lien upon vessel; remission or
                 mitigation of penalty.                               
    1122b.      Mobile trade fairs.                                   
                  (a)  Use of United States flag vessels and aircraft
                        insofar as practicable.                       
                  (b)  Technical and financial assistance; exceptions.
                  (c)  Use of foreign currencies.                     
    1123.       Obsolete tonnage; tramp service.                      
    1124.       Witnesses.                                            
                  (a)  Summoning; oaths; production of books and
                        papers; fees.                                 
                  (b)  Refusal to obey subpena; court orders;
                        contempt.                                     
    1125.       Acquisition of vessels.                               
    1125a.      Construction, repair, etc., of vessels for Government
                 agencies.                                            
    1126-1.     Training of future naval officers under Naval Reserve
                 Officer Training Corps programs at merchant marine
                 academies for promotion of maximum integration of
                 naval and merchant marine seapower of Nation.        

                     SUBCHAPTER III - AMERICAN SEAMEN                 
    1131.       Manning and wage scales; subsidy contracts.           
                  (a)  Investigation of wages and working conditions;
                        establishment of wage and manning scales;
                        incorporation in subsidy contracts.           
                  (b)  Subsidy contracts; provisions relative to
                        officers and crew.                            
    1132.       Reemployment rights for certain merchant seamen.      
                  (a)  In general.                                    
                  (b)  Time for application.                          
                  (c)  Certification determination.                   
                  (d)  Equivalence to Military Selective Service Act
                        certificate.                                  

             SUBCHAPTER V - CONSTRUCTION-DIFFERENTIAL SUBSIDY         
    1151.       Subsidy authorized for vessels to be operated in
                 foreign trade.                                       
                  (a)  Application for subsidy for construction;
                        conditions precedent to granting.             
                  (b)  Submission of plans to Navy Department;
                        certification of approval.                    
                  (c)  Application for subsidy for reconstruction or
                        reconditioning; conditions precedent to
                        granting; contracts.                          
    1152.       Construction of vessels; bids; subsidies.             
                  (a)  Approval of bids; contract with bidder;
                        acceptance of negotiated price; shipyard
                        records, availability; contract with applicant
                        or qualified citizen for purchase of vessel.  
                  (b)  Basis for fixing subsidy; cost of construction
                        in foreign yards; annual recomputation and
                        publication of foreign cost; limitation on
                        construction differential; report on American
                        shipbuilding industry.                        
                  (c)  Terms of sale of vessel to purchaser.          
                  (d)  Repealed.                                      
                  (e)  Construction in navy yards; sales to citizens;
                        terms.                                        
                  (f)  Survey of shipbuilding capability; correction
                        of inadequacies; reimbursement of certain
                        vessel construction and delivery expenses.    
                  (g)  Sale of vessels acquired by Secretary.         
                  (h)  Installation or removal of national defense
                        features; title to such features.             
                  (i)  Plans, specifications, and proposals for
                        national defense features; certification of
                        approval.                                     
    1153.       Documentation of completed vessel under laws of United
                 States; delivery to purchaser; first mortgage to
                 secure deferred payments.                            
    1154.       Purchase of vessel constructed in accordance with
                 application for subsidy; bid or negotiated price
                 basis for subsidy and payments for cost of national
                 defense features; documentation.                     
    1155.       Eligible shipyards; materials; conditions of
                 contracts; limitation to American shipyards; American
                 materials, waiver; ability of bidders; filing bids
                 and data.                                            
    1156.       Operation of subsidy constructed vessel limited to
                 foreign trade; repayments to Secretary for
                 deviations.                                          
    1157.       Construction of new vessel to replace obsolete;
                 purchase of old vessel by Secretary; bond of seller
                 against liens.                                       
    1158.       Disposition of vessels transferred to Maritime
                 Administration of Department of Transportation.      
                  (a)  Authority to scrap or sell obsolete vessels.   
                  (b)  Authority to convey vessels.                   
    1159.       Vessels to be operated in domestic trade; terms and
                 conditions of construction aid and sale to purchaser.
    1160.       Acquisition of obsolete vessels.                      
                  (a)  Definitions.                                   
                  (b)  Promotion of construction of new vessels;
                        allowance on obsolete vessels.                
                  (c)  Utility value of new vessel; gross tonnage.    
                  (d)  Amount of allowance on obsolete vessel;
                        determination of amount.                      
                  (e)  Recognition of gain for income tax purposes;
                        basis for gain or loss.                       
                  (f)  Report to Congress.                            
                  (g)  Use of vessels 25 years old or more.           
                  (h)  Repealed.                                      
                  (i)  Exchange of vessels; valuation; scrapping of
                        traded out vessels.                           
                  (j)  Placement in national defense reserve fleet of
                        acquired vessels.                             
    1161.       Reserve funds for construction or acquisition of
                 vessels; taxation.                                   
                  (a)  "New vessel" defined.                          
                  (b)  Establishment of construction reserve funds.   
                  (c)  Recognition of gain for taxation where proceeds
                        of sale or indemnity for loss deposited in
                        fund.                                         
                  (d)  Basis for determining gain or loss and for
                        depreciation of new vessels.                  
                  (e)  Order, proportions, etc., of deposits and
                        withdrawals.                                  
                  (f)  Amounts in fund as accumulation of earnings or
                        profits.                                      
                  (g)  Benefits of section conditioned upon manner and
                        time of expenditure of deposits.              
                  (h)  Authorizations of extensions of time.          
                  (i)  Taxation of deposits upon failure of
                        conditions.                                   
                  (j)  Assessment and collection of deficiency tax.   
                  (k)  Taxable years governed by section.             
                  (l)  Vessels deemed constructed or acquired by
                        taxpayers owning stock in corporations
                        constructing or acquiring vessels.            
                  (m)  Definitions.                                   
                  (n)  "Contract for the construction" and
                        "construction contract" defined.              
                  (o)  "Reconstruction and reconditioning" defined.   
    1162.       Limitation on restrictions.                           

           SUBCHAPTER VI - VESSEL OPERATING ASSISTANCE PROGRAMS       

              PART A - OPERATING-DIFFERENTIAL SUBSIDY PROGRAM          
    1171.       Subsidy authorized for operation of vessels in foreign
                 trade or in off-season cruises.                      
                  (a)  Application for subsidy; conditions precedent
                        to granting.                                  
                  (b)  Statements as to financial interests to
                        accompany application; penalty for false
                        statements.                                   
    1172.       Determination of necessity of subsidy to meet
                 competition.                                         
    1173.       Contracts for payment of subsidy.                     
                  (a)  Authorization of contracts.                    
                  (b)  Amount of subsidy.                             
                  (c)  "Collective bargaining costs", "base period
                        costs", "base period", and "subsidizable wage
                        costs of United States officers and crews"
                        defined; determination of collective
                        bargaining costs and establishment of new base
                        periods; wage change index.                   
                  (d)  Foreign wage computation; foreign manning.     
                  (e)  Monthly payment of wage subsidy; procedures for
                        calculation and payment of subsidy on certain
                        expenses.                                     
                  (f)  Monthly percentage payment of other than wage
                        subsidy; security for refund of overpayments;
                        payment of remainder after audit of voyage
                        accounts.                                     
    1174.       Additional subsidy; when authorized.                  
    1175.       Vessels excluded from subsidy.                        
                  (a)  Vessels engaged in coastwise or intercoastal
                        trade; vessels on inland waterways.           
                  (b)  Vessels more than 25 years old.                
                  (c)  Vessels to be operated in an essential service
                        served by citizens of United States.          
    1176.       Readjustments; change in service; withdrawal from
                 service; payment of excess profits; wages, etc.;
                 American materials.                                  
    1177.       Capital construction fund.                            
                  (a)  Agreement rules; persons eligible; replacement,
                        additional, or reconstructed vessels for
                        prescribed trade and fishery operations;
                        amount of deposits, annual limitation;
                        conditions and requirements for deposits and
                        withdrawals.                                  
                  (b)  Ceiling on deposits; lessees; "agreement
                        vessel" defined.                              
                  (c)  Investment requirements; depositories;
                        fiduciary requirements; interest-bearing
                        securities; stock: percentage for domestic
                        issues, listing and registration, prudent
                        acquisitions, value and percentage
                        equilibrium, and treatment of preferred
                        issues.                                       
                  (d)  Nontaxability of deposits; eligible deposits.  
                  (e)  Accounts within fund: capital account, capital
                        gain account, and ordinary income account;
                        limitation on capital losses.                 
                  (f)  Purposes of qualified withdrawals; nonqualified
                        withdrawal treatment for nonfulfillment of
                        substantial obligations.                      
                  (g)  Tax treatment of qualified withdrawals; basis:
                        reduction.                                    
                  (h)  Tax treatment of nonqualified withdrawals; FIFO
                        and LIFO bases; interest rate; amounts not
                        withdrawn after 25 years; highest marginal
                        rate of tax.                                  
                  (i)  Corporate reorganizations and partnership
                        changes.                                      
                  (j)  Treatment of existing funds; relation of old to
                        new fund.                                     
                  (k)  Definitions.                                   
                  (l)  Records; reports; rules and regulations;
                        termination of agreement upon changes in
                        regulations with substantial effect on rights
                        or obligations.                               
                  (m)  Departmental reports and certification.        
    1177-1.     Small fishing vessel construction reserves.           
    1177a.      Deposits in special reserve fund; excusal; tax
                 treatment.                                           
    1178.       Sale or assignment of contract; consent of Secretary;
                 purchaser subject to terms of contract; rescinding
                 contract on transfer without consent.                
    1179.       Withholding payment to defaulting contractor.         
    1180.       Vessels eligible to subsidy.                          
    1181.       Transfer of vessels to foreign registry on default of
                 United States.                                       
                  (a)  Application; hearing; grant or denial.         
                  (b)  Appeal from denial of application.             
                  (c)  Effectiveness of transfer.                     
    1183.       Off-season cruises by passenger vessels.              
                  (a)  "Passenger vessel" defined.                    
                  (b)  Authorization for payment of subsidy.          
                  (c)  Authorization for payment of subsidy to
                        passenger vessels providing domestic service. 
                  (d)  Conditions for cruises or domestic service
                        while on voyages in an essential service in
                        foreign commerce.                             
                  (e)  Application for approval of cruise; notice to
                        other American flag operators.                
    1183a.      Off-season cruises additional to right of operator to
                 make voyages on regular service, route, or line,
                 including approved deviations.                       
    1184.       Suspension of operating differential subsidy contracts
                 by operator recipients.                              
    1185.       Construction, reconstruction, or acquisition of
                 vessels over five thousand deadweight tons in foreign
                 shipyards; preconditions.                            
    1185a.      Wind-up of program.                                   
                  (a)  In general.                                    
                  (b)  Existing subsidy contracts.                    
                  (c)  Essential service and port equity requirements.
                  (d)  Transfer and registration of vessel.           

                 PART B - MARITIME SECURITY FLEET PROGRAM             
    1187 to 1187e. Repealed.                                          

                SUBCHAPTER VII - PRIVATE CHARTER OPERATION            
    1191.       Additional powers of Secretary for completion of
                 program.                                             
    1192.       Construction or reconditioning of vessels by
                 Secretary.                                           
    1193.       Competitive bidding.                                  
                  (a)  Construction, reconstruction, or reconditioning
                        of vessels.                                   
                  (b)  Requirements.                                  
                  (c)  Opening of bids.                               
    1194.       Charter or sale of vessels acquired by Department of
                 Transportation.                                      
    1195.       Employment of vessels on foreign trade routes;
                 selection of routes; encouraging private operation by
                 sale or charter; selling price.                      
    1196.       Advertising for bids for charters; rejection of bids. 
    1197.       Awarding charter on bids.                             
                  (a)  Highest bid.                                   
                  (b)  Rejection of highest bid.                      
                  (c)  Next highest bid; rejection of all bids and
                        readvertisement.                              
    1198.       Payment of subsidies to charterers.                   
    1199.       Excess profit; payment to Secretary; formula for
                 determining profit.                                  
    1200.       Undertaking required of charterer.                    
    1201.       Terms and conditions of charters.                     
    1202.       Insurance requirements; repairs; inspection by
                 Secretary; termination of charter in national
                 emergency.                                           
    1203.       Financial resources and other factors considered in
                 awarding charters.                                   
    1204.       Construction and chartering of vessels for
                 unsuccessful routes; purchase of vessel by charterer;
                 purchase price; operation of vessel in foreign trade.
    1205.       Experimental operation and testing of United States
                 vessels; number; bareboat charters; review of
                 charters and agency agreements; provisions applicable
                 to charters and agreements.                          

                   SUBCHAPTER VIII - CONTRACT PROVISIONS               
    1211.       Provision for books and records; filing balance
                 sheets; inspection and auditing by Secretary;
                 rescission of contract on failure to comply with
                 provisions.                                          
    1212.       Purchase or requisition of vessels by United States;
                 amount of payment.                                   
    1213.       Contracts designed equitably for all ports; minimum
                 allocation of funds; report to Congress; preference
                 to citizens of United States; regional offices for
                 Maritime Administration.                             

                SUBCHAPTER VIII-A - OFFENSES AND PENALTIES            
    1222.       Repealed.                                             
    1223.       Forbidden practices relating to coastwise service,
                 salaries, officers, and employees.                   
                  (a)  Foreign trade subsidy contractor engaging in
                        coastwise or intercoastal trade.              
                  (b)  Contractor in default paying more than
                        specified salary.                             
                  (c)  Repealed.                                      
                  (d)  Employing other persons or concerns as managing
                        or operating agent.                           
                  (e)  Repealed.                                      
                  (f)  Penalty.                                       
    1226.       Discrimination in respect to cargo.                   
    1227.       Agreements with other carriers forbidden; withholding
                 subsidies; actions by injured persons for damages.   
    1228.       Fines and penalties; conviction as rendering persons
                 ineligible to receive benefits of law.               

                 SUBCHAPTER IX - MISCELLANEOUS PROVISIONS             
    1241.       Transportation in American vessels of Government
                 personnel and certain cargoes.                       
                  (a)  Requirement that officers and employees travel
                        on American ships.                            
                  (b)  Cargoes procured, furnished or financed by
                        United States; waiver in emergencies;
                        exceptions; definition.                       
                  (c)  Motor vehicle owned by Government personnel.   
    1241-1.     Shipment of exports financed by Government in United
                 States vessels.                                      
    1241a.      Vessel operations revolving fund; establishment; uses;
                 limitation.                                          
    1241b.      Availability of vessel operations revolving fund;
                 vessels involved in mortgage-foreclosure or
                 forfeiture proceedings; redelivery and layup of
                 chartered ships; custody and husbanding of
                 Government-owned ships.                              
    1241c.      Expenses for activation, repair and deactivation of
                 merchant ships; receipts.                            
    1241d.      Findings and declarations with respect to export
                 transportation of agricultural commodities.          
    1241e.      Exemption of certain agricultural exports from
                 requirements of cargo preference laws.               
    1241f.      Shipment requirements for certain exports sponsored by
                 Department of Agriculture.                           
                  (a)  Minimum requirement respecting gross tonnage
                        transported in United States-flag commercial
                        vessels; implementation.                      
                  (b)  Covered export activity.                       
                  (c)  Terms and conditions.                          
                  (d)  "Export activity" defined.                     
                  (e)  Prevailing world market price.                 
    1241g.      Minimum tonnage.                                      
    1241h.      Financing of shipment of agricultural commodities in
                 United States-flag vessels.                          
                  (a)  Financing by Secretary of Transportation of
                        increased ocean freight charges.              
                  (b)  Reimbursement of Secretary of Agriculture and
                        Commodity Credit Corporation; computations.   
                  (c)  Issuance, etc., of obligations for financing.  
                  (d)  Authorization of appropriations.               
                  (e)  Notification of Congress respecting failure to
                        obtain funds necessary for financing.         
    1241i.      Authorization of appropriations.                      
    1241j.      Termination of sections 1241e through 1241o of this
                 Appendix.                                            
    1241k.      National Advisory Commission on Agricultural Export
                 Transportation Policy.                               
                  (a)  Establishment.                                 
                  (b)  Membership; composition, appointment, etc.     
                  (c)  Chairman; vacancy.                             
    1241l.      Duties of Commission.                                 
                  (a)  Study and review of ocean transportation of
                        agricultural exports subject to cargo
                        preference laws; recommendations, scope, etc. 
                  (b)  Reporting requirements; termination of
                        Commission.                                   
                  (c)  Contents of reports.                           
    1241m.      Information and assistance to be furnished to
                 Commission.                                          
    1241n.      Compensation and travel and subsistence expenses of
                 Commission members.                                  
    1241o.      Definition of United States-flag vessel eligible to
                 carry cargoes under sections 1241f through 1241h of
                 this Appendix.                                       
    1241p.      Effect on other laws.                                 
    1241q.      Exemption of American Great Lakes vessels from
                 restriction on carriage of preference cargoes.       
                  (a)  Exemption from restriction.                    
                  (b)  Restriction described.                         
                  (c)  Subsequent application of restriction.         
    1241r.      Designation of American Great Lakes vessels.          
                  (a)  In general.                                    
                  (b)  Construction and purchase agreement.           
                  (c)  Certain foreign registry and sale not
                        prohibited.                                   
                  (d)  Issuance of regulations.                       
    1241s.      Restrictions on operations of American Great Lakes
                 vessels.                                             
                  (a)  In general.                                    
                  (b)  Off-season carriage exception.                 
    1241t.      Revocation and termination of designation.            
                  (a)  Revocation.                                    
                  (b)  Civil penalty.                                 
                  (c)  Termination of designation.                    
    1241u.      Study and report.                                     
                  (a)  Study.                                         
                  (b)  Report.                                        
    1241v.      Definitions.                                          
    1242.       Requisition or purchase of vessels in time of
                 emergency.                                           
                  (a)  Compensation; restoration; consequential
                        damages.                                      
                  (b)  Determination of value of vessel.              
                  (c)  Charter of vessels; compensation; reimbursement
                        for loss or damage.                           
                  (d)  Determination of amount of compensation.       
                  (e)  Use of vessels by Secretary; transfer to other
                        departments or agencies; reimbursement of
                        Secretary.                                    
    1242a.      Maintenance of and adjustment of obligations with
                 respect to essential vessels affected by Neutrality
                 Act.                                                 
                  (a)  "Essential vessel" defined.                    
                  (b)  Adjustment of obligations and arrangements for
                        maintenance of essential vessels.             
                  (c)  Provisions included within adjustments and
                        arrangements.                                 
                  (d)  Readjustment or modification of adjustments and
                        arrangements.                                 
                  (e)  Expenses incurred in adjustments and
                        arrangements.                                 
    1244.       Definitions.                                          
    1245.       Separability; short title of chapter.                 
    1247.       Appointment of Secretary as trustee or receiver;
                 operation of vessels under court orders; payment of
                 operating costs; claims against corporation.         
    1248.       Enrollment in a sealift readiness program.            
    1249.       Assistance for small shipyards and maritime
                 communities.                                         
                  (a)  Establishment of program.                      
                  (b)  Awards.                                        
                  (c)  Use of funds.                                  
                  (d)  Prohibited uses.                               
                  (e)  Matching requirements.                         
                  (f)  Application.                                   
                  (g)  Audits and examinations.                       
                  (h)  Small shipyard defined.                        
                  (i)  Authorization of appropriations.               

              SUBCHAPTER XI - FEDERAL SHIP MORTGAGE INSURANCE          
    1271.       Definitions.                                          
    1272.       Federal Ship Financing Fund.                          
    1273.       Authorization of Secretary or Administrator to
                 guarantee obligations.                               
                  (a)  Principal and interest.                        
                  (b)  Security interest.                             
                  (c)  Amount of guarantee; percentage limitation;
                        determination of actual cost of vessel.       
                  (d)  Pledge of United States.                       
                  (e)  Proof of obligations.                          
                  (f)  Limitation on outstanding amount.              
                  (g)  Restrictions on commitments to guarantee
                        obligations on eligible export vessels.       
                  (h)  Risk categories.                               
                  (i)  Priority for national defense tank vessels.    
                  (j)  Priority for other vessels suitable for service
                        as a naval auxiliary.                         
    1273a.      Certain loan guarantees and commitments.              
    1274.       Eligibility for guarantee.                            
                  (a)  Purpose of obligations.                        
                  (b)  Contents of obligations.                       
                  (c)  Security.                                      
                  (d)  Restrictions.                                  
                  (e)  Guarantee fees.                                
                  (f)  Investigation of applications.                 
                  (g)  Disposition of moneys.                         
                  (h)  Additional requirements.                       
                  (i)  Limitation on authority to establish uniform
                        percentage limitations.                       
                  (j)  Guarantees for eligible export vessels.        
                  (k)  Monitoring.                                    
                  (l)  Review of applications.                        
                  (m)  Agreement with obligor.                        
                  (n)  Decision period.                               
    1274a.      Authorization of Secretary or Administrator to
                 guarantee obligations arising from statutorily
                 mandated change in standards for operation of
                 vessels.                                             
                  (a)  Purpose of obligations; principal and interest.
                  (b)  Limitations on length and amount of guaranteed
                        obligations; useful life of vessel.           
                  (c)  Security against default; fees; Vessel
                        Replacement Guarantee Fund.                   
                  (d)  Additional requirements.                       
    1275.       Defaults.                                             
                  (a)  Rights of obligee.                             
                  (b)  Notice of default.                             
                  (c)  Secretary or Administrator to complete, sell or
                        operate property.                             
                  (d)  Cash payments; issuance of notes or
                        obligations.                                  
                  (e)  Actions against obligor.                       
                  (f)  Default response.                              
    1279a.      Escrow fund.                                          
                  (a)  Creation.                                      
                  (b)  Disbursement prior to termination of escrow
                        agreement.                                    
                  (c)  Disbursement upon termination of escrow
                        agreement.                                    
                  (d)  Investment of fund.                            
                  (e)  Payment of income.                             
                  (f)  Terms of escrow agreement.                     
                  (g)  Payments required before disbursement.         
    1279b.      Deposit fund.                                         
                  (a)  Establishment of deposit fund.                 
                  (b)  Agreement.                                     
                  (c)  Investment.                                    
                  (d)  Withdrawals.                                   
    1279c.      Ocean thermal energy conversion demonstration
                 facilities and plantships.                           
                  (a)  Financing of construction, reconstruction, or
                        reconditioning.                               
                  (b)  Certification of reasonableness of risk.       
                  (c)  OTEC Demonstration Fund.                       
                  (d)  Notes and obligations.                         
                  (e)  Taxability of interest.                        
    1279d.      Loan guarantees for eligible export vessels.          
                  (a)  Authority to guarantee obligations for eligible
                        export vessels.                               
                  (b)  Interagency council.                           
    1279e.      Loan guarantees for shipyard modernization and
                 improvement.                                         
                  (a)  General authority.                             
                  (b)  Applicable laws, requirements, regulations, and
                        procedures.                                   
                  (c)  Transfer of funds.                             
                  (d)  Definitions.                                   
    1279f.      Fisheries financing and capacity reduction.           
                  (a)  Authorization for guarantees; issuance of
                        obligations.                                  
                  (b)  Requirements for guaranteed obligations.       
                  (c)  Fishing capacity reduction fund; establishment;
                        availability of amounts; deposit or
                        investment.                                   
                  (d)  Issuance of regulations.                       
                  (e)  "Program" defined.                             
    1279g.      Direct loan obligations for fisheries financing and
                 capacity reduction.                                  
    1280.       Advances to fund.                                     
    1280a.      Eligible shipyards.                                   
    1280b.      Annual report on program.                             

                    SUBCHAPTER XII - WAR RISK INSURANCE                
    1281.       Definitions.                                          
    1282.       Authority to provide insurance; consideration of risk.
                  (a)  Authorization, approval, and consultation;
                        criteria.                                     
                  (b)  Consideration of risk.                         
                  (c)  Condition of availability in time of war or
                        national emergency.                           
    1283.       Persons, property, and interests insurable.           
    1284.       Risks other than war risks.                           
    1285.       Insurance of property of Government departments and
                 agencies.                                            
    1286.       Liability insurance for persons performing services or
                 providing facilities for vessels.                    
    1287.       Reinsurance; rates; allowances to insurance carriers. 
    1288.       Insurance fund; investments; appropriations.          
    1288a.      Transfer of funds from Vessel Operations Revolving
                 Fund.                                                
    1289.       Administrative provisions.                            
                  (a)  Issuance of policies, rules, and regulations;
                        settlement of claims; valuation; rejection and
                        review of valuation.                          
                  (b)  Forms and policies; rates; fees.               
                  (c)  Commercial practice controlling; limitation on
                        fees.                                         
                  (d)  Underwriting agents.                           
                  (e)  Employment of marine insurance experts.        
                  (f)  Utilization of services of other Government
                        agencies.                                     
    1290.       Seamen's rights unaffected.                           
    1291.       Reports to Congress.                                  
    1292.       Actions on claims for losses; jurisdiction of courts;
                 limitation of actions.                               
    1293.       Additional insurance with other underwriters.         
    1294.       Expiration of authority to provide insurance.         

             SUBCHAPTER XIII - MARITIME EDUCATION AND TRAINING         
    1295.       Congressional declaration of policy.                  
    1295a.      Definitions.                                          
    1295b.      Maintenance of Academy.                               
                  (a)  Duty of Secretary.                             
                  (b)  Nomination and appointment of cadets;
                        designation and licensing of individuals from
                        Trust Territory of Pacific Islands, Western
                        Hemisphere nations and nations other than
                        United States.                                
                  (c)  Appointment of cadet as midshipman in United
                        States Navy Reserve; rights and privileges.   
                  (d)  Uniforms, textbooks, and transportation
                        allowances.                                   
                  (e)  Commitment agreements.                         
                  (f)  Places of training.                            
                  (g)  Degrees awarded.                               
                  (h)  Board of Visitors.                             
                  (i)  Advisory Board.                                
                  (j)  Limitation on charges and fees for attendance. 
    1295c.      State maritime academies.                             
                  (a)  Cooperation and assistance.                    
                  (b)  Regional maritime academies.                   
                  (c)  Training vessels.                              
                  (d)  Annual payments.                               
                  (e)  Detailing of personnel.                        
                  (f)  Conditions to receiving payments or use of
                        vessels.                                      
                  (g)  Student incentive payment agreements.          
                  (h)  Appointment of cadet as midshipman in United
                        States Navy Reserve.                          
    1295c-1.    Plan for sharing training vessels.                    
    1295d.      Additional training.                                  
                  (a)  In general.                                    
                  (b)  Equipment or supplies required for training.   
                  (c)  Oil pollution prevention, response, and
                        clean-up program.                             
    1295e.      United States Maritime Service.                       
                  (a)  Establishment and maintenance.                 
                  (b)  Enrollment; compensation; course of study and
                        periods of training; uniforms.                
                  (c)  Ranks, grades, and ratings same as for United
                        States Coast Guard.                           
                  (d)  Awards and medals.                             
    1295f.      Civilian nautical school.                             
                  (a)  "Civilian nautical school" defined.            
                  (b)  Examination and inspection of school; rating
                        and certification.                            
                  (c)  Repealed.                                      
                  (d)  Fines and penalties.                           
    1295g.      Powers and duties of Secretary.                       
                  (a)  Rules and regulations.                         
                  (b)  Excess vessels and equipment.                  
                  (c)  Securing of information, facilities, or
                        equipment; detailing of personnel.            
                  (d)  Employment of personnel.                       

-End-

-CITE-
    46 USC APPENDIX SUBCHAPTER I - DECLARATION OF
           POLICY                                          01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER I - DECLARATION OF POLICY

-HEAD-
                   SUBCHAPTER I - DECLARATION OF POLICY               

-End-

-CITE-
    46 USC APPENDIX Sec. 1101                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER I - DECLARATION OF POLICY

-HEAD-
    Sec. 1101. Fostering development and maintenance of merchant marine

-STATUTE-
      It is necessary for the national defense and development of its
    foreign and domestic commerce that the United States shall have a
    merchant marine (a) sufficient to carry its domestic water-borne
    commerce and a substantial portion of the water-borne export and
    import foreign commerce of the United States and to provide
    shipping service essential for maintaining the flow of such
    domestic and foreign waterborne commerce at all times, (b) capable
    of serving as a naval and military auxiliary in time of war or
    national emergency, (c) owned and operated under the United States
    flag by citizens of the United States, insofar as may be
    practicable, (d) composed of the best-equipped, safest, and most
    suitable types of vessels, constructed in the United States and
    manned with a trained and efficient citizen personnel, and (e)
    supplemented by efficient facilities for shipbuilding and ship
    repair. It is declared to be the policy of the United States to
    foster the development and encourage the maintenance of such a
    merchant marine.

-SOURCE-
    (June 29, 1936, ch. 858, title I, Sec. 101, 49 Stat. 1985; Pub. L.
    91-469, Sec. 1, Oct. 21, 1970, 84 Stat. 1018.)

-MISC1-
                                AMENDMENTS                            
      1970 - Pub. L. 91-469 struck out "on all routes" after "shipping
    service" in cl. (a) and inserted cl. (e).

-End-

-CITE-
    46 USC APPENDIX SUBCHAPTER II - CREATION AND
           FUNCTIONS OF MARITIME AGENCIES                  01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER II - CREATION AND FUNCTIONS OF MARITIME AGENCIES

-HEAD-
        SUBCHAPTER II - CREATION AND FUNCTIONS OF MARITIME AGENCIES    

-End-

-CITE-
    46 USC APPENDIX Sec. 1111                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER II - CREATION AND FUNCTIONS OF MARITIME AGENCIES

-HEAD-
    Sec. 1111. Powers and duties of agencies

-STATUTE-
    (a) Repealed. Pub. L. 97-31, Sec. 12(58)(A), Aug. 6, 1981, 95 Stat.
      158
    (b) Repealed. Pub. L. 101-225, title III, Sec. 307(7), Dec. 12,
      1989, 103 Stat. 1925
    (c) Records of meetings; seal; rules and regulations
      The Commission shall, through its secretary, keep a true record
    of all its meetings and the yea-and-nay votes taken therein, on
    every action, order, contract, or financial transaction approved or
    disapproved by the Commission. It shall have an official seal which
    shall be judicially noticed, and shall adopt rules and regulations
    in regard to its procedure and the conduct of its business.
    (d) Expenditures
      The Commission and the Secretary of Transportation may make such
    expenditures as are necessary in the performance of their functions
    from funds made available to them by this chapter or appropriated
    after June 29, 1936, which further appropriations are authorized.
    (e) Officers and employees
      The Commission and the Secretary of Transportation may appoint
    and prescribe the duties and fix the salaries of a secretary, a
    director for each of not to exceed five divisions, a general
    counsel, a clerk to each member of the Commission and not more than
    three assistants, a clerk to the general counsel, not more than a
    total of twenty naval architects or marine engineers, twenty
    special experts, twenty-two examiners, twelve attorneys, and two
    inspectors for each vessel at each shipyard at which vessels are
    being constructed by it or under its supervision. The Commission
    and the Secretary of Transportation may, subject to the provisions
    of the civil-service laws and chapter 51 and subchapter III of
    chapter 53 of title 5, appoint such other officers, engineers,
    inspectors, attorneys, examiners, and other employees as are
    necessary in the execution of their functions.
    (f) Traveling and subsistence expenses; pay for military officer on
      assignment
      Each member, any employee of the Commission or the Secretary of
    Transportation, and any person detailed to it or the Secretary of
    Transportation from any other agency of the Government shall
    receive necessary traveling and subsistence expenses, or per diem
    allowance in lieu thereof, within the limitations prescribed by
    law, while away from his official station upon official business of
    the Commission or the Secretary of Transportation. Whenever any
    officer (not exceeding five in number at any time) of the Army,
    Navy, Marine Corps, or Coast Guard is detailed to the Commission or
    the Secretary of Transportation, he shall receive from the
    Commission or the Secretary of Transportation, for the period
    during which he is so detailed, such compensation as added to his
    pay and allowances as an officer in such service will make his
    aggregate compensation equal to the pay and allowances he would
    receive if he were the incumbent of an office or position in such
    service (or in the corresponding executive department), which, in
    the opinion of the Commission or the Secretary of Transportation,
    involves the performance of work similar in importance, difficulty,
    and responsibility to that performed by him while detailed to the
    Commission or the Secretary of Transportation. Expenditures by the
    Commission or the Secretary of Transportation shall be allowed and
    paid on the presentation of itemized vouchers therefor approved by
    the Commission or the Secretary of Transportation or a designated
    employee thereof.

-SOURCE-
    (June 29, 1936, ch. 858, title II, Sec. 201, 49 Stat. 1985; Aug. 4,
    1939, ch. 417, Secs. 3, 4, 53 Stat. 1182; Oct. 28, 1949, ch. 782,
    title XI, Sec. 1106(a), 63 Stat. 972; Pub. L. 85-507, Sec.
    21(b)(4), July 7, 1958, 72 Stat. 337; Pub. L. 91-469, Sec. 36, Oct.
    21, 1970, 84 Stat. 1036; Pub. L. 97-31, Sec. 12(58), Aug. 6, 1981,
    95 Stat. 158; Pub. L. 101-225, title III, Sec. 307(7), Dec. 12,
    1989, 103 Stat. 1925.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The civil service laws, referred to in subsec. (e), are set out
    in Title 5, Government Organization and Employees. See,
    particularly, section 3301 et seq. of Title 5.

-COD-
                               CODIFICATION                           
      Provisions of the first sentence of subsec. (e) that authorized
    the appointment and fixing of the salaries of a secretary, etc.,
    "without regard to the civil-service laws or the Classification Act
    of 1923, as amended", and provisions that prohibited such employees
    from receiving an annual salary at a rate in excess of that
    provided under the Classification Act of 1923, as amended, were
    omitted as obsolete and superseded.
      Such appointments are now subject to the civil service laws
    unless specifically excepted by such laws or by laws enacted
    subsequent to Executive Order 8743, Apr. 23, 1941, issued by the
    President pursuant to the act of Nov. 26, 1940, ch. 919, title I,
    Sec. 1, 54 Stat. 1211, which covered most excepted positions into
    the classified (competitive) civil service. The Order is set out as
    a note under section 3301 of Title 5, Government Organization and
    Employees.
      As to the salaries of such personnel, sections 1202 and 1204 of
    the Classification Act of 1949, 63 Stat. 972, 973, repealed the
    Classification Act of 1923 and all other laws or parts of laws
    inconsistent with the 1949 Act. The Classification Act of 1949 was
    repealed by Pub. L. 89-554, Sept. 6, 1966, Sec. 8(a), 80 Stat. 632,
    and reenacted as chapter 51 and subchapter III of chapter 53 of
    Title 5. Section 5102 of Title 5 contains the applicability
    provisions of the 1949 Act, and section 5103 of Title 5 authorizes
    the Office of Personnel Management to determine the applicability
    to specific positions and employees.
      In the last sentence of subsec. (e), "chapter 51 and subchapter
    III of chapter 53 of title 5" substituted for "the Classification
    Act of 1949, as amended" on authority of Pub. L. 89-554, Sec. 7(b),
    Sept. 6, 1966, 80 Stat. 631, the first section of which enacted
    Title 5.

-MISC1-
                                AMENDMENTS                            
      1989 - Subsec. (b). Pub. L. 101-225 struck out subsec. (b) which
    read as follows: "No person shall hold office as a member of the
    Commission who, within three years prior to his appointment, shall
    have been employed by, or have had any pecuniary interest, in any
    carrier by water or substantial pecuniary interest in any other
    person who derives a substantial portion of his revenues from any
    business associated with ships or shipping. Each member shall
    devote his full time to the duties of his office. It shall be
    unlawful for any member, officer, or employee of the Federal
    Maritime Commission to be in the employ of any other person, firm,
    or corporation, or to have any pecuniary interest in, or hold any
    official relationship with, any carrier by water, shipbuilder,
    contractor, or other person, firm, association, or corporation with
    whom the Federal Maritime Commission may have business relations."
      Subsec. (g). Pub. L. 101-225 struck out subsec. (g) which
    provided that this section take effect June 29, 1936.
      1981 - Subsec. (a). Pub. L. 97-31, Sec. 12(58)(A), struck out
    subsec. (a) which related to establishment, etc., of the United
    States Maritime Commission. For prior transfers of functions, see
    Transfer of Functions note below.
      Subsec. (d). Pub. L. 97-31, Sec. 12(58)(B), substituted "their"
    for "its" and "them" for "it" and inserted reference to Secretary
    of Transportation.
      Subsec. (e). Pub. L. 97-31, Sec. 12(58)(C), substituted "their"
    for "it", inserted reference to Secretary of Transportation, and
    struck out proviso which related to the transfer of employees from
    the United States Shipping Board Bureau or United States Shipping
    Board Merchant Fleet Corporation to the United States Maritime
    Commission and to the Acquisition of United States Civil Service
    status.
      Subsec. (f). Pub. L. 97-31, Sec. 12(58)(D), inserted references
    to Secretary of Transportation.
      1970 - Subsec. (b). Pub. L. 91-469 substituted in last sentence
    "Federal Maritime Commission" for "Commission" in two places.
      1958 - Subsec. (e). Pub. L. 85-507 struck out provisions which
    authorized detail of certain personnel for training at institutions
    for scientific education and research.
      1949 - Subsec. (e). Act Oct. 28, 1949, substituted
    "Classification Act of 1949" for "Classification Act of 1923, as
    amended,".
      1939 - Subsec. (e). Act Aug. 4, 1939, Sec. 3, authorized the
    appointment of a clerk to the general counsel, increased the number
    of naval architects and special experts from 12 to 20 each, and the
    number of examiners from 12 to 22, and permitted not more than 5
    members to be detailed annually for engineering, technical, or
    other scientific education and training.
      Subsec. (f). Act Aug. 4, 1939, Sec. 4, provided for the payment
    of compensation to officers of the Army, Navy, Marine Corps, or
    Coast Guard.

                     EFFECTIVE DATE OF 1958 AMENDMENT                 
      For effective date of amendment by Pub. L. 85-507, see section
    21(a) of Pub. L. 85-507.

                                  REPEALS                              
      Act Oct. 28, 1949, ch. 782, cited as a credit to this section,
    was repealed (subject to a savings clause) by Pub. L. 89-554, Sept.
    6, 1966, Sec. 8, 80 Stat. 632, 655.

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      For transfer of functions of United States Maritime Commission,
    see Reorg. Plan No. 6 of 1949, Reorg. Plan No. 21 of 1950, and
    Reorg. Plan No. 7 of 1961, set out below.
      For transfer of authorities, functions, personnel, and assets of
    the Coast Guard, including the authorities and functions of the
    Secretary of Transportation relating thereto, to the Department of
    Homeland Security, and for treatment of related references, see
    sections 468(b), 551(d), 552(d), and 557 of Title 6, Domestic
    Security, and the Department of Homeland Security Reorganization
    Plan of November 25, 2002, as modified, set out as a note under
    section 542 of Title 6.
      Coast Guard transferred to Department of Transportation, and
    functions, powers, and duties relating to Coast Guard of Secretary
    of the Treasury and of other officers and offices of Department of
    the Treasury transferred to Secretary of Transportation by Pub. L.
    89-670, Sec. 6(b)(1), Oct. 15, 1966, 80 Stat. 938. Section 6(b)(2)
    of Pub. L. 89-670, however, provided that notwithstanding such
    transfer of functions, Coast Guard shall operate as part of Navy in
    time of war or when President directs as provided in section 3 of
    Title 14, Coast Guard. See section 108 of Title 49, Transportation.
      For transfer of functions of other officers, employees, and
    agencies of Department of the Treasury, with certain exceptions, to
    Secretary of the Treasury with power to delegate, see Reorg. Plan
    No. 26 of 1950, Secs. 1, 2, eff. July 31, 1950, 15 F.R. 4935, 64
    Stat. 1280, 1281, set out in the Appendix to Title 5, Government
    Organization and Employees. Functions of Coast Guard, and
    Commandant of Coast Guard, excepted from transfer when Coast Guard
    is operating as part of Navy under sections 1 and 3 of Title 14.

-MISC2-
    FEDERAL MARITIME COMMISSION; TERM OF OFFICE; VACANCIES; CONTINUITY
                                OF SERVICE
      Pub. L. 89-56, June 30, 1965, 79 Stat. 195, provided; "That
    Commissioners of the Federal Maritime Commission, provided for by
    section 102 of Reorganization Plan Numbered 7 of 1961 (75 Stat.
    849), shall hereafter be appointed for a term of five years except
    that one of the two terms which commence July 1, 1965, shall
    initially be for four years and thereafter shall be for five years:
    Provided, however, That a person chosen to fill a vacancy shall be
    appointed only for the unexpired term of the Commissioner whom he
    succeeds: Provided, further, That upon the expiration of his term
    of office a Commissioner shall continue to serve until his
    successor shall have been appointed and shall have qualified."

        COMPENSATION OF FEDERAL MARITIME COMMISSIONERS AND MARITIME
                               ADMINISTRATOR
      Annual basic compensation of Chairman of Commission, members of
    Commission, and Administrator, Maritime Administration, see
    sections 5314 and 5315 of Title 5, Government Organization and
    Employees.

-EXEC-
              EX. ORD. NO. 11156. MARITIME ADVISORY COMMITTEE          
      Ex. Ord. No. 11156, eff. June 17, 1964, 29 F.R. 7855, which
    established the Maritime Advisory Committee, was revoked by Ex.
    Ord. No. 11427, eff. Sept. 4, 1968, 33 F.R. 12617.

-MISC3-
                     REORGANIZATION PLAN NO. 7 OF 1961                 
    Eff. Aug. 12, 1961, 26 F.R. 7315, 75 Stat. 840, as amended Pub. L.
      88-426, title III, Sec. 305(19), Aug. 14, 1964, 78 Stat. 425;
      Pub. L. 91-469, Sec. 38, Oct. 21, 1970, 84 Stat. 1036; Pub. L.
      105-258, title II, Sec. 202, Oct. 14, 1998, 112 Stat. 1915
    Prepared by the President and transmitted to the Senate and the
      House of Representatives in Congress assembled, June 12, 1961,
      pursuant to the provisions of the Reorganization Act of 1949, 63
      Stat. 203, as amended [see 5 U.S.C. 901 et seq.].

                            MARITIME FUNCTIONS                        

                    PART I. FEDERAL MARITIME COMMISSION                

           SECTION 101. CREATION OF FEDERAL MARITIME COMMISSION       
      (a) There is hereby established a Federal Maritime Commission,
    hereinafter referred to as the Commission.
      (b) The Commission shall not be a part of any executive
    department or under the authority of the head of any executive
    department.

                  SEC. 102. COMPOSITION OF THE COMMISSION              
      (a) The Commission shall be composed of five Commissioners, who
    shall be appointed by the President by and with the advice and
    consent of the Senate. Each Commissioner shall be removable by the
    President for inefficiency, neglect of duty, or malfeasance in
    office.
      (b) The President shall from time to time designate one of the
    Commissioners to be the Chairman of the Commission.
      (c) Of the first five Commissioners appointed hereunder, one
    shall be appointed for a term expiring on June 30, 1962, one for a
    term expiring on June 30, 1963, one for a term expiring on June 30,
    1964, and two for terms expiring on June 30, 1965. Their successors
    shall be appointed for terms of four years, except that any person
    chosen to fill a vacancy shall be appointed only for the unexpired
    term of the Commissioner whom he succeeds. Not more than three of
    the Commissioners shall be appointed from the same political party.
    A vacancy in the office of any such Commissioner shall be filled in
    the same manner as the original appointment.
      (d) A vacancy or vacancies in the membership of Commission shall
    not impair the power of the Commission to execute its functions.
    The affirmative vote of a majority of the members serving on the
    Commission is required to dispose of any matter before the
    Commission. [As amended Pub. L. 88-426, title III, Sec. 305(19)(A),
    Aug. 14, 1964, 78 Stat. 425; Pub. L. 105-258, title II, Sec. 202,
    Oct. 14, 1998, 112 Stat. 1915.]
      [Commissioners of the Federal Maritime Commission appointed to
    five year terms, appointed to vacancies only for unexpired term,
    and to serve until appointment and qualification of successor, see
    Pub. L. 89-56, set out as a Federal Maritime Commission; Term of
    Office; Vacancies; Continuity of Service note above.]

               SEC. 103. TRANSFER OF FUNCTIONS TO COMMISSION           
      The following functions, which are now vested in the Federal
    Maritime Board under the provisions of Reorganization Plan No. 21
    of 1950 (64 Stat. 1273), are hereby transferred from that Board to
    the Commission:
      (a) All functions under the provisions of sections 14-20,
    inclusive, and sections 22-33, inclusive, of the Shipping Act,
    1916, as amended ([former] 46 U.S.C. 812-819 and 821-832),
    including such functions with respect to the regulation and control
    of rates, services, practices, and agreements of common carriers by
    water and of other persons.
      (b) All functions with respect to the regulation and control of
    rates, fares, charges, classifications, tariffs, regulations, and
    practices of common carriers by water under the provisions of the
    Intercoastal Shipping Act, 1933, as amended ([former] 46 U.S.C. 843-
    848).
      (c) The functions with respect to the making of rules and
    regulations affecting shipping in the foreign trade to adjust or
    meet conditions unfavorable to such shipping, and with respect to
    the approval, suspension, modification, or annulment of rules or
    regulations of other Federal agencies affecting shipping in the
    foreign trade, under the provisions of section 19 of the Merchant
    Marine Act, 1920, as amended (46 U.S.C. 876), exclusive of
    subsection (1)(a) thereof.
      (d) The functions with respect to investigating discriminatory
    rates, charges, classifications, and practices in the foreign
    trade, and with respect to recommending legislation to correct such
    discrimination, under the provisions of section 212(e) of the
    Merchant Marine Act, 1936, as amended (46 U.S.C. 1122(f)).
      (e) To the extent that they relate to functions transferred to
    the Commission by the foregoing provisions of this section:
      (1) The functions with respect to requiring the filing of
    reports, accounts, records, rates, charges, and memoranda, under
    the provisions of section 21 of the Shipping Act, 1916, as amended
    ([former] 46 U.S.C. 820).
      (2) The functions with respect to adopting rules and regulations,
    making reports and recommendations to Congress, subpoenaing
    witnesses, administering oaths, taking evidence, and requiring the
    production of books, papers, and documents, under the provisions of
    sections 204, 208, and 214 of the Merchant Marine Act, 1936, as
    amended (46 U.S.C. 1114, 1118, and 1124).

                SEC. 104. TRANSFER OF FUNCTIONS TO CHAIRMAN            
      There are hereby transferred to the Chairman of the Commission:
      (a) The functions of the Chairman of the Federal Maritime Board,
    including his functions derived from the provisions of
    Reorganization Plan No. 6 of 1949, to the extent that they relate
    to the functions transferred to the Commission by the provisions of
    section 103 of this reorganization plan.
      (b) The functions of the Secretary of Commerce to the extent that
    they are necessary for, or incidental to, the administration of the
    functions transferred to the Commission by the provisions of
    section 103 of this reorganization plan.

                      SEC. 105. AUTHORITY TO DELEGATE                  
      (a) The Commission shall have the authority to delegate, by
    published order or rule, any of its functions to a division of the
    Commission, an individual Commissioner, a hearing examiner, or an
    employee or employee board, including functions with respect to
    hearing, determining, ordering, certifying, reporting or otherwise
    acting as to any work, business, or matter: Provided, however, That
    nothing herein contained shall be deemed to supersede the
    provisions of section 7(a) of the Administrative Procedure Act (60
    Stat. 241), as amended [see 5 U.S.C. 556].
      (b) With respect to the delegation of any of its functions, as
    provided in subsection (a) of this section, the Commission shall
    retain a discretionary right to review the action of any such
    division of the Commission, individual Commissioner, hearing
    examiner, employee or employee board, upon its own initiative or
    upon petition of a party to or an intervenor in such action, within
    such time and in such manner as the Commission shall by rule
    prescribe: Provided, however, That the vote of a majority of the
    Commission less one member thereof shall be sufficient to bring any
    such action before the Commission for review.
      (c) Should the right to exercise such discretionary review be
    declined, or should no such review be sought within the time stated
    in the rules promulgated by the Commission, then the action of any
    such division of the Commission, individual Commissioner, hearing
    examiner, employee or employee board, shall, for all purposes,
    including appeal or review thereof, be deemed to be the action of
    the Commission.
      (d) There are hereby transferred to the Chairman of the
    Commission the functions with respect to the assignment of
    Commission personnel, including Commissioners, to perform such
    functions as may have been delegated by the Commission to
    Commission personnel, including Commissioners, pursuant to the
    foregoing subsections of this section.

                      PART II. DEPARTMENT OF COMMERCE                  

                    SECTION 201. MARITIME ADMINISTRATOR                
      There shall be at the head of the Maritime Administration
    (established by the provisions of Part II of Reorganization Plan
    No. 21 of 1950) a Maritime Administrator, hereinafter referred to
    as the Administrator. The Assistant Secretary of Commerce for
    Maritime Affairs shall, ex officio, be the Administrator. The
    Administrator shall perform such duties as the Secretary of
    Commerce shall prescribe. [As amended Pub. L. 88-426, title III,
    Sec. 305(19)(B), Aug. 14, 1964, 78 Stat. 425; Pub. L. 91-469, Sec.
    38(a), Oct. 21, 1970, 84 Stat. 1036.]

               SEC. 202. FUNCTIONS OF SECRETARY OF COMMERCE           
      (a) Except to the extent inconsistent with the provisions of
    sections 101(b) or 104(b) of this reorganization plan, there shall
    remain vested in the Secretary of Commerce all the functions
    conferred upon the Secretary by the provisions of Reorganization
    Plan No. 21 of 1950.
      (b) There are hereby transferred to the Secretary of Commerce:
      (1) All functions of the Federal Maritime Board under the
    provisions of section 105(1) to 105(3), inclusive, of
    Reorganization Plan No. 21 of 1950.
      (2) Except to the extent transferred to the Commission by the
    provisions of section 103(e) of this reorganization plan, the
    functions described in the said section 103(e).
      (3) Any other functions of the Federal Maritime Board not
    otherwise transferred by the provisions of part I of this
    reorganization plan.
      (4) Except to the extent transferred to the Chairman of the
    Commission by the provisions of Part I of this reorganization plan,
    the functions of the Chairman of the Federal Maritime Board.

                     SEC. 203. DELEGATION OF FUNCTIONS                 
      The provisions of sections 2 and 4 of Reorganization Plan No. 5
    of 1950 (64 Stat. 1263) shall be applicable to all functions
    transferred to the Secretary of Commerce by, or remaining vested in
    him under, the provisions of this reorganization plan.

                       PART III. GENERAL PROVISIONS                   

                     SECTION 301. CONFLICT OF INTEREST                 
      The provisions of the last sentence of section 201(b) of the
    Merchant Marine Act, 1936, as affected by the provisions of
    Reorganization Plan No. 21 of 1950 (46 U.S.C. Sec. 1111(b))
    (prohibiting the members of the Federal Maritime Board and all
    officers and employees of that Board or of the Maritime
    Administration from being in the employ of any other person, firm,
    or corporation, or from having any pecuniary interest in or holding
    any official relationship with any carrier by water, shipbuilder,
    contractor, or other person, firm, association, or corporation with
    whom the Federal Maritime Board or the Maritime Administration may
    have business relations) shall hereafter be applicable to the
    Commissioners composing the Commission and all officers and
    employees of the Commission. [As amended Pub. L. 91-469, Sec.
    38(b), Oct. 21, 1970, 84 Stat. 1036.]

                      SEC. 302. INTERIM APPOINTMENTS                  
      Pending the initial appointment hereunder of the Commissioners
    composing the Commission and of the Maritime Administrator, but not
    for a period exceeding 90 days, such officers of the executive
    branch of the Government (including any person who is a member of
    the Federal Maritime Board or Deputy Maritime Administrator
    immediately prior to the taking effect of the provisions of this
    reorganization plan) as the President shall designate under the
    provisions of this section shall be Acting Commissioners of the
    Federal Maritime Commission or Acting Maritime Administrator. The
    President may designate one of such Acting Commissioners as Acting
    Chairman of the Commission. Any person who is not while serving
    under an interim appointment pursuant to the foregoing provisions
    of this section receiving compensation attached to another Federal
    office shall receive the compensation herein provided for the
    office wherein he serves in an interim capacity.

                      SEC. 303. INCIDENTAL TRANSFERS                  
      (a) So much of the personnel, property, records, and unexpended
    balances of appropriations, allocations, and other funds employed,
    used, held, available, or to be made available in connection with
    the functions transferred to the Commission or to the Chairman of
    the Commission by the provisions of Part I of this reorganization
    plan as the Director of the Bureau of the Budget shall determine
    shall be transferred to the Commission at such time or times as the
    Director shall direct.
      (b) Such further measures and dispositions as the Director of the
    Bureau of the Budget shall deem to be necessary in order to
    effectuate the transfers provided for in subsection (a) of this
    section shall be carried out in such manner as he shall direct and
    by such agencies as he shall designate.
      (c) Subject to the foregoing provisions of this section, the
    Secretary of Commerce may transfer within the Department of
    Commerce personnel, property, records, and unexpended balances of
    appropriations, allocations, and other funds employed, used, held,
    available, or to be made available in connection with functions
    which were transferred to the Department of Commerce (including the
    Federal Maritime Board and the Chairman thereof) by the provisions
    of Reorganization Plan No. 21 of 1950.

               SEC. 304. ABOLITION OF FEDERAL MARITIME BOARD           
      The Federal Maritime Board, including the offices of the members
    of the Board, is hereby abolished, and the Secretary of Commerce
    shall provide for the termination of any outstanding affairs of the
    said Board not otherwise provided for in this reorganization plan.

                      SEC. 305. STATUS OF PRIOR PLAN                  
      The following provisions of Reorganization Plan No. 21 of 1950
    are hereby superseded:
      (1) Part I.
      (2) Section 202.
      (3) Sections 302 to 307, inclusive.

                         MESSAGE OF THE PRESIDENT                     
    To the Congress of the United States:
      I transmit herewith Reorganization Plan No. 7 of 1961, prepared
    in accordance with the Reorganization Act of 1949, as amended, and
    providing for the reorganization of maritime functions.
      The basic objective of the plan is to strengthen and revitalize
    the administration of our Federal programs concerned with the
    promotion and development of the U.S. merchant marine by
    concentrating responsibility in separate agencies for the
    performance of regulatory and promotional functions. The plan
    provides, therefore, for the creation of a separate Federal
    Maritime Commission, composed of five Commissioners, which would be
    charged with the regulatory functions of the present Federal
    Maritime Board. There would be transferred from the Federal
    Maritime Board to the Secretary of Commerce the award of subsidies
    and related promotional functions. The Secretary of Commerce would
    retain the functions transferred to him by Reorganization Plan No.
    21 of 1950 which reorganized the U.S. Maritime Commission into a
    Federal Maritime Board and a Maritime Administration in the
    Department of Commerce. The plan retains the present Maritime
    Administration, provides for an Administrator as head thereof,
    retains a Deputy Maritime Administrator, and effects no change in
    the Office of the Under Secretary of Commerce for Transportation.
    The Federal Maritime Board is abolished.
      Existing organizational arrangements have not proved to be
    satisfactory. The development and maintenance of a sound maritime
    industry require that the Federal Government carry out its dual
    responsibilities for regulation and promotion with equal vigor and
    effectiveness. Intermingling of regulatory and promotional
    functions has tended in this instance to dilute responsibility and
    has led to serious inadequacies, particularly in the administration
    of regulatory functions. Recent findings by committees of the
    Congress disclose serious violations of maritime laws and point to
    the urgent need for a reorganization to vest in completely separate
    agencies a responsibility for (1) regulatory functions and (2)
    promotional and operating functions.
      The plan would provide the most appropriate organizational
    framework for each of the functions concerned. Regulation would be
    made the exclusive responsibility of a separate commission
    organized along the general lines of other regulatory agencies. On
    the other hand, nonregulatory functions, including the
    determination and award of subsidies and other promotional and
    operating activities, would be concentrated in the head of the
    Department of Commerce. The Secretary of Commerce is best qualified
    to coordinate these activities with other transportation and
    related economic programs.
      The vesting of all subsidy functions in the Secretary of Commerce
    will make it possible for the Congress and the President to hold a
    single official responsible and accountable for the effective
    conduct of all aspects of this program, including the size and
    character of the fleet under the U.S. flag, the need for Government
    assistance, and requirements for appropriations to support subsidy
    programs. Furthermore, the placing of these functions in the
    Secretary of Commerce will assure essential supervision and review
    of subsidy awards.
      The taking effect of the reorganizations included in the
    accompanying reorganization plan will result in a modest increase
    in expenditures. The improved organizational alinements provided by
    the plan will, however, make possible a more effective and
    expeditious administration of the statutory objectives to foster
    and promote a U.S. merchant marine capable of meeting the Nation's
    needs in peace and war. Failure to meet these objectives would be
    far more costly than the anticipated increase in expenditures under
    the plan.
      After investigation, I have found and hereby declare that each
    reorganization included in Reorganization Plan No. 7 of 1961 is
    necessary to accomplish one or more of the purposes set forth in
    section 2(a) of the Reorganization Act of 1949, as amended.
      I have also found and hereby declare that it is necessary to
    include in the accompanying reorganization plan, by reason of
    reorganizations made thereby, provisions for the appointment and
    compensation of new officers specified in sections 102 and 201 of
    the plan. The rates of compensation fixed for these officers are,
    respectively, those which I have found to prevail in respect of
    comparable officers in the executive branch of the Government.
      I recommend that the Congress allow the reorganization plan to
    become effective.
                                                        John F. Kennedy.

      The White House, June 12, 1961.

                    REORGANIZATION PLAN NO. 21 OF 1950                

     EFF. MAY 24, 1950, 15 F.R. 3178, 64 STAT. 1273, AS AMENDED REORG.
    PLAN NO. 7 OF 1961, SEC. 305, EFF. AUG. 12, 1961, 26 F.R. 7315, 75
     STAT. 840; OCT. 21, 1970, PUB. L. 91-469, SEC. 37, 84 STAT. 1036
    Prepared by the President and transmitted to the Senate and the
      House of Representatives in Congress assembled, March 13, 1950,
      pursuant to the provisions of the Reorganization Act of 1949,
      approved June 20, 1949 [see 5 U.S.C. 901 et seq.].

                      PART I. FEDERAL MARITIME BOARD                  
      Sections 101-106. [Superseded. Reorg. Plan No. 7 of 1961, Sec.
    305, eff. Aug. 12, 1961, 26 F.R. 7315, 75 Stat. 840. Section 101
    established the Federal Maritime Board. Section 102 provided for
    the composition of the Federal Maritime Board. Section 103
    transferred certain functions from the Chairman of the United
    States Maritime Commission to the Chairman of the Federal Maritime
    Board. Section 104 transferred regulatory functions of the United
    States Maritime Commission to the Federal Maritime Board. Section
    105 transferred subsidy award and other functions of the United
    States Maritime Commission to the Federal Maritime Board. Section
    106 provided that the Board was to be an agency within the
    Department of Commerce, but would be independent of the Secretary
    of Commerce with respect to functions transferred to it under
    section 104.]

                     PART II. MARITIME ADMINISTRATION                 

               SEC. 201. CREATION OF MARITIME ADMINISTRATION           
      There is hereby established in the Department of Commerce a
    Maritime Administration.

      Sec. 202 [Superseded. Reorg. Plan No. 7 of 1961, Sec. 305, eff.
    Aug. 12, 1961, 26 F.R. 7315, 75 Stat. 840. Section provided for a
    Maritime Administrator to be at the head of the Maritime
    Administration, and that the Chairman of the Federal Maritime Board
    would be such Administrator and would perform duties prescribed by
    the Secretary of Commerce.]

                  SEC. 203. DEPUTY MARITIME ADMINISTRATOR              
      There shall be in the Maritime Administration a Deputy Maritime
    Administrator, who shall be appointed by the Secretary of Commerce,
    after consultation with the Administrator, under the classified
    civil service, and who shall perform such duties as the
    Administrator shall prescribe. The Deputy Maritime Administrator
    shall be Acting Maritime Administrator during the absence or
    disability of the Administrator and, unless the Secretary of
    Commerce shall designate another person, during a vacancy in the
    office of Administrator: Provided, That such Deputy Administrator
    shall at no time sit as a member or acting member of the Federal
    Maritime Board.

                      SEC. 204. TRANSFER OF FUNCTIONS                  
      Except as otherwise provided in part I of this reorganization
    plan, all functions of the United States Maritime Commission and of
    the Chairman of said Commission are hereby transferred to the
    Secretary of Commerce. The Secretary of Commerce may from time to
    time make such provisions as he shall deem appropriate authorizing
    the performance by the Maritime Administrator of any function
    transferred to such Secretary by the provisions of this
    reorganization plan.

                       PART III. GENERAL PROVISIONS                   

         SEC. 301. UNDER SECRETARY OF COMMERCE FOR TRANSPORTATION     
      There shall be in the Department of Commerce an additional office
    of Under Secretary with the title "Under Secretary of Commerce for
    Transportation." The Under Secretary of Commerce for Transportation
    shall be appointed by the President, by and with the advice and
    consent of the Senate, shall receive compensation at the rate
    prescribed by law for Under Secretaries of Executive departments,
    and shall perform such duties as the Secretary of Commerce shall
    prescribe.

      Secs. 302-307. [Superseded. Reorg. Plan No. 7 of 1961, Sec. 305,
    eff. Aug. 12, 1961, 26 F.R. 7315, 75 Stat. 840. Section 302
    provided that person who was both Administrator and Chairman was to
    make joint use of the personnel under his supervision. Section 303
    made conflict of interest provisions of the Merchant Marine Act,
    1936, applicable to members of the Federal Maritime Board and
    officers and employees of the Board or of the Maritime
    Administration. Section 304 allowed the President to make interim
    appointments to the Federal Maritime Board from officers of the
    Executive Branch. Section 305 transferred to the Department of
    Commerce all property, personnel, records, and funds of the United
    States Maritime Commission. Section 306 abolished the United States
    Maritime Commission. Section 307 provided that the functions
    transferred by this reorganization plan would not be subject to
    Reorg. Plan No. 5 of 1950.]

                         MESSAGE OF THE PRESIDENT                     
    To the Congress of the United States:
      I transmit herewith Reorganization Plan No. 21 of 1950, prepared
    in accordance with the provisions of the Reorganization Act of
    1949. This plan effects a basic reorganization of the functions of
    the United States Maritime Commission along the lines recommended
    by the Commission on Organization of the Executive Branch of the
    Government.
      Within the last 3 years three different bodies have studied the
    administration of the Maritime Commission. All have concluded that
    the operating deficiencies of the agency arise from inappropriate
    and unsound organization and that a fundamental reorganization is
    essential. The first of these bodies, the President's Advisory
    Committee on the Merchant Marine, in 1947, stated:
          It appears to the Committee that the organization structure
        of the Maritime Commission as set up in the Merchant Marine Act
        of 1936 is wholly inadequate for the efficient conduct of the
        multitude of diverse activities for which the Maritime
        Commission is now responsible. The deficiencies of the
        statutory organization for administrative action are regarded
        by the Committee to be the most serious obstacle standing in
        the way of the development of the Merchant Marine of this
        country.
    Similarly, the survey of the Maritime Commission in 1948 for the
    Senate Committee on Expenditures in the Executive Departments
    concluded that - 
          The fundamental weakness of the Maritime Commission, as it is
        now constituted, lies in its proscribed organization.
    On the basis of investigations of the Maritime Commission by two of
    its task forces, the Commission on Organization of the Executive
    Branch stated:
          It is an anomaly that a regulatory commission should also
        conduct the executive function of managing a huge business;
        that executive functions should be carried on by an agency that
        is not subject to Presidential directions; that executive
        functions should be carried on by a full-time board * * *.
      While the recommendations of the various studies differ in some
    details, they agree on principles and on the main features of
    reorganization.
      Basically, the administrative difficulties of the Maritime
    Commission have arisen, as all these studies agree, from the fact
    that the Commission is responsible for performing two fundamentally
    different types of functions which call for different types of
    organization. These two classes of functions are (a) regulatory and
    (b) operating and promotional. Under various acts the Commission
    regulates rates and services of water carriers; passes on
    agreements among carriers; and protects shippers against unfair and
    discriminatory practices. This type of activity requires the
    deliberation and independence of judgment which a board or
    commission is especially well designed to provide. But at the same
    time the Commission is charged with the conduct of a variety of
    large and costly promotional and business-type programs demanding
    the prompt and vigorous administration for which experience both in
    Government and in private enterprise has demonstrated that a single
    executive is essential.
      The Maritime Commission has charge of the construction of
    merchant vessels for subsidized operators and for Government
    account. It owns and maintains the largest merchant fleet in the
    world, consisting of 2,200 vessels aggregating more than 22,000,000
    dead-weight tons. It charters and sells ships and, in time of war
    or national emergency, requisitions and operates vessels for the
    Government. It grants construction and operating differential
    subsidies to private shipping companies to maintain an active
    privately operated American merchant marine. It makes loans and
    insures mortgages to assist carriers in acquiring new vessels, and
    it conducts programs for training officers and seamen for the
    merchant marine. For the present fiscal year the performance of
    these functions will involve the expenditure of approximately
    $162,000,000 and the direction of an organization of 5,500
    employees. In short, the administration of the Maritime Commission
    is a vast business undertaking. Moreover, the work of the
    Commission affects significantly the interests of both business and
    labor in the maintenance of a sound maritime industry.
      Further than this, many of the activities of the Maritime
    Commission are closely related to other programs of the Government
    and have to be coordinated with them. In the construction of a
    subsidized ship the Commission must cooperate with the Coast Guard
    on those features of design, materials, and equipment which affect
    the safety of the vessel and with the Navy on those which
    especially affect the use of the ship for national defense.
    Furthermore, the whole program of subsidized ship construction
    needs to be adjusted to the plans and requirements for national
    defense. At the same time the Commission's programs for the
    development of the merchant marine must be coordinated with our
    foreign policy and with Federal programs with respect to other
    branches of transportation.
      While an independent commission is an appropriate instrument for
    the performance of the regulatory functions of the Maritime
    Commission, such an agency obviously is not the type required to
    provide strong and efficient administration of the large operating
    programs now entrusted to the Commission or to obtain the needed
    coordination with other activities of the executive branch. This
    fact is amply demonstrated by the administrative difficulties and
    the complicated problems of coordination encountered in the
    operation of the Commission since the war and by the necessity of
    transferring a large part of its functions to the War Shipping
    Administration, headed by a single executive, during the war.
      Briefly, this reorganization plan provides for a small Federal
    Maritime Board and a Maritime Administration in the Department of
    Commerce to perform the functions of the Maritime Commission, and
    abolishes the existing Commission. It transfers to the Board the
    regulatory functions of the Commission and definitely guarantees
    the independence of the Board in the performance of these
    functions. In addition, it vests directly in the Board the
    determination and award of construction and operating differential
    subsidies. In the performance of its subsidy functions the Board
    will be subject to general policy guidance by the Secretary of
    Commerce. The Board, however, and it alone, will determine to whom
    subsidies shall be granted and will make and award the subsidy
    contracts. Its actions therein will be conclusive and will not be
    subject to modification by any other agency or officer of the
    Department of Commerce. The other functions of the Maritime
    Commission, including carrying out the subsidy agreements made by
    the Board and administering the various operating programs, are
    transferred to the Secretary of Commerce for administration through
    the Maritime Administration. Thus, the plan provides for each of
    the two types of functions now vested in the Maritime Commission
    the type of organization best suited to its performance. At the
    same time, the plan will facilitate coordination of maritime
    policies and programs with other related policies and programs.
      The division of functions under this plan conforms directly to
    the recommendations of the Commission on Organization of the
    Executive Branch of the Government. While the award of subsidies is
    a promotional rather than a regulatory function and might logically
    be assigned to the Maritime Administration instead of the Board,
    its impact on the shipping industry and on individual carriers is
    such as to make desirable the deliberation and combined judgment of
    a board. Accordingly, I have adhered to the recommendation of the
    Commission on Organization that this function be vested in a
    multiple body rather than a single official. Likewise, in line with
    the recommendations of the Commission, the plan assigns the
    determination of the over-all route pattern to the Secretary of
    Commerce.
      The Maritime Board will consist of three members appointed by the
    President with the consent of the Senate for overlapping terms of 4
    years. Not more than two of the members can be of the same
    political party. The Board, therefore, will be a smaller and more
    wieldy body which can function with greater expedition and
    efficiency than the existing five-member Commission. The Chairman
    will be designated by the President from the members of the Board
    and will be, ex officio, the Maritime Administrator and as such the
    head of the Maritime Administration. The plan also provides for a
    Deputy Maritime Administrator appointed by the Secretary of
    Commerce under the classified civil service. After investigation I
    have found, and hereby declare, that by reason of the
    reorganizations made by this plan, it is necessary to include in
    the plan provisions for the appointment and compensation of the
    members of the Federal Maritime Board and for the appointment of
    the Deputy Maritime Administrator.
      In making the Chairman of the Federal Maritime Board the Maritime
    Administrator, the plan adopts an arrangement substantially similar
    to that which prevailed during the war, when the same individual
    served as Chairman of the Maritime Commission and head of the War
    Shipping Administration. This arrangement will have important
    advantages. It will facilitate cooperation between the Board and
    the Administration on matters of concern to both. Also, it will
    avoid dividing the personnel of the Maritime Commission, since the
    Chairman of the Board will supervise the personnel assisting it in
    the performance of its functions, as is now the case in the
    Maritime Commission, and in his capacity as Administrator he will
    have charge of the personnel carrying on the work of the Maritime
    Administration. The plan provides for the joint operation of the
    officers and employees under the Administrator and Chairman as a
    single body of personnel. The maintenance of a unified staff is
    essential for efficient and economical administration because many
    of the technical and professional personnel, such as ship designers
    and attorneys, now assist the Maritime Commission on problems of
    subsidy determination and also participate in the subsequent
    administration of subsidy agreements and in performing nonsubsidy
    functions.
      The inclusion of the new Board in the Department of Commerce will
    permit the use of the administrative services of the Department.
    More important, it will eliminate the necessity of splitting the
    personnel of the Maritime Commission between the Department and an
    outside agency. In addition, it will relieve the President of
    having to handle relations with a separate maritime agency.
      In establishing the Department of Commerce the Congress provided
    in the organic act of the Department that - 
          It shall be the province and duty of said Department to
        foster, promote, and develop the foreign and domestic commerce,
        * * * shipping, * * * and the transportation facilities of the
        United States.
    Over the years, however, transportation functions have become
    widely scattered throughout the executive branch. As a result,
    intelligent planning and budgeting of Federal transportation
    activities and the necessary coordination of transportation
    programs have become extremely difficult or impossible. The
    transfer of the functions of the Maritime Commission to the
    Department of Commerce will constitute a major step in correcting
    this condition.
      Without question the Department of Commerce is now the
    appropriate center for transportation programs. It contains the
    Civil Aeronautics Administration - the major operating and
    promotional agency of the Government in the field of air
    transportation - and the Weather Bureau, and the Coast and Geodetic
    Survey, which provide vital services to transportation. As a result
    of Reorganization Plan No. 7 of 1949, it now also includes the
    Bureau of Public Roads, the leading promotional agency dealing with
    land transportation. Also, it has the Inland Waterways Corporation
    in the field of water transportation. The transfer of the functions
    of the Maritime Commission will bring into the Department the
    principal water-transportation agency of the Government. These
    actions will go a long way toward the establishment of a sound and
    effective organization for the operating and promotional programs
    of the Government relating to transportation.
      It is my purpose to look to the Secretary of Commerce for
    leadership with respect to transportation problems and for the
    development of over-all transportation policy within the executive
    branch. Because of the magnitude and importance of the
    transportation functions transferred to the Department of Commerce
    by this reorganization plan, I have found and hereby declare that
    it is necessary to strengthen the top administrative structure of
    the Department by providing for the appointment and compensation of
    a new Under Secretary of Commerce for Transportation. This will
    make available an officer of the highest rank to assist the
    Secretary in supervising the varied and complex transportation
    programs of the Department and providing central leadership in
    transportation matters. With the many responsibilities of the
    Secretary of Commerce in other areas, the creation of this office
    is essential to enable him properly to fulfill his obligations with
    respect to transportation.
      After careful investigation I have found and I hereby declare
    that each of the reorganizations contained in this reorganization
    plan is necessary to accomplish one or more of the purposes set
    forth in section 2(a) of the Reorganization Act of 1949. The rates
    of compensation fixed by the provisions of the reorganization plan
    for the Under Secretary of Commerce for Transportation, the
    Chairman, and the other two members of the Federal Maritime Board
    are, respectively, those which I have found to prevail in respect
    of comparable officers in the executive branch of the Government.
      In summary, the reorganizations provided by this plan will have
    the following principal advantages: They will provide an efficient
    organization headed by a single responsible official to administer
    the large operating and business-type programs of the Maritime
    Commission. At the same time, they will preserve the benefits of a
    bipartisan board for the performance of the regulatory functions of
    the Commission and the determination of subsidies. They will reduce
    the number of agencies reporting directly to the President and
    simplify the over-all management of the executive branch. In doing
    so, they will provide more adequate machinery for supervising the
    administration of the maritime programs and will facilitate their
    coordination with related policies and programs of the executive
    branch. Finally, they will accomplish a major advance in the
    development of an effective organization of Federal transportation
    programs in accord with the recommendations of the Commission on
    Organization of the Executive Branch of the Government. While it is
    impossible to estimate in advance the savings which will be brought
    about by this plan, the improvements in administrative efficiency
    resulting from it should produce substantial reductions in
    expenditures for the programs transferred by the plan.
                                                         Harry S Truman.

      The White House, March 13, 1950.

                     REORGANIZATION PLAN NO. 6 OF 1949                 

              EFF. AUG. 20, 1949, 14 F.R. 5228, 63 STAT. 1069          
    Prepared by the President and transmitted to the Senate and the
      House of Representatives in Congress assembled, June 20, 1949,
      pursuant to the provisions of the Reorganization Act of 1949,
      approved June 20, 1949 [see 5 U.S.C. 901 et seq.].

                     UNITED STATES MARITIME COMMISSION                 

           SECTION 1. ADMINISTRATION OF FUNCTIONS OF COMMISSION       
      The Chairman of the United States Maritime Commission shall be
    the chief executive and administrative officer of the United States
    Maritime Commission. In executing and administering on behalf of
    the Commission its functions (exclusive of functions transferred by
    the provisions of section 2 of this reorganization plan) the
    Chairman shall be governed by the policies, regulatory decisions,
    findings, and determinations of the Commission.

                       SEC. 2. TRANSFER OF FUNCTIONS                   
      There are hereby transferred from the United States Maritime
    Commission to the Chairman of the Commission the functions of the
    Commission with respect to (1) the appointment and supervision of
    all personnel employed under the Commission, (2) the distribution
    of business among such personnel and among organizational units of
    the Commission, and (3) the use and expenditure of funds for
    administrative purposes: Provided, That the provisions of this
    section do not extend to personnel employed regularly and full time
    in the offices of members of the Commission other than the
    Chairman: Provided further, That the heads of the major
    administrative units shall be appointed by the Chairman only after
    consultation with the other members of the Commission.

               SEC. 3. PERFORMANCE OF TRANSFERRED FUNCTIONS           
      The functions of the Chairman under the provisions of this
    reorganization plan shall be performed by him or, subject to his
    supervision and direction, by such officers and employees under his
    jurisdiction as he shall designate.

                         MESSAGE OF THE PRESIDENT                     
    To the Congress of the United States:
      I transmit herewith Reorganization Plan No. 6 of 1949, prepared
    in accordance with the Reorganization Act of 1949. This plan is
    designed to strengthen the administration of the United States
    Maritime Commission by making the Chairman and the chief executive
    and administrative officer of the Commission and vesting in him
    responsibility for the appointment of its personnel and the
    supervision and direction of their activities. After investigation,
    I have found and hereby declare that each reorganization included
    in this plan is necessary to accomplish one or more of the purposes
    set forth in section 2(a) of the Reorganization Act of 1949.
      Unlike other major regulatory commissions, the Maritime
    Commission is responsible not only for the performance of important
    regulatory functions but also for the administration of large and
    complex operating and promotional programs. Whereas the budgets of
    most regulatory agencies amount to only a few million dollars
    annually, the expenditures of the Maritime Commission exceed
    $130,000,000 a year. As a result of the war the Commission is the
    owner of a fleet of over 2,300 ships, aggregating more than
    23,000,000 dead-weight tons.
      While it is the policy of the Government, as set forth by the
    Merchant Marine Act of 1936 and the Merchant Ship Sales Act of
    1946, to develop and maintain an adequate and effective merchant
    marine under private ownership, the Commission is still confronted
    with the necessity of carrying on substantial programs for the
    charter and sale of Government-owned vessels and with the
    continuing task of maintaining the reserve merchant fleet.
      Apart from its functions with respect to the war-built fleet, the
    accomplishment of the Government's permanent objective with respect
    to the development of the American merchant marine inevitably
    involves the Commission to a wide variety of activities. Among
    these are the regulation of rates and competitive practices of
    water carriers, the determination of essential trade routes and
    services, the award of subsidies to offset differences between
    American and foreign costs, the design and construction of ships,
    the inspection of subsidized vessels, and the training of seamen.
      In the last 2 years the operation of the Maritime Commission has
    been subjected to independent examination by three bodies - the
    President's Advisory Committee on the Merchant Marine, the Senate
    Committee on Expenditures in the Executive Departments, and the
    Commission on Organization of the Executive Branch of the
    Government. All of these studies have pointed to difficulties in
    the conduct of the Commission's business and the necessity of
    improved organization to strengthen the administration of the
    agencies. The remedies proposed have differed in some respects, but
    all the studies have emphasized the need of concentrating in a
    single official the management of a large part of the agency's
    work.
      During the war such a concentration was temporarily accomplished
    by Executive order under the authority of the First War Powers Act.
    In effect, the Chairman of the Commission, as War Shipping
    Administrator, was made directly responsible for the administration
    of several major operating programs of the Commission. This
    arrangement proved its value under the stress of war. About a year
    after the end of the fighting, however, it was terminated and the
    organization reverted to the prewar pattern.
      As a result of postwar experience, the Commission appointed a
    general manager in 1948. While this has brought considerable
    improvement, it has not extricated the Commission from
    administration to the degree which is desirable.
      After careful consideration of the problems involved in improving
    the operation of the Maritime Commission, I have concluded that the
    proper action at this time is to concentrate in the Chairman the
    responsibility for the internal administration of the agency. This
    is achieved by the proposed reorganization plan by transferring to
    the Chairman the appointment of the personnel of the agency, except
    for the immediate assistants of the Commissioners, and the
    supervision and direction of their work. This is substantially the
    arrangement recommended for regulatory commissions by the
    Commission on Organization of the Executive Branch of the
    Government.
      Such a plan of organization has many advantages. It leaves in the
    Commission as a body the performance of regulatory functions, the
    determination of subsidies, and the determination of major
    policies. Thus, it utilizes the Commission for the type of work for
    which such a body is best adapted. At the same time the plan places
    under a single official the day-to-day direction of the work of the
    staff within the policies and determinations adopted by the
    Commission in the exercise of its functions. This will provide more
    businesslike administration and help to overcome the delays,
    backlogs, and operating difficulties which have hampered the
    agency. At the same time by freeing the members of the Commission
    of much detail, the plan will enable them to concentrate on major
    questions of policy and program and thereby will obtain earlier and
    better considered resolution of the basic problems of the agency.
      Though the taking effect of this plan in itself may not result in
    substantial immediate economies, it is probable that the improved
    organizational arrangements will bring about, over a period of
    time, improved operations and substantially reduced expenditures.
    An itemization of these reductions, however, in advance if actual
    experience under the plan is not practicable.
      I am convinced that this reorganization plan will contribute
    importantly to the more businesslike and efficient administration
    of the programs of the Maritime Commission.
                                                         Harry S Truman.

      The White House, June 20, 1949.

            FEDERAL MARITIME BOARD AND MARITIME ADMINISTRATION        
      The following is a statement, in part, of the Department of
    Commerce, relating to the organization and functions of the Federal
    Maritime Board, and the Maritime Administration, created by Reorg.
    Plan No. 21 of 1950, set out above, as such statement appeared in
    16 F.R. 44 to 46, Jan. 3, 1951:
      The statement of organization and functions of the Maritime
    Administration issued in 15 F.R. 4454-4457 is hereby revoked and
    the following substituted therefor:
      1. Establishment. The Federal Maritime Board and the Maritime
    Administration were established in the Department of Commerce by
    Reorganization Plan No. 21 of 1950, effective May 24, 1950 [set out
    above]. In performance of their functions the Federal Maritime
    Board and the Maritime Administration are guided by the broad
    declaration of policy stated in Title I of the Merchant Marine Act,
    1936 (49 Stat. 1985) [46 U.S.C. 1101], reaffirmed in section 2 of
    the Merchant Ship Sales Act, 1946 (60 Stat. 41) [50 App. U.S.C.
    1735] * * *.
      2. Organization of the Federal Maritime Board. The Federal
    Maritime Board is composed of three members appointed by the
    President by and with the advice and consent of the Senate. The
    President designates one of the members to serve as Chairman of the
    Federal Maritime Board. The Chairman serves as chief executive and
    administrative officer of the Federal Maritime Board. Any two
    members in office constitute a quorum for the transaction of the
    business of the Federal Maritime Board, and the affirmative votes
    of any two members are sufficient for the disposition of any matter
    which may come before the Federal Maritime Board.
      The Federal Maritime Board has the following organizational
    components: (a) Office of the Chairman of the Federal Maritime
    Board; (b) Offices of the Members of the Federal Maritime Board;
    (c) Secretary's Office; (d) Regulation Office; and (e) Hearing
    Examiners' Office.
      Insofar as he deems desirable, the Chairman of the Federal
    Maritime Board makes use of the officers and employees of the
    Maritime Administration to perform activities for the Federal
    Maritime Board.
      3. Functions of the Federal Maritime Board - (a) Regulatory
    functions. Under Reorganization Plan No. 21 of 1950 the Federal
    Maritime Board is independent of the Secretary of Commerce in the
    performance of the following functions: (1) All functions under the
    provisions of sections 14 to 20, inclusive, and sections 22 to 33,
    inclusive, of the Shipping Act, 1916, as amended [former 46 U.S.C.
    812-819, 821-832], including such functions with respect to the
    regulation and control of rates, services, practices, and
    agreements of common carriers by water and of other persons;
      (2) All functions with respect to the regulation and control of
    rates, fares, charges, classifications, tariffs, regulations, and
    practices of common carriers by water under the provisions of the
    Intercoastal Shipping Act, 1933, as amended [former 46 U.S.C. 843-
    848];
      (3) The functions with respect to the making of rules and
    regulations affecting shipping in the foreign trade to adjust or
    meet conditions unfavorable to such shipping, and with respect to
    the approval, suspension, modification, or annulment of rules or
    regulations of other Federal agencies affecting shipping in the
    foreign trade, under the provisions of section 19 of the Merchant
    Marine Act, 1920, as amended [46 U.S.C. 876], exclusive of
    subsection (1)(a) thereof;
      (4) The functions with respect to investigating discriminatory
    rates, charges, classifications, and practices in the foreign
    trade, and with respect to recommending legislation to correct such
    discrimination, under the provisions of section 212(e) of the
    Merchant Marine Act, 1936 [46 U.S.C. 1122(e)]; and
      (5) So much of the functions with respect to requiring the filing
    of reports, accounts, records, rates, charges, and memoranda, under
    the provisions of section 21 of the Shipping Act, 1916, as amended
    [former 46 U.S.C. 820], as relates to its functions under items (1)
    through (4), above.
      (b) Subsidy contracts. Under Reorganization Plan No. 21 of 1950
    the Federal Maritime Board is guided by the general policies of the
    Secretary of Commerce in performing the following functions: (1)
    The functions with respect to making, amending, and terminating
    construction (reconstruction or reconditioning) differential
    subsidy contracts, including contracts for the construction,
    reconstruction, or reconditioning of vessels and contracts for the
    sale of vessels to subsidy applicants or contracts to pay a
    differential subsidy and the cost of national defense features. In
    the exercise of this function the Federal Maritime Board
    investigates and determines the relative cost of construction of
    comparable vessels in the United States and foreign countries and
    the extent and character of aids and subsidies granted by foreign
    governments to their merchant marines;
      (2) The functions with respect to making, amending, and
    terminating operating differential subsidy contracts and,
    subsequent to entering into an operating differential subsidy
    contract, making determinations with respect to employment and wage
    conditions, and taking action on readjustment of operating cost
    differentials and the sale, assignment, or transfer of the
    contract. In the exercise of this function the Federal Maritime
    Board investigates and determines the relative cost of operating
    vessels under the registry of the United States and under foreign
    registry, and the extent and character of aids and subsidies
    granted by foreign governments to their merchant marines;
      (3) The functions with respect to investigating and reporting on
    relative construction and operating costs in the United States and
    foreign maritime countries, and the relative advantages of
    operating under United States or foreign registry, and on marine
    insurance, navigation laws, and vessel mortgages as authorized
    under section 12 of the Shipping Act, 1916 [former 46 U.S.C. 811];
    and
      (4) The functions with respect to requiring the filing of
    reports, accounts, records, rates, charges, and memoranda as
    relates to its functions as set forth in items (1), (2), and (3),
    above.
      (c) Charters under the Merchant Ship Sales Act, 1946. The Federal
    Maritime Board makes determinations, after public hearings, as to
    whether the bareboat charter of warbuilt dry cargo vessels owned by
    the United States is required in the public interest in any service
    then not adequately served and for which privately owned American-
    flag vessels are not available for charter by private operators on
    reasonable conditions and rates, and certifies its findings to the
    Secretary of Commerce together with any restrictions and conditions
    which it determines to be necessary or appropriate to protect the
    public interest in respect to such charters and to protect
    privately owned vessels against competition from Government vessels
    chartered by the Secretary of Commerce. All such charters are
    reviewed annually by the Federal Maritime Board for the purpose of
    making recommendations to the Secretary of Commerce as to whether
    conditions exist justifying the continuance of the charters. The
    functions of the Secretary of Commerce with respect to the
    chartering of vessels has been delegated to the Maritime
    Administrator.
      (d) War risk insurance. Pursuant to Public Law 763, 81st Congress
    [46 U.S.C. 1281-1294], the Federal Maritime Board makes
    determinations of the fair and reasonable value of vessels insured
    under the provisions of Title XII of the Merchant Marine Act, 1936,
    as amended [46 U.S.C. 1281-1294]. The Secretary of Commerce may not
    settle an insurance claim with respect to a vessel in an amount in
    excess of the vessel's fair and reasonable value as determined by
    the Federal Maritime Board.
      (e) In carrying out its functions under paragraphs (a), (b), (c)
    and (d), above, the Federal Maritime Board adopts rules and
    regulations; makes reports and recommendations to Congress;
    subpoenas witnesses; administers oaths; takes evidence; requires
    the production of books, papers and documents as necessary; issues
    opinions; promulgates orders; engages in enforcement and other
    legal proceedings; and performs all functions formerly performable
    by the Maritime Commission, which have been transferred to the
    Federal Maritime Board pursuant to Reorganization Plan No. 21 of
    1950.
      4. Organization of the Maritime Administration - (a) Maritime
    Administrator. The Chairman of the Federal Maritime Board is ex
    officio the Maritime Administrator. When serving as Maritime
    Administrator, he reports and is responsible to the Secretary of
    Commerce.
      (b) Deputy Maritime Administrator. The Maritime Administrator is
    assisted in his duties by a Deputy Maritime Administrator, who is
    the Acting Maritime Administrator during the absence or disability
    of the Maritime Administrator and, unless the Secretary of Commerce
    designates another person, during a vacancy in the Office of
    Maritime Administrator. The Deputy Maritime Administrator is
    appointed by the Secretary of Commerce, after consultation with the
    Maritime Administrator. The Deputy Maritime Administrator at no
    time sits as a member of the Federal Maritime Board.
      (c) Organizational components. The Maritime Administration has
    the following organizational components: (1) Office of the Maritime
    Administrator; (2) Staff Offices including the Office of the
    General Counsel, the Program Planning Office, the Budget Office,
    and the Personnel Office; (3) Division of Claims; (4) Office of
    Subsidy and Government Aid; (5) Office of Maritime Operations; (6)
    Office of Ship Construction; (7) Office of the Comptroller; and (8)
    Offices of the Coast Directors.
      (d) Use of officers and employees of the Federal Maritime Board.
    Insofar as he deems desirable, the Maritime Administrator makes use
    of officers and employees of the Federal Maritime Board under his
    supervision as Chairman to perform activities for the Maritime
    Administration.
      (5) Functions of the Maritime Administrator. The Maritime
    Administrator is responsible for the performance of all functions
    transferred to the Secretary of Commerce under Reorganization Plan
    No. 21 of 1950, subject to the limitations set forth in Department
    Order No. 116, as amended, with power of redelegation, and for the
    performance of activities for the Federal Maritime Board as
    determined desirable by the Chairman of the Federal Maritime Board.
      (a) The Office of the Maritime Administrator directs the
    activities of the Maritime Administration and includes personnel
    who render staff services to the Maritime Administrator.
      (b) The Office of the General Counsel serves as the law office of
    the Maritime Administration and Federal Maritime Board, renders
    legal advice and opinions to them, and represents them in any
    litigation in which either is interested. The Office of the General
    Counsel has the following divisions: Division of Contracts,
    Division of Legislation, and Division of Litigation.
      (c) The Program Planning Office develops and recommends long-
    range merchant marine policy and programs, reviews existing
    policies and programs in the light of adopted long-range policy,
    and conducts economic studies connected with policy formulation for
    the Maritime Administrator and the Federal Maritime Board.
      (d) The Budget Office develops and presents budgetary requests
    and justifications and allots and maintains budgetary control of
    appropriated funds for the Maritime Administration and the Federal
    Maritime Board.
      (e) The Personnel Office administers the personnel functions of
    the Maritime Administration and the Federal Maritime Board related
    to employment and position classification, including recruitment,
    placement, separations, disciplinary actions, counseling and
    grievance appeal services, training and safety programs, and wage
    rate studies.
      (f) The Division of Claims is responsible for analyzing and
    recommending the basis of settlement of claims in favor of or
    against the Maritime Administration arising out of the war-time
    operations of the former Maritime Commission and War Shipping
    Administration and other claims referred to it for processing prior
    to August 22, 1949.
      (g) The Office of Subsidy and Government Aid is responsible for
    the processing of applications to the Federal Maritime Board and
    the Maritime Administration for subsidy or other government aid and
    the administration of government aid contracts after their
    execution, for the coordination of the work of other organizational
    components in connection therewith, and for the making of
    recommendations with respect to the policy relating to vessel
    chartering. The Office of Subsidy and Government Aid has the
    following divisions: Division of Construction Cost Comparison,
    Division of Contract Evaluation and Administration, Division of
    Operating Cost Comparison, and Division of Shipping Data.
      (h) The Office of Maritime Operations is responsible for the
    conduct of activities relating to the charter, operation, repair,
    reconversion, betterment, reconditioning, and disposal of
    government-owned merchant vessels; the maintenance of reserve
    fleets; the training of seagoing personnel; the procurement and
    disposal of real and personal property; the maintenance or
    operation of warehouses, marine terminals and reserve shipyards
    port development; and the rendering of office services. The Office
    of Maritime Operations has the following divisions: Division of
    General Services, Division of Maintenance and Repair, Division of
    Maritime Training, Division of Vessel Custody, and Division of
    Vessel Operations.
      (i) The Office of Ship Construction is responsible for the
    conduct of activities of the Maritime Administration and the
    Federal Maritime Board relating to ship design and construction,
    and the rendering of technical direction to the Office of Maritime
    Operations with respect to the reconversion, betterment and
    reconditioning of Maritime Administration-owned vessels. The Office
    of Ship Construction has the following divisions: Division of
    Estimates, Division of Preliminary Design, Division of Production,
    and Division of Technical Development; and contains the Vessel
    Trial and Guarantee Survey Boards.
      (j) The Office of the Comptroller is responsible for the
    accounting, auditing, and insurance activities of the Maritime
    Administration and the Federal Maritime Board. The Office of the
    Comptroller has the following divisions: Division of Accounts,
    Division of Audits, Division of Credits and Collections, and
    Division of Insurance.
      (k) The Offices of the Atlantic, Gulf, and Pacific Coast
    Directors are responsible for maintaining general surveillance over
    the management of field offices of the various organizational
    components located on their respective coasts.
      6. Filing of applications and other formal documents. All
    applications and other formal documents required to be filed with
    either the Federal Maritime Board or the Maritime Administration
    shall be filed with the Secretary's Office, Federal Maritime Board.

     NATIONAL SHIPPING AUTHORITY AND ADDITIONAL FUNCTIONS OF MARITIME
                               ADMINISTRATOR
      The following is a statement of the Department of Commerce, 16
    F.R. 2642, 2643, Mar. 23, 1951, amending the statement of such
    Department set out in 16 F.R. 44 to 46, Jan. 3, 1951 (set out as a
    note above):
      The statement of organization and functions of the Federal
    Maritime Board and the Maritime Administration issued in 16 F.R. 44
    [set out as a note above] is amended by the addition of the
    following:
      Establishment of the National Shipping Authority. There is
    established in the Maritime Administration a National Shipping
    Authority, headed by a Director responsible to the Maritime
    Administrator.
      The National Shipping Authority shall perform such functions in
    connection with the formulation and execution of plans and programs
    for the operation, acquisition, and allocation of merchant vessels
    and such other duties as the Maritime Administrator, within the
    scope of his authority, may from time to time direct.
      Functions of the Maritime Administrator. In addition to the
    functions contained in paragraph 5 of 16 F.R. 44, the Maritime
    Administrator shall perform the following functions:
      (a) The functions conferred upon the Secretary of Commerce by
    Public Law 591, 81st Congress, 2d Session [46 U.S.C. note prec. 1,
    883 note; 50 App. U.S.C. 1735 note, 1738, 1744];
      (b) The functions conferred upon the Secretary of Commerce by
    Public Law 763, 81st Congress, 2d Session [46 U.S.C. 1281-1294],
    except that the authority "to find that insurance adequate to the
    needs of the waterborne commerce of the United States cannot be
    obtained on reasonable terms and conditions in companies authorized
    to do an insurance business in a State of the United States" is
    reserved to the Secretary;
      (c) The functions conferred upon the Secretary by Public Law 911,
    81st Congress, 2d Session [act Jan. 6, 1951, ch. 1213, 64 Stat.
    1224];
      (d) The functions conferred upon the Secretary by Reorganization
    Plan No. 21 of 1950 [set out above] to take action with respect to
    the determination of essential trade routes and services or
    subsequent modifications;
      (e) The functions conferred upon the Secretary by Reorganization
    Plan No. 21 of 1950 to establish policies of general application
    for the purchase, acquisition, construction, charter, and sale of
    vessels and for the administration of programs concerning operating
    subsidies, reserve funds and transfers to foreign ownership or
    registry, and charters to foreigners.
      The Maritime Administrator may redelegate to officers and
    employees of the Maritime Administration the performance of
    particular functions herein assigned to the Maritime Administrator.
      Effect on other notices. All orders, regulations, rulings,
    certificates, directives, and other actions heretofore issued or
    taken under the notices appearing at 15 F.R. 8739 and 16 F.R. 1130
    and in effect immediately prior to the effective date of this
    notice shall remain in full force and effect until hereafter
    suspended, amended, or revoked under appropriate authority.
      This notice amends the notice issued in 15 F.R. 3195, "Temporary
    Delegations of Authority under Reorganization Plan No. 21 of 1950."
      Effective date. This notice is effective March 13, 1951.

                         APPOINTMENT OF PERSONNEL                     
      The following is a legal opinion, in part, dated August 29, 1950,
    and prepared by the General Counsel of the Maritime Administration,
    with respect to the authority of the chairman of the Federal
    Maritime Board to make appointments of personnel under the Board
    and the extent of the authority of the Secretary of Commerce under
    Reorg. Plan No. 21 of 1950, set out above, as to such personnel:
      Sec. 103 of Reorganization Plan 21 of 1950 [set out above]
    transferred to the Chairman of the Federal Maritime Board "all
    functions of the Chairman of the United States Maritime Commission
    (including his functions under the provisions of Reorganization
    Plan No. 6 of 1949 [set out above]) with respect to the functions
    transferred to the Board by the provisions of Sections 104 and 105"
    of Plan 21. Section 104 transferred to the Board the regulatory
    functions of the Maritime Commission and Section 105 transferred
    certain of the subsidy functions of the Commission, not including,
    however, the function of administering subsidy contracts.
      Sec. 106 of Plan 21 provides for the status of the Board and of
    the Chairman and their relationship to the Secretary of Commerce. *
    * *.
      In order to fully understand the intent of Plan 21, it is
    necessary to examine the status of the appointing authority of the
    Chairman of the Maritime Commission immediately prior to the
    transfer of functions under Plan 21. As set forth above, Section
    103 of Plan 21 makes specific reference to the authority of the
    Chairman of the Commission under Plan 6 of 1949 as being
    transferred to the Chairman of the Board.
      Reorganization Plan 6 was transmitted by the President to
    Congress on June 20, 1949. Its purpose as stated in the message of
    transmittal [set out in Appendix to Title 5, Government
    Organization and Employees] was "to strengthen the administration
    of the United States Maritime Commission by making the Chairman the
    chief executive and administrative officer of the Commission and
    vesting in him responsibility for the appointment of its personnel
    and the supervision and direction of their activities." (Emphasis
    supplied.)
      Section 2 of Plan 6 transferred from the Commission to the
    Chairman certain functions including the appointment of personnel
    (exclusive of "personnel employed regularly and full time" in the
    offices of other members) with the proviso that the Chairman would
    consult with other members before appointing the heads of major
    administration units. Section 1 of Plan 6 provided that in
    exercising certain functions the Chairman should be guided by
    policies of the Commission. This section significantly excepted
    from such requirement the authority transferred to the Chairman
    under Section 2 including the appointive authority. Thus the
    appointive authority (excluding only personnel in offices of
    Commission members) was exclusively and, except for the proviso
    relating to heads of major units, unconditionally vested in the
    Chairman of the Commission until Plan 21 took effect.
      Plan 21 transferred all the functions of the Commission and of
    the Chairman of the Commission. As stated above, some of these
    functions went to the Federal Maritime Board (Secs. 104, 105).
    Others were transferred to the Chairman of the Board (Sec. 103).
    Functions not otherwise transferred went to the Secretary of
    Commerce (Sec. 204).
      The functions transferred to the Board and to the Chairman relate
    to regulatory authority (to be exercised independently) and subsidy
    functions (to be exercised subject to the guidance of general
    policies established by the Secretary of Commerce). As Section 103
    transferring functions to the Chairman relating to these subjects
    makes specific reference to the authority of the Chairman of the
    Commission under Plan 6, which included the appointment of
    personnel, it appears evident that so much of the appointive power
    as relates to personnel performing these functions passed to the
    Chairman of the Board to be exercised by him independently as to
    personnel performing regulatory functions and subject to the
    injunction of Sec. 106 (to be guided by the policies of the
    Secretary of Commerce) as to personnel performing services in
    connection with the subsidy functions performed by the Board.
      This conclusion is reinforced by reference to a decision of the
    Attorney General to the Secretary of Commerce, dated May 13, 1940,
    construing somewhat similar provisions in a reorganization plan
    transferring to the Department certain functions of the Civil
    Aeronautics Authority [Reorg. Plan No. IV of 1940, Sec. 7, eff.
    June 30, 1940, 5 F.R. 2421, 54 Stat. 1234, set out in the Appendix
    to Title 5, Government Organization and Employees] * * *. Despite
    the specific mention of the personnel functions the Attorney
    General held that the appointive authority was in the Board. This
    decision was based upon reasoning recognizing the practical fact
    that independence in the exercise of the functions of the Board
    could not be achieved if the control of personnel and finances of
    the Board were in the Secretary of Commerce.
      I have reached the conclusion that the appointive authority as to
    personnel engaged in regulatory and certain of the subsidy
    functions is vested in the Chairman, notwithstanding certain facts
    which might tend to indicate a different result.
      Chief among these is the statement contained in the President's
    message transmitting Plan 21, as follows:
      "In making the Chairman of the Federal Maritime Board the
    Maritime Administrator, the plan adopts an arrangement
    substantially similar to that which prevailed during the war, when
    the same individual served as Chairman of the Maritime Commission
    and head of the War Shipping Administration. This arrangement will
    have important advantages. It will facilitate cooperation between
    the Board and the Administration on matters of concern to both.
    Also, it will avoid dividing the personnel of the Maritime
    Commission, since the Chairman of the Board will supervise the
    personnel assisting it in the performance of its functions, as is
    now the case in the Maritime Commission, and in his capacity as
    Administrator he will have charge of the personnel carrying on the
    work of the Maritime Administration. The plan provides for the
    joint operation of the officers and employees under the
    Administrator and Chairman as a single body of personnel. The
    maintenance of a unified staff is essential for efficient and
    economical administration because many of the technical and
    professional personnel, such as ship designers and attorneys, now
    assist the Maritime Commission on problems of subsidy determination
    and also participate in the subsequent administration of subsidy
    agreements and in performing nonsubsidy functions.
      "The inclusion of the new Board in the Department of Commerce
    will permit the use of the administrative services of the
    Department. More important, it will eliminate the necessity of
    splitting the personnel of the Maritime Commission between the
    Department and an outside agency. * * * ".
      A literal reading of portions of this statement might be used as
    a basis for argument that a single appointive authority was
    intended. This meaning cannot be given the statement, however, in
    view of the specific language of the Plan as previously discussed.
    It is more likely that the President had in mind the fact that the
    Plan seems to contemplate a delegation of authority from the
    Secretary to the Chairman-Administrator by providing in Sec. 204
    that "The Secretary of Commerce may from time to time make such
    provisions as he shall deem appropriate authorizing the performance
    by the Maritime Administrator of any function transferred to such
    Secretary by the provisions of this reorganization plan." Sec. 302
    provides that the Chairman-Administrator shall make joint use of
    personnel.
      Another argument against the conclusion stated could be based
    upon the fact that Plan 21 makes specific reference in transferring
    functions to the Board of certain titles and portions of the
    Merchant Marine Act, 1936, as amended [this chapter], without
    making any reference to Sec. 201(e) of that Act [subsec. (e) of
    this section] which is the source of the appointive authority
    formerly vested in the Commission. This argument fails, however,
    when consideration is given to the fact that immediately prior to
    Plan 21 this authority was vested not in the Commission but in the
    Chairman of the Commission under Plan 6 and is included in the
    specific reference to Plan 6.
      It is clear that both Plan 21 and the President's transmittal
    message contemplate the use of personnel to perform dual functions
    for the Board and for the Administrator. It is equally clear that
    the Plan itself does not contain provisions vesting in a single
    appointive authority the power to establish such a group of
    personnel. It is evident, therefore, that the President
    contemplated that this objective be achieved by the Chairman's
    voluntarily utilizing the services of employees appointed under the
    authority of the Secretary to perform services in connection with
    Board functions and, in his capacity as Administrator, utilizing
    the services of employees employed by him under the direct grant of
    authority in the Plan to perform duties assigned to him by the
    Secretary. Thus the Plan, although directing the joint use of
    personnel, intends that result to be accomplished through the use
    of the administrative discretion granted the Chairman-Administrator
    by Section 302 of the Plan to be exercised in the interest of
    economy and efficiency, and does not vest exclusive appointing
    authority either in the Secretary or the Chairman-Administrator.

-End-

-CITE-
    46 USC APPENDIX Sec. 1111a                                  01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER II - CREATION AND FUNCTIONS OF MARITIME AGENCIES

-HEAD-
    Sec. 1111a. Administrative expenses; limitations

-STATUTE-
      After June 30, 1939, the Federal Maritime Commission and the
    Secretary of Transportation shall not incur any obligations for
    administrative expenses except pursuant to an annual appropriation
    specifically therefor or to authority to use appropriations or
    other funds otherwise available therefor.

-SOURCE-
    (June 25, 1938, ch. 681, title I, 52 Stat. 1119; Pub. L. 97-31,
    Sec. 12(59), Aug. 6, 1981, 95 Stat. 158.)

-COD-
                               CODIFICATION                           
      Section was not enacted as part of the Merchant Marine Act, 1936,
    which comprises this chapter.

-MISC1-
                                AMENDMENTS                            
      1981 - Pub. L. 97-31 substituted reference to the Federal
    Maritime Commission and the Secretary of Transportation for
    reference to the United States Maritime Commission. For prior
    transfers of functions of United States Maritime Commission, see
    Transfer of Functions note below.

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      For transfer of functions of United States Maritime Commission,
    see Reorg. Plan No. 6 of 1949, Reorg. Plan No. 21 of 1950, and
    Reorg. Plan No. 7 of 1961, set out under section 1111 of this
    Appendix.

-End-

-CITE-
    46 USC APPENDIX Sec. 1112                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER II - CREATION AND FUNCTIONS OF MARITIME AGENCIES

-HEAD-
    Sec. 1112. Operation of property by Secretary

-STATUTE-
      Notwithstanding any other provision of law, the Secretary of
    Transportation may, in accordance with good business methods and on
    such terms and conditions as he determines to effectuate the policy
    of this chapter, operate or lease any lands, docks, wharves, piers,
    or real property under his control, and all money received from
    such operation or lease shall be available for expenditure by the
    Secretary of Transportation as provided in this chapter. The
    Secretary of Transportation may, upon such terms and conditions as
    he may prescribe in accordance with sound business practice, make
    such extensions and accept such renewals of the notes and other
    evidences of indebtedness hereby transferred, and of the mortgages
    and other contracts securing the same, as he may deem necessary to
    carry out the objects of this chapter.

-SOURCE-
    (June 29, 1936, ch. 858, title II, Sec. 202, 49 Stat. 1986; Aug.
    26, 1937, ch. 822, Sec. 1, 50 Stat. 839; June 23, 1938, ch. 600,
    Sec. 1, 52 Stat. 953; Pub. L. 97-31, Sec. 12(60), Aug. 6, 1981, 95
    Stat. 158.)

-MISC1-
                                AMENDMENTS                            
      1981 - Pub. L. 97-31 substituted "Secretary of Transportation"
    for "Commission", wherever appearing, "he" for "it", and "his" for
    "its", and struck out provision relating to transfer of money,
    etc., to the United States Maritime Commission. For prior transfers
    of functions of the Commission, meaning the United States Maritime
    Commission, see Transfer of Functions note below.
      1938 - Act June 23, 1938, permitted extensions and renewals of
    notes, other evidences of indebtedness, and mortgages.
      1937 - Act Aug. 26, 1937, permitted the operation or leasing of
    lands, docks, wharves, piers or real property.

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      For transfer of functions of United States Maritime Commission,
    see Reorg. Plan No. 6 of 1949, Reorg. Plan No. 21 of 1950, and
    Reorg. Plan No. 7 of 1961, set out under section 1111 of this
    Appendix.

-End-

-CITE-
    46 USC APPENDIX Sec. 1114                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER II - CREATION AND FUNCTIONS OF MARITIME AGENCIES

-HEAD-
    Sec. 1114. Transfer of powers; rules and orders

-STATUTE-
    (a) Transfer of functions, powers, and duties
      All the functions, powers, and duties vested in the former United
    States Shipping Board by the Shipping Act, 1916 [46 App. U.S.C. 801
    et seq.], the Merchant Marine Act, 1920 [46 App. U.S.C. 861 et
    seq.], the Merchant Marine Act, 1928 [46 App. U.S.C. 891 et seq.],
    and amendments to those Acts, and now vested in the Department of
    Commerce pursuant to section 12 of the President's Executive Order
    [No. 6166] of June 10, 1933, are hereby transferred to the Federal
    Maritime Commission and the Secretary of Transportation: Provided,
    however, That after June 29, 1936, no further construction loans
    shall be made under the provisions of section 11 of the Merchant
    Marine Act, 1920, as amended.
    (b) Rules and regulations
      The Commission and the Secretary of Transportation are authorized
    to adopt all necessary rules and regulations to carry out the
    powers, duties, and functions vested in them by this chapter.
    (c) Enforcement of orders; penalties for violations
      The orders issued by the Federal Maritime Commission and the
    Secretary of Transportation in the exercise of the powers
    transferred to them by this subchapter shall be enforced in the
    same manner as heretofore provided by law for enforcement of the
    orders issued by the former United States Shipping Board, and
    violation of such orders shall subject the person or corporation
    guilty of such violation to the same penalties or punishment as
    heretofore provided for violation of the orders of said Board.

-SOURCE-
    (June 29, 1936, ch. 858, title II, Sec. 204, 49 Stat. 1987; June
    23, 1938, ch. 600, Sec. 41, 52 Stat. 964; Pub. L. 97-31, Sec.
    12(61), Aug. 6, 1981, 95 Stat. 158; Pub. L. 104-88, title III, Sec.
    335(c)(1), Dec. 29, 1995, 109 Stat. 954.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Shipping Act, 1916, referred to in subsec. (a), is act Sept.
    7, 1916, ch. 451, 39 Stat. 728, as amended, which is classified
    generally to chapter 23 (Sec. 801 et seq.) of this Appendix. For
    complete classification of this Act to the Code, see section 842 of
    this Appendix and Tables.
      The Merchant Marine Act, 1920, referred to in subsec. (a), is act
    June 5, 1920, ch. 250, 41 Stat. 988, as amended, which (except for
    sections repealed or reenacted in Title 46, Shipping) is classified
    principally to chapter 24 (Sec. 861 et seq.) of this Appendix. For
    complete classification of this Act to the Code, see section 889 of
    this Appendix and Tables.
      The Merchant Marine Act, 1928, referred to in subsec. (a), is act
    May 22, 1928, ch. 675, 45 Stat. 689, as amended, which is
    classified principally to chapter 24A (Sec. 891 et seq.) of this
    Appendix. For complete classification of this Act to the Code, see
    section 891x of this Appendix and Tables.
      Executive Order No. 6166 of June 10, 1933, referred to in subsec.
    (a), is set out under section 901 of Title 5, Government
    Organization and Employees.

-MISC1-
                                AMENDMENTS                            
      1995 - Subsec. (a). Pub. L. 104-88 struck out "the Intercoastal
    Shipping Act, 1933," after "the Merchant Marine Act, 1928,".
      1981 - Subsec. (a). Pub. L. 97-31, Sec. 12(61)(A), substituted
    "Federal Maritime Commission and the Secretary of Transportation"
    for "United States Maritime Commission". For prior transfers of
    functions of United States Maritime Commission, see Transfer of
    Functions note below.
      Subsec. (b). Pub. L. 97-31, Sec. 12(61)(B)-(D), inserted "and the
    Secretary of Transportation" after "Commission" and substituted
    "are authorized" for "is authorized" and "vested in them" for
    "vested in it". For prior transfers of functions of the Commission,
    meaning the United States Maritime Commission, see Transfer of
    Functions note below.
      Subsec. (c). Pub. L. 97-31, Sec. 12(61)(A), (D), substituted
    "Federal Maritime Commission and the Secretary of Transportation"
    for "United States Maritime Commission" and "transferred to them"
    for "transferred to it". For prior transfers of functions of United
    States Maritime Commission, see Transfer of Functions note below.
      1938 - Subsec. (b). Act June 23, 1938, struck out provisions
    which authorized the President to transfer to the Interstate
    Commerce Commission any or all regulatory powers, duties and
    functions of the United States Maritime Commission.

                     EFFECTIVE DATE OF 1995 AMENDMENT                 
      Amendment by Pub. L. 104-88 effective Jan. 1, 1996, see section 2
    of Pub. L. 104-88, set out as an Effective Date note under section
    701 of Title 49, Transportation.

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      For transfer of functions of United States Maritime Commission,
    see Reorg. Plan No. 21 of 1950 and Reorg. Plan No. 7 of 1961, set
    out under section 1111 of this Appendix.

-End-

-CITE-
    46 USC APPENDIX Sec. 1115                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER II - CREATION AND FUNCTIONS OF MARITIME AGENCIES

-HEAD-
    Sec. 1115. Discrimination at ports by carriers by water against
      other carriers

-STATUTE-
      Without limiting the power and authority otherwise vested in the
    Federal Maritime Commission and the Secretary of Transportation, it
    shall be unlawful for any common carrier by water, either directly
    or indirectly, through the medium of an agreement, conference,
    association, understanding, or otherwise, to prevent or attempt to
    prevent any other such carrier from serving any port designed for
    the accommodation of ocean-going vessels located on any improvement
    project authorized by the Congress or through it by any other
    agency of the Federal Government, lying within the continental
    limits of the United States, at the same rates which it charges at
    the nearest port already regularly served by it.

-SOURCE-
    (June 29, 1936, ch. 858, title II, Sec. 205, 49 Stat. 1987; Pub. L.
    97-31, Sec. 12(62), Aug. 6, 1981, 95 Stat. 159.)

-MISC1-
                                AMENDMENTS                            
      1981 - Pub. L. 97-31 substituted "Federal Maritime Commission and
    the Secretary of Transportation" for "Commission". For prior
    transfers of functions of the Commission, meaning the United States
    Maritime Commission, see Transfer of Functions note below.

                                  REPEALS                              
      For effect of subtitle IV (Sec. 10101 et seq.) of Title 49,
    Transportation, see note set out preceding section 801 of this
    Appendix.

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      For transfer of functions of United States Maritime Commission,
    see Reorg. Plan No. 6 of 1949, Reorg. Plan No. 21 of 1950, and
    Reorg. Plan No. 7 of 1961, set out under section 1111 of this
    Appendix.

-End-

-CITE-
    46 USC APPENDIX Sec. 1116                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER II - CREATION AND FUNCTIONS OF MARITIME AGENCIES

-HEAD-
    Sec. 1116. Construction fund

-STATUTE-
      All sums of money now in the construction loan fund created by
    section 11 (!1) of the Merchant Marine Act, 1920, as amended,
    together with the proceeds of all debts, accounts, choses in
    action, and the proceeds of all notes, mortgages, and other
    evidences of indebtedness, hereby transferred to the Department of
    Transportation, and all of the proceeds of sales of ships and
    surplus property heretofore or hereafter made, including proceeds
    of notes or other evidences of debt taken therefor and the interest
    thereon, and, notwithstanding any other provision of law, all money
    representing amounts of unclaimed wages, salvage awards and
    miscellaneous unclaimed items carried as liabilities on the books
    of the former United States Shipping Board Merchant Fleet
    Corporation and all money heretofore or hereafter received from the
    operation or leasing of lands, docks, wharves, piers, or real
    property shall be deposited in the Treasury of the United States
    and there maintained as a revolving fund, herein designated as the
    construction fund, and shall be available for expenditure by the
    Secretary of Transportation in carrying out the provisions of this
    chapter. All moneys received by the Department of Transportation
    under the provisions of this chapter shall be deposited in its
    construction fund, and all disbursements made by the Secretary of
    Transportation under authority of this chapter shall be paid out of
    said fund, and, notwithstanding any other provision of law, all
    disbursements applicable to the money referred to in this section
    may be made by the Secretary of Transportation out of said fund.
    Further appropriations by Congress to replenish said fund are
    authorized.

-SOURCE-
    (June 29, 1936, ch. 858, title II, Sec. 206, 49 Stat. 1987; Aug.
    26, 1937, ch. 822, Sec. 2, 50 Stat. 839; Pub. L. 97-31, Sec.
    12(63), Aug. 6, 1981, 95 Stat. 159.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 11 of the Merchant Marine Act, 1920, as amended, referred
    to in text, was classified to section 870 of former Title 46,
    Shipping, and was repealed by act June 29, 1936, ch. 858, title IX,
    Sec. 903(b), 49 Stat. 2016.

-MISC1-
                                AMENDMENTS                            
      1981 - Pub. L. 97-31 substituted "Department of Transportation"
    for "Commission" in two places and "Secretary of Transportation"
    for "Commission" in three places. For prior transfers of functions
    of the Commission, meaning the United States Maritime Commission,
    see Transfer of Functions note below.
      1937 - Act Aug. 26, 1937, amended section generally.

                     EFFECTIVE DATE OF 1937 AMENDMENT                 
      Amendment effective as of June 29, 1936, see section 4 of act
    Aug. 26, 1937.

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      For transfer of functions of United States Maritime Commission,
    see Reorg. Plan No. 6 of 1949, Reorg. Plan No. 21 of 1950, and
    Reorg. Plan No. 7 of 1961, set out under section 1111 of this
    Appendix.

-MISC2-
                     LIMITATIONS ON CONSTRUCTION FUND                 
      Acts July 30, 1947, ch. 359, title I, Sec. 101, 61 Stat. 603, and
    June 30, 1948, ch. 775, Sec. 101, 62 Stat. 1199, which were the
    Independent Offices Appropriation Act, 1948, and The Supplemental
    Independent Offices Appropriation Act, 1949, respectively, placed
    limitations on obligations from the construction fund established
    by this section.

                   REDUCTION OF CONTRACT AUTHORIZATIONS               
      Act May 29, 1945, ch. 136, 59 Stat. 226, authorized the transfer
    out of the unexpended balance of appropriations made to the
    Maritime Commission under the head "Construction fund, United
    States Maritime Commission Act, June 24, 1936, revolving fund" up
    until May 29, 1945, of the sum of $3,100,000,000 to be carried to
    the surplus fund and be covered into the Treasury and reduced the
    contract authorization for ship construction and facilities
    incident by $4,265,000,000.

                         ADDITIONAL APPROPRIATIONS                     
      Act Aug. 25, 1941, ch. 409, title III, 55 Stat. 682, appropriated
    an amount not to exceed $1,296,650,000 to enable the Commission to
    enter into further contracts for the construction of vessels,
    production and procurement of parts, equipment, plants, etc.

-FOOTNOTE-
    (!1) See References in Text note below.

-End-

-CITE-
    46 USC APPENDIX Sec. 1116a                                  01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER II - CREATION AND FUNCTIONS OF MARITIME AGENCIES

-HEAD-
    Sec. 1116a. Application to obligations against emergency ship
      construction fund

-STATUTE-
      On and after March 22, 1947, the construction fund established by
    section 1116 of this Appendix shall be available for the payment of
    obligations previously incurred against the emergency ship
    construction fund.

-SOURCE-
    (Mar. 22, 1947, ch. 20, title II, 61 Stat. 18; 1950 Reorg. Plan No.
    21, Sec. 306, eff. May 24, 1950, 15 F.R. 3178, 64 Stat. 1277.)

-COD-
                               CODIFICATION                           
      Words "United States Maritime Commission" preceding "construction
    fund" omitted and words "established by section 1116 of this
    Appendix" inserted following "construction fund" on authority of
    Reorg. Plan No. 21 of 1950, set out under section 1111 of this
    Appendix.
      Section was enacted as part of act Mar. 22, 1947, popularly known
    as the Urgent Deficiency Appropriation Act, 1947, and not as part
    of the Merchant Marine Act, 1936, which comprises this chapter.

-End-

-CITE-
    46 USC APPENDIX Sec. 1117                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER II - CREATION AND FUNCTIONS OF MARITIME AGENCIES

-HEAD-
    Sec. 1117. Power to contract; audit of accounts; reports of
      Comptroller General

-STATUTE-
      The Federal Maritime Commission and the Secretary of
    Transportation may enter into such contracts, upon behalf of the
    United States, and may make such disbursements as may, in its or
    his discretion, be necessary to carry on the activities authorized
    by this chapter, or to protect, preserve, or improve the collateral
    held by the Commission or Secretary to secure indebtedness, in the
    same manner that a private corporation may contract within the
    scope of the authority conferred by its charter. All the
    Commission's and Secretary's financial transactions shall be
    audited in the Government Accountability Office according to
    approved commercial practice as provided in the Act of March 20,
    1922 (42 Stat. 444): Provided, That it shall be recognized that,
    because of the business activities authorized by this chapter, the
    accounting officers shall allow credit for all expenditures shown
    to be necessary because of the nature of such authorized
    activities, notwithstanding any existing statutory provision to the
    contrary. The Comptroller General shall report annually or oftener
    to Congress any departure by the Commission or Secretary from the
    provisions of this chapter.

-SOURCE-
    (June 29, 1936, ch. 858, title II, Sec. 207, 49 Stat. 1988; June
    23, 1938, ch. 600, Sec. 2, 52 Stat. 954; Pub. L. 97-31, Sec.
    12(64), Aug. 6, 1981, 95 Stat. 159; Pub. L. 108-271, Sec. 8(b),
    July 7, 2004, 118 Stat. 814.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Act of March 20, 1922, ch. 104, 42 Stat. 444, referred to in
    text, is not classified to the Code.

-MISC1-
                                AMENDMENTS                            
      2004 - Pub. L. 108-271 substituted "Government Accountability
    Office" for "General Accounting Office".
      1981 - Pub. L. 97-31 substituted "Federal Maritime Commission and
    the Secretary of Transportation" for "Commission" first time it
    appeared, and inserted "or his" after "its", "or Secretary" after
    "Commission" and "and Secretary's" after "Commission's". For prior
    transfers of functions of the Commission, meaning the United States
    Maritime Commission, see Transfer of Functions note below.
      1938 - Act June 23, 1938, authorized disbursements, and provided
    for the protection, preservation, or improvement of collateral held
    to secure indebtedness.

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      For transfer of functions of United States Maritime Commission,
    see Reorg. Plan No. 6 of 1949, Reorg. Plan No. 21 of 1950, and
    Reorg. Plan No. 7 of 1961, set out under section 1111 of this
    Appendix.

-End-

-CITE-
    46 USC APPENDIX Sec. 1118                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER II - CREATION AND FUNCTIONS OF MARITIME AGENCIES

-HEAD-
    Sec. 1118. Reports to Congress

-STATUTE-
      The Federal Maritime Commission and the Secretary of
    Transportation shall, by April 1 each year, make a report to
    Congress, which shall include the results of its or his
    investigations, a summary of its or his transactions, its or his
    recommendations for legislation, a statement of all receipts under
    this chapter, and the purposes for which all expenditures were
    made.

-SOURCE-
    (June 29, 1936, ch. 858, title II, Sec. 208, 49 Stat. 1988; Pub. L.
    94-273, Sec. 36, Apr. 21, 1976, 90 Stat. 380; Pub. L. 97-31, Sec.
    12(65), Aug. 6, 1981, 95 Stat. 159.)

-MISC1-
                                AMENDMENTS                            
      1981 - Pub. L. 97-31 substituted "Federal Maritime Commission and
    the Secretary of Transportation" for "Commission" and inserted "or
    his" after "its" in three places. For prior transfers of functions
    of the Commission, meaning the United States Maritime Commission,
    see Transfer of Functions note below.
      1976 - Pub. L. 94-273 substituted "by April 1 each year" for "at
    the beginning of each regular session".

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      For transfer of functions of United States Maritime Commission,
    see Reorg. Plan No. 6 of 1949, Reorg. Plan No. 21 of 1950, and
    Reorg. Plan No. 7 of 1961, set out under section 1111 of this
    Appendix.

-MISC2-
               REPORTING OF ADMINISTERED AND OVERSIGHT FUNDS           
      Pub. L. 106-398, Sec. 1 [div. C, title XXXV, Sec. 3506], Oct. 30,
    2000, 114 Stat. 1654, 1654A-494, provided that: "The Maritime
    Administration, in its annual report to the Congress under section
    208 of the Merchant Marine Act, 1936 (46 U.S.C. App. 1118), and in
    its annual budget estimate submitted to the Congress, shall state
    separately the amount, source, intended use, and nature of any
    funds (other than funds appropriated to the Administration or to
    the Secretary of Transportation for use by the Administration)
    administered, or subject to oversight, by the Administration."

-End-

-CITE-
    46 USC APPENDIX Sec. 1119                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER II - CREATION AND FUNCTIONS OF MARITIME AGENCIES

-HEAD-
    Sec. 1119. Authorization of appropriations

-STATUTE-
      (a) Except as provided in subsection (b) of this section, there
    are authorized to be appropriated such sums as may be necessary to
    carry out the provisions of this chapter.
      (b) Notwithstanding any other provision of this chapter or any
    other law, there are authorized to be appropriated after December
    31, 1967, for the use of the Maritime Administration for - 
        (1) acquisition, construction, or reconstruction of vessels;
        (2) construction-differential subsidy incident to the
      construction, reconstruction, or reconditioning of ships;
        (3) cost of national defense features;
        (4) payment of obligations incurred for operating-differential
      subsidy;
        (5) expenses necessary for research and development activities
      (including reimbursement of the Vessel Operations Revolving Fund
      for losses resulting from expenses of experimental ship
      operations);
        (6) reserve fleet expenses;
        (7) maritime training at the Merchant Marine Academy at Kings
      Point, New York;
        (8) financial assistance to State maritime academies under
      section 1295c of this Appendix;
        (9) the Vessel Operations Revolving Fund;
        (10) (!1) expenses necessary for additional training provided
      under section 1295d of this Appendix;

        (10) (!1) expenses necessary to carry out subchapter XIII of
      this chapter; and
        (11) other operations and training expenses related to the
      development of waterborne transportation systems, the use of
      waterborne transportation systems, or general administration;

    only such sums as the Congress may specifically authorize by law:
    Provided, however, That the Congress finds and declares that the
    national policy set forth in section 1101 of this Appendix requires
    that there should be authorized and appropriated for fiscal years
    1971 through 1980 such sums as may be necessary to construct 300
    ships of such sizes, types and designs as the Secretary of
    Transportation may consider best suited to carry out the purposes
    and policy of this chapter.

-SOURCE-
    (June 29, 1936, ch. 858, title II, Sec. 209, 49 Stat. 1988; Aug.
    26, 1937, ch. 822, Sec. 3, 50 Stat. 839; Pub. L. 90-81, Sept. 5,
    1967, 81 Stat. 193; Pub. L. 91-469, Sec. 2, Oct. 21, 1970, 84 Stat.
    1018; Pub. L. 95-173, Sec. 6(a), Nov. 12, 1977, 91 Stat. 1360; Pub.
    L. 96-387, Sec. 4, Oct. 7, 1980, 94 Stat. 1546; Pub. L. 96-453,
    Sec. 3(a), Oct. 15, 1980, 94 Stat. 2008; Pub. L. 97-31, Sec.
    12(66), Aug. 6, 1981, 95 Stat. 159.)

-COD-
                               CODIFICATION                           
      Subsec. (c) of this section, which related to availability, for
    all objects of expenditure under this chapter, of all
    appropriations and unexpended balances of appropriations in
    connection with then existing ocean-mail contracts entered into
    under sections 891e to 891r of former Title 46, Shipping, in
    connection with which the powers and duties with respect thereto
    had been transferred from the Postmaster General to the United
    States Maritime Commission by section 1144 of this Appendix, was
    omitted.
      Subsec. (d) of this section, which made funds available under
    former subsection (b) available for expenditures authorized by
    former United States Maritime Commission under former provisions in
    section 1111 of this Appendix, as soon as a majority of the members
    of the United States Maritime Commission had taken the oath of
    office, notwithstanding section 1246 of this Appendix, was omitted.

-MISC1-
                                AMENDMENTS                            
      1981 - Subsec. (b). Pub. L. 97-31 substituted "Secretary of
    Transportation" for "Secretary of Commerce".
      1980 - Subsec. (b). Pub. L. 96-453, which directed that pars. (7)
    and (9) be amended, that par. (10), relating to other operations
    and training expenses, be redesignated as (11), and that a par.
    (10), relating to expenses necessary to carry out subchapter XIII
    of this chapter, be added, was executed by amending pars. (8) and
    (10), set out first, and adding a par. (10), set out second, as the
    probable intent of Congress, in view of the prior redesignation of
    par. (7) as (8), par. (9) as (10), set out first and (10) as (11)
    by Pub. L. 96-387. The amendment substituted in par. (8) "State
    maritime academies under section 1295c of this Appendix" for "State
    Marine Schools" and in par. (10) "for additional training provided
    under section 1295d" for "for extension and correspondence courses
    authorized under section 1126(c)" and added a par. (10), relating
    to expenses necessary to carry out subchapter XIII of this chapter.
      Pub. L. 96-387 struck out in par. (2) "and cost of national
    defense features" after "subsidy", added par. (3), and redesignated
    former pars. (3) to (10) as (4) to (11), respectively.
      1977 - Subsec. (b). Pub. L. 95-173 added pars. (9) and (10).
      1970 - Subsec. (b). Pub. L. 91-469 authorized appropriations for
    construction of 300 ships for fiscal years 1971 through 1980.
      1967 - Subsec. (a). Pub. L. 90-81 inserted "Except as provided in
    subsection (b) of this section" at beginning of subsec.
      Subsec. (b). Pub. L. 90-81 added subsec. (b). A prior subsec.
    (b), making available to the United States Maritime Commission all
    appropriations and unexpended balances of the United States
    Shipping Board Bureau and the United States Shipping Board Merchant
    Fleet Corporation, had been eliminated as executed and obsolete.

                     EFFECTIVE DATE OF 1980 AMENDMENT                 
      Amendment by Pub. L. 96-453 effective Oct. 1, 1981, see section 4
    of Pub. L. 96-453, set out as an Effective Date note under section
    1295 of this Appendix.

                     EFFECTIVE DATE OF 1977 AMENDMENT                 
      Section 6(b) of Pub. L. 95-173 provided that: "The amendment made
    by subsection (a) of this section [amending this section] shall be
    effective for fiscal years beginning after September 30, 1978."

-FOOTNOTE-
    (!1) See 1980 Amendment note below.

-End-

-CITE-
    46 USC APPENDIX Sec. 1120                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER II - CREATION AND FUNCTIONS OF MARITIME AGENCIES

-HEAD-
    Sec. 1120. Survey of existing merchant marine for creation of
      adequate American-owned fleet

-STATUTE-
      It shall be the duty of the Secretary of Transportation to make a
    survey of the American merchant marine, as it now exists, to
    determine what additions and replacements are required to carry
    forward the national policy declared in section 1101 of this
    Appendix, and the Secretary of Transportation is directed to study,
    perfect, and adopt a long-range program for replacements and
    additions to the American merchant marine so that as soon as
    practicable the following objectives may be accomplished:
      First, the creation of an adequate and well-balanced merchant
    fleet, including vessels of all types, to provide shipping service
    essential for maintaining the flow of the foreign commerce of the
    United States, the vessels in such fleet to be so designed as to be
    readily and quickly convertible into transport and supply vessels
    in a time of national emergency. In planning the development of
    such a fleet the Secretary of Transportation is directed to
    cooperate closely with the Navy Department as to national-defense
    needs and the possible speedy adaptation of the merchant fleet to
    national-defense requirements.
      Second, the ownership and the operation of such a merchant fleet
    by citizens of the United States insofar as may be practicable.
      Third, the planning of vessels designed to afford the best and
    most complete protection for passengers and crew against fire and
    all marine perils.
      Fourth, the creation and maintenance of efficient shipbuilding
    and repair capacity in the United States with adequate numbers of
    skilled personnel to provide an adequate mobilization base.

-SOURCE-
    (June 29, 1936, ch. 858, title II, Sec. 210, 49 Stat. 1989; Pub. L.
    91-469, Secs. 3, 35(a), Oct. 21, 1970, 84 Stat. 1018, 1035; Pub. L.
    97-31, Sec. 12(67), Aug. 6, 1981, 95 Stat. 159.)

-MISC1-
                                AMENDMENTS                            
      1981 - Pub. L. 97-31 substituted "Secretary of Transportation"
    for "Secretary of Commerce" wherever appearing.
      1970 - Pub. L. 91-469, Sec. 35(a), substituted "Secretary of
    Commerce" for "Commission", twice in introductory par. and once in
    par. "First".
      Par. First. Pub. L. 91-469, Sec. 3(1), struck out "on all routes"
    after "shipping service".
      Par. Fourth. Pub. L. 91-469, Sec. 3(2), added par. "Fourth".

                 COMMISSION ON MERCHANT MARINE AND DEFENSE             
      Pub. L. 98-525, title XV, Sec. 1536, Oct. 19, 1984, 98 Stat.
    2633, as amended by Pub. L. 99-145, title XIV, Sec. 1431, Nov. 8,
    1985, 99 Stat. 754; Pub. L. 99-426, Sec. 1, Sept. 30, 1986, 100
    Stat. 979, provided that:
      "(a) There is hereby established a commission to be known as the
    Commission on Merchant Marine and Defense (hereinafter in this
    section referred to as the 'Commission').
      "(b) The Commission shall study problems relating to
    transportation of cargo and personnel for national defense purposes
    in time of war or national emergency, the capability of the United
    States merchant marine to meet the need for such transportation,
    and the adequacy of the shipbuilding mobilization base of the
    United States to meet the needs of naval and merchant ship
    construction in time of war or national emergency. Based on the
    results of the study, the Commission shall make such specific
    recommendations, including recommendations for legislative action,
    action by the executive branch, and action by the private sector,
    as the Commission considers appropriate to foster and maintain a
    United States merchant marine capable of meeting national security
    requirements. The recommendations of the Commission shall be
    provided in the reports of the Commission due 12 months after the
    date on which sufficient members of the Commission to constitute a
    quorum have been appointed and 24 months after such date, under
    subsection (g).
      "(c)(1) The Commission shall be composed of seven members, as
    follows:
        "(A) The Secretary of the Navy (or his delegate), who shall be
      the chairman of the Commission.
        "(B) The Administrator of the Maritime Administration (or his
      delegate).
        "(C) Five members appointed by the President, by and with the
      advice and consent of the Senate, from among individuals of
      recognized stature and distinction who by reason of their
      background, experience, and knowledge in the fields of merchant
      ship operations, shipbuilding and its supporting industrial base,
      maritime labor, and defense matters are particularly suited to
      serve on the Commission.
      "(2) A vacancy in the Commission shall be filled in the manner in
    which the original appointment was made. Appointments may be made
    under paragraph (1)(C) without regard to section 5311(b) of title
    5, United States Code. Members appointed under such paragraph shall
    be appointed for the life of the Commission.
      "(3) Four members of the Commission shall constitute a quorum,
    but a lesser number may hold hearings. The Commission shall meet at
    the call of the chairman.
      "(d)(1) Members of the Commission appointed under subsection
    (c)(1)(C) may each be paid at a rate equal to the daily equivalent
    of the rate of basic pay payable for level IV of the Executive
    Schedule for each day (including travel time) during which they are
    engaged in the actual performance of the business of the
    Commission. Other members of the Commission shall receive no
    additional pay, allowances, or benefits by reason of their service
    on the Commission.
      "(2) A member of the Commission appointed under subsection
    (c)(1)(C) (who is not otherwise employed by the Federal Government)
    shall not be considered to be a Federal employee, except for the
    purposes of - 
        "(A) chapter 81 of title 5, United States Code, relating to
      compensation for work-related injuries; and
        "(B) chapter 171 of title 28, United States Code, relating to
      tort claims.
      "(e)(1) The Commission may (without regard to section 5311(b) of
    title 5, United States Code) appoint an executive director, who
    shall be paid at a rate not to exceed the rate of basic pay payable
    for level IV of the Executive Schedule.
      "(2) The Commission may appoint such additional staff as it
    considers appropriate. Such personnel shall be paid at a rate not
    to exceed the rate of basic pay payable for grade GS-18 of the
    General Schedule under section 5332 of title 5, United States Code.
      "(3) The executive director and staff of the Commission may be
    appointed without regard to the provisions of title 5, United
    States Code, governing appointments in the executive branch and may
    be paid without regard to the provisions of chapter 51 and
    subchapter III of chapter 53 of such title relating to
    classification and General Schedule pay rates.
      "(4) The Commission may procure temporary and intermittent
    services under section 3109(b) of title 5, United States Code.
      "(f)(1) The Secretary of the Navy and the Administrator of the
    Maritime Administration may detail personnel under their
    jurisdiction to the Commission to assist the Commission in carrying
    out its duties under this section.
      "(2) The Secretary of the Navy and the Administrator of the
    Maritime Administration may provide to the Commission such
    administrative support services as the Commission may require.
      "(g) Not later than nine months after the date on which
    sufficient members of the Commission to constitute a quorum have
    been appointed and not later than 21 months after such date, the
    Commission shall submit to the President and to Congress a report
    containing its findings of fact and its conclusions. Not later than
    12 months after such date and not later than 24 months after such
    date, the Commission, based upon those findings and conclusions,
    shall prepare a report containing the recommendations of the
    Commission as specified in subsection (b) and shall submit the
    report to the President and Congress. Each such report shall be
    prepared without any prior review or approval by any official of
    the executive branch (other than the members and staff of the
    Commission).
      "(h) The Commission shall cease to exist 90 days after the date
    on which the final report of the Commission under subsection (g) is
    submitted to the President and the Congress.
      "(i) There is authorized to be appropriated for fiscal years
    1985, 1986, and 1987, a total of $1,500,000 to carry out this
    section. Any amount appropriated under this subsection shall remain
    available until 36 months after the date on which sufficient
    members of the Commission to constitute a quorum have been
    appointed."

-End-

-CITE-
    46 USC APPENDIX Sec. 1121                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER II - CREATION AND FUNCTIONS OF MARITIME AGENCIES

-HEAD-
    Sec. 1121. Investigations, studies, records, etc.

-STATUTE-
      The Secretary of Transportation is authorized and directed to
    investigate, determine, and keep current records of - 
    (a) Suitable ocean routes and lines to foreign ports; vessels and
      costs of operation
      The ocean services, routes, and lines from ports in the United
    States, or in a Territory, district, or possession thereof, to
    foreign markets, which are, or may be, determined by the Secretary
    of Transportation to be essential for the promotion, development,
    expansion, and maintenance of the foreign commerce of the United
    States, and in reaching his determination the Secretary of
    Transportation shall consider and give due weight to the cost of
    maintaining each of such steamship lines, the probability that any
    such line cannot be maintained except at a heavy loss
    disproportionate to the benefit accruing to foreign trade, the
    number of sailings and types of vessels that should be employed in
    such lines, and any other facts and conditions that a prudent
    business man would consider when dealing with his own business,
    with the added consideration, however, of the intangible benefit
    the maintenance of any such line may afford to the foreign commerce
    of the United States, to the national defense, and to other
    national requirements;
    (b) Bulk cargo carrying services
      The bulk cargo carrying services that should, for the promotion,
    development, expansion, and maintenance of the foreign commerce of
    the United States and for the national defense or other national
    requirements be provided by United States-flag vessels whether or
    not operating on particular services, routes, or lines;
    (c) Vessels required in proposed routes
      The type, size, speed, method of propulsion, and other
    requirements of the vessels, including express-liner or super-liner
    vessels, which should be employed in such services or on such
    routes or lines, and the frequency and regularity of the sailings
    of such vessels, with a view to furnishing adequate, regular,
    certain, and permanent service, or which should be employed to
    provide the bulk cargo carrying services necessary to the
    promotion, maintenance, and expansion of the foreign commerce of
    the United States and its national defense or other national
    requirements whether or not such vessels operate on a particular
    service, route, or line;
    (d) Cost of construction in United States and abroad
      The relative cost of construction of comparable vessels in the
    United States and in foreign countries;
    (e) Relative cost of operation under laws of United States and
      foreign countries
      The relative cost of marine insurance, maintenance, repairs,
    wages and subsistence of officers and crews, and all other items of
    expense, in the operation of comparable vessels under the laws,
    rules, and regulations of the United States and under those of the
    foreign countries whose vessels are substantial competitors of any
    such American vessel;
    (f) Foreign subsidies
      The extent and character of the governmental aid and subsidies
    granted by foreign governments to their merchant marine;
    (g) Shipyards
      The number, location, and efficiency of the shipyards existing on
    June 29, 1936, or thereafter built in the United States;
    (h) Laws applicable to aircraft
      To investigate and determine what provisions of this chapter and
    other Acts relating to shipping should be made applicable to
    aircraft engaged in foreign commerce in order to further the policy
    expressed in this chapter, and to recommend appropriate legislation
    to this end;
    (i) Transportation to foreign ports of cotton, coal, lumber, and
      cement
      The advisability of enactment of suitable legislation authorizing
    the Secretary of Transportation in an economic or commercial
    emergency, to aid the farmers and cotton, coal, lumber, and cement
    producers in any section of the United States in the transportation
    and landing of their products in any foreign port, which products
    can be carried in dry-cargo vessels by reducing rates, by supplying
    additional tonnage to any American operator, or by operation of
    vessels directly by the Secretary of Transportation, until such
    time as the Secretary of Transportation shall deem such special
    rate reduction and operation unnecessary for the benefit of the
    American farmers and such producers; and
    (j) New designs of vessels; intercoastal and inland water
      transportation
      New designs, new methods of construction, and new types of
    equipment for vessels; the possibilities of promoting the carrying
    of American foreign trade in American vessels; and intercoastal and
    inland water transportation, including their relation to
    transportation by land and air.

-SOURCE-
    (June 29, 1936, ch. 858, title II, Sec. 211, 49 Stat. 1989; Pub. L.
    91-469, Secs. 4, 5, 35(a), (b), Oct. 21, 1970, 84 Stat. 1018, 1035;
    Pub. L. 97-31, Sec. 12(67), Aug. 6, 1981, 95 Stat. 159.)

-MISC1-
                                AMENDMENTS                            
      1981 - Pub. L. 97-31 in introductory text and subsecs. (a) and
    (i) substituted "Secretary of Transportation" for "Secretary of
    Commerce" wherever appearing.
      1970 - Pub. L. 91-469, Sec. 35(a), substituted "Secretary of
    Commerce" for "Commission", once in introductory par., twice in
    subsec. (a), and thrice in subsec. (i).
      Subsec. (a). Pub. L. 91-469, Secs. 4(1), 35(b), required
    consideration of the benefit the maintenance of any steamship line
    may afford to other national requirements and substituted "his" for
    "its" before "determination", respectively.
      Subsec. (b). Pub. L. 91-469, Sec. 4(3), added subsec. (b). Former
    subsec. (b) redesignated (c).
      Subsec. (c). Pub. L. 91-649, Sec. 4(2), (4), (5), redesignated
    former subsec. (b) as (c), inserted "method of propulsion" after
    "speed", and required that the various requirements of the vessels
    should be employed to provide bulk cargo carrying services,
    necessary to the promotion, maintenance, and expansion of the
    foreign commerce of the United States and its national defense or
    other national requirements whether or not such vessels operate on
    a particular service, route, or line, respectively. Former subsec.
    (c) redesignated (d).
      Subsec. (d). Pub. L. 91-469, Sec. 4(2), redesignated former
    subsec. (c) as (d). Former subsec. (d) redesignated (e).
      Subsec. (e). Pub. L. 91-469, Secs. 4(2), 5, redesignated former
    subsec. (d) as (e) and struck out "in particular services, routes,
    and lines" after "comparable vessels" and substituted "American
    vessel" for "American service route, or line", respectively. Former
    subsec. (e) redesignated (f).
      Subsecs. (f) to (j). Pub. L. 91-469, Sec. 4(2), redesignated
    former subsecs. (e) to (i) as (f) to (j), respectively.

-End-

-CITE-
    46 USC APPENDIX Sec. 1121-1                                 01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER II - CREATION AND FUNCTIONS OF MARITIME AGENCIES

-HEAD-
    Sec. 1121-1. Priority loading for vessels engaged in coastwise
      transportation of coal; exception, report to Congress

-STATUTE-
      Notwithstanding any other provisions of law, any vessel engaged
    in the coastwise transportation of coal produced in the United
    States, from a port in the United States to another port in the
    United States, shall have the priority to load at any such ports
    ahead of any waiting vessels engaged in the export trade of coal
    produced in the United States: Provided, That, the Secretary of
    Transportation may, if he determines that it is in the national
    interest, eliminate priority loading, as provided herein, at any
    such port or ports, and to report such action to the Congress
    within 30 days.

-SOURCE-
    (Pub. L. 96-387, Sec. 5, Oct. 7, 1980, 94 Stat. 1546; Pub. L. 97-
    31, Sec. 12(68), Aug. 6, 1981, 95 Stat. 159; Pub. L. 99-662, title
    IX, Sec. 947, Nov. 17, 1986, 100 Stat. 4200.)

-COD-
                               CODIFICATION                           
      Section was not enacted as part of the Merchant Marine Act, 1936,
    which comprises this chapter.

-MISC1-
                                AMENDMENTS                            
      1986 - Pub. L. 99-662 struck out "until June 30, 1987," after
    "shall".
      1981 - Pub. L. 97-31 substituted "Secretary of Transportation"
    for "Secretary of Commerce".

-End-

-CITE-
    46 USC APPENDIX Sec. 1121-2                                 01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER II - CREATION AND FUNCTIONS OF MARITIME AGENCIES

-HEAD-
    Sec. 1121-2. National Maritime Enhancement Institutes

-STATUTE-
    (a) Designation by Secretary of Transportation
      The Secretary of Transportation may designate National Maritime
    Enhancement Institutes.
    (b) Activities
      Activities undertaken by such an Institute may include - 
        (1) conducting research concerning methods for improving the
      performance of maritime industries;
        (2) enhancing the competitiveness of domestic maritime
      industries in international trade;
        (3) forecasting trends in maritime trade;
        (4) assessing technological advancements;
        (5) developing management initiatives and training;
        (6) analyzing economic and operational impacts of regulatory
      policies and international negotiations or agreements pending
      before international bodies;
        (7) assessing the compatibility of domestic maritime
      infrastructure systems with overseas transport systems;
        (8) fostering innovations in maritime transportation pricing;
      and
        (9) improving maritime economics and finance.
    (c) Submission of applications
      An institution seeking designation as a National Maritime
    Enhancement Institute shall submit an application under regulations
    prescribed by the Secretary.
    (d) Designation criteria
      The Secretary shall designate an Institute under this section on
    the basis of the following criteria:
        (1) the demonstrated research and extension resources available
      to the designee for carrying out the activities specified in
      subsection (b) of this section;
        (2) the capability of the designee to provide leadership in
      making national and regional contributions to the solution of
      both long-range and immediate problems of the domestic maritime
      industry;
        (3) the existence of an established program of the designee
      encompassing research and training directed to enhancing maritime
      industries;
        (4) the demonstrated ability of the designee to assemble and
      evaluate pertinent information from national and international
      sources and to disseminate results of maritime industry research
      and educational programs through a continuing education program;
      and
        (5) the qualification of the designee as a nonprofit
      institution of higher learning.
    (e) Awards
      The Secretary may make awards on an equal matching basis to an
    institute designated under subsection (a) of this section from
    amounts appropriated. The aggregate annual amount of the Federal
    share of the awards by the Secretary shall not exceed $500,000.
    (f) University transportation research funds
      (1) In general
        The Secretary may make a grant under section 5505 of title 49
      to an institute designated under subsection (a) of this section
      for maritime and maritime intermodal research under that section
      as if the institute were a university transportation center.
      (2) Advice and consultation of MARAD
        In making a grant under the authority of paragraph (1), the
      Secretary, through the Research and Innovative Technology
      Administration, shall advise the Maritime Administration
      concerning the availability of funds for the grants, and consult
      with the Administration on the making of the grants.

-SOURCE-
    (Pub. L. 101-115, Sec. 8, Oct. 13, 1989, 103 Stat. 694; Pub. L. 101-
    595, title VII, Sec. 702, Nov. 16, 1990, 104 Stat. 2994; Pub. L.
    102-241, Sec. 47, Dec. 19, 1991, 105 Stat. 2227; Pub. L. 106-398,
    Sec. 1 [div. C, title XXXV, Sec. 3504], Oct. 30, 2000, 114 Stat.
    1654, 1654A-493; Pub. L. 108-426, Sec. 2(c)(4), Nov. 30, 2004, 118
    Stat. 2424.)

-COD-
                               CODIFICATION                           
      Section was not enacted as part of the Merchant Marine Act, 1936,
    which comprises this chapter.

-MISC1-
                                AMENDMENTS                            
      2004 - Subsec. (f)(2). Pub. L. 108-426 substituted "Research and
    Innovative Technology Administration" for "Research and Special
    Programs Administration".
      2000 - Subsec. (f). Pub. L. 106-398 added subsec. (f).
      1991 - Subsec. (e). Pub. L. 102-241 inserted "by the Secretary"
    before "shall not" and substituted "$500,000" for "$100,000".
      1990 - Subsec. (e). Pub. L. 101-595 amended subsec. (e)
    generally. Prior to amendment, subsec. (e) read as follows: "The
    Secretary may make research grants, on an equal matching basis, to
    an institute from amounts appropriated pursuant to section 1(2)(B).
    The aggregate amount of such grants shall not exceed $100,000."

-End-

-CITE-
    46 USC APPENDIX Sec. 1122                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER II - CREATION AND FUNCTIONS OF MARITIME AGENCIES

-HEAD-
    Sec. 1122. Maritime problems; cooperation with others; cargo
      carriage; recommendations

-STATUTE-
      The Secretary of Transportation is authorized and directed - 
    (a) Study of maritime problems
      To study all maritime problems arising in the carrying out of the
    policy set forth in subchapter I of this chapter;
    (b) Inducing preferences for American vessels; construction of
      super-liners
      To study, and to cooperate with vessel owners in devising means
    by which - 
        (1) the importers and exporters of the United States can be
      induced to give preference to vessels under United States
      registry; and
        (2) there may be constructed by or with the aid of the United
      States express-liner or super-liner vessels comparable with those
      of other nations, especially with a view to their use in national
      emergency, and the use in connection with or in lieu of such
      vessels of transoceanic aircraft service;
    (c) Collaboration with owners and builders
      To collaborate with vessel owners and shipbuilders in developing
    plans for the economical construction of vessels and their
    propelling machinery, of most modern economical types, giving
    thorough consideration to all well-recognized means of propulsion
    and taking into account the benefits accruing from standardized
    production where practicable and desirable; and
    (d) Liaison with other agencies and trade organizations
      To establish and maintain liaison with such other boards,
    commissions, independent establishments, and departments of the
    United States Government, and with such representative trade
    organizations throughout the United States as may be concerned,
    directly or indirectly, with any movement of commodities in the
    water-borne export and import foreign commerce of the United
    States, for the purpose of securing preference to vessels of United
    States registry in the shipment of such commodities.
    (e) Repealed. Pub. L. 98-237, Sec. 20(a), Mar. 20, 1984, 98 Stat.
      88
    (f) Development and implementation of new methods of cargo
      carriage; preferences for cargo containers
      To study means and methods of encouraging the development and
    implementation of new concepts for the carriage of cargo in the
    domestic and foreign commerce of the United States, and to study
    the economic and technological aspects of the use of cargo
    containers as a method of carrying out the declaration of policy
    set forth in subchapter I of this chapter, and in carrying out the
    provisions of this subsection and such policy the United States
    shall not give preference as between carriers upon the basis of
    length, height, or width of cargo containers or length, height, or
    width of cargo container cells and this requirement shall be
    applicable to all existing container vessels and any container
    vessel to be constructed or rebuilt; and
    (g) Recommendations for further legislation
      To make recommendations to Congress, from time to time, for such
    further legislation as he deems necessary better to effectuate the
    purpose and policy of this chapter.

-SOURCE-
    (June 29, 1936, ch. 858, title II, Sec. 212, 49 Stat. 1990; Pub. L.
    90-268, Sec. 1, Mar. 16, 1968, 82 Stat. 49; Pub. L. 97-31, Sec.
    12(69), Aug. 6, 1981, 95 Stat. 159; Pub. L. 98-237, Sec. 20(a),
    (c), Mar. 20, 1984, 98 Stat. 88, 90.)

-MISC1-
                                AMENDMENTS                            
      1984 - Subsec. (e). Pub. L. 98-237, Sec. 20(a), struck out
    subsec. (e) which related to investigation of any and all
    discriminatory rates, charges, classifications, and practices
    whereby exporters and shippers of cargo originating in the United
    States are required by any common carrier by water in foreign trade
    of United States to pay a higher rate from any United States port
    to a foreign port than rate charged by such carrier on similar
    cargo from such foreign port to such United States port, and making
    of recommendations to Congress of measures by which such
    discrimination could be corrected. See section 1710 of this
    Appendix.
      Pub. L. 98-237, Sec. 20(c), struck out undesignated pars.
    following subsec. (d), "The Federal Maritime Commission is
    authorized and directed - " and following subsec. (e), "The
    Secretary of Transportation, is authorized and directed - ".
      1981 - Pub. L. 97-31 substituted in provision preceding subsec.
    (a) "Secretary of Transportation" for "Commission"; inserted,
    following subsec. (d), "The Federal Maritime Commission is
    authorized and directed - "; inserted, following subsec. (e), "The
    Secretary of Transportation, is authorized and directed - "; and
    substituted, in subsec. (g), "he" for "it". For prior transfers of
    functions of the Commission, meaning the United States Maritime
    Commission, see Transfer of Functions note below.
      1968 - Subsecs. (f), (g). Pub. L. 90-268 added subsec. (f) and
    redesignated former subsec. (f) as (g).

                             SAVINGS PROVISION                         
      Amendment by Pub. L. 98-237 not to affect suits filed before Mar.
    20, 1984, or claims arising out of conduct engaged in before Mar.
    20, 1984, and filed within 1 year after that date; and agreements,
    contracts, modifications, and exemptions approved or licenses
    issued by the Federal Maritime Commission prior to Mar. 20, 1984,
    to continue as if approved or issued under chapter 36 (Sec. 1701 et
    seq.) of this Appendix, but new agreements, contracts, and
    modifications to existing, pending, or new contracts or agreements
    to be considered under chapter 36 of this Appendix, see section
    1719 of this Appendix.

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      For transfer of functions of United States Maritime Commission,
    see Reorg. Plan No. 6 of 1949, Reorg. Plan No. 21 of 1950, and
    Reorg. Plan No. 7 of 1961, set out under section 1111 of this
    Appendix.

-End-

-CITE-
    46 USC APPENDIX Sec. 1122a                                  01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER II - CREATION AND FUNCTIONS OF MARITIME AGENCIES

-HEAD-
    Sec. 1122a. Vessel utilization and performance reports; filing;
      civil penalty; lien upon vessel; remission or mitigation of
      penalty

-STATUTE-
      The operator of a vessel in waterborne foreign commerce of the
    United States shall file at such times and in such manner as the
    Secretary of Transportation may prescribe by regulations, such
    report, account, record, or memorandum relating to the utilization
    and performance of such vessel in commerce of the United States, as
    the Secretary may determine to be necessary or desirable in order
    to carry out the purposes and provisions of this chapter. Such
    report, account, record, or memorandum shall be signed and verified
    in accordance with regulations prescribed by the Secretary. An
    operator who does not file the report, account, record, or
    memorandum as required by this section and the regulations issued
    hereunder, shall be liable to the United States in a penalty of $50
    for each day of such violation. The amount of any penalty imposed
    for any violation of this section upon the operator of any vessel
    shall constitute a lien upon the vessel involved in the violation,
    and such vessel may be libeled therefor in the district court of
    the United States for the district in which it may be found. The
    Secretary of Transportation may, in his discretion, remit or
    mitigate any penalty imposed under this section on such terms as he
    may deem proper.

-SOURCE-
    (June 29, 1936, ch. 858, title II, Sec. 212(A), as added June 25,
    1956, ch. 437, 70 Stat. 332; amended Pub. L. 97-31, Sec. 12(70),
    Aug. 6, 1981, 95 Stat. 159.)

-MISC1-
                                AMENDMENTS                            
      1981 - Pub. L. 97-31 substituted "Secretary of Transportation"
    for "Secretary of Commerce" wherever appearing.

-End-

-CITE-
    46 USC APPENDIX Sec. 1122b                                  01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER II - CREATION AND FUNCTIONS OF MARITIME AGENCIES

-HEAD-
    Sec. 1122b. Mobile trade fairs

-STATUTE-
    (a) Use of United States flag vessels and aircraft insofar as
      practicable
      The Secretary of Commerce shall encourage and promote the
    development and use of mobile trade fairs which are designed to
    show and sell the products of United States business and
    agriculture at foreign ports and at other commercial centers
    throughout the world where the operator or operators of the mobile
    trade fairs use insofar as practicable United States flag vessels
    and aircraft in the transportation of their exhibits.
    (b) Technical and financial assistance; exceptions
      The Secretary of Commerce is authorized to provide to the
    operator or operators of such mobile trade fairs technical
    assistance and support as well as financial assistance for the
    purpose of defraying certain expenses incurred abroad (other than
    the cost of transportation on foreign-flag vessels and aircraft),
    when the Secretary determines that such operations provide an
    economical and effective means of promoting export sales.
    (c) Use of foreign currencies
      In addition to any amounts appropriated to carry out trade
    promotion activities, the President may use foreign currencies
    owned by or owed to the United States to carry out this section.

-SOURCE-
    (June 29, 1936, ch. 858, title II, Sec. 212(B), as added Pub. L. 87-
    839, Sec. 1, Oct. 18, 1962, 76 Stat. 1074; amended Pub. L. 89-66,
    July 7, 1965, 79 Stat. 211; Pub. L. 90-434, July 27, 1968, 82 Stat.
    449; Pub. L. 100-418, title X, Sec. 10003(a), Aug. 23, 1988, 102
    Stat. 1572.)

-COD-
                               CODIFICATION                           
      Subsec. (d) of this section, which required the Secretary of
    Commerce to submit an annual report to Congress on activities under
    this chapter, terminated, effective May 15, 2000, pursuant to
    section 3003 of Pub. L. 104-66, as amended, set out as a note under
    section 1113 of Title 31, Money and Finance. See, also, 14th item
    on page 53 of House Document No. 103-7.

-MISC1-
                                AMENDMENTS                            
      1988 - Subsec. (c). Pub. L. 100-418 amended subsec. (c)
    generally. Prior to amendment, subsec. (c) read as follows: "There
    is authorized to be appropriated not to exceed $500,000 per fiscal
    year for each of the six fiscal years during the period beginning
    July 1, 1962, and ending June 30, 1968, and not to exceed $166,000
    for the fiscal year ending June 30, 1969. In addition to such
    appropriated sums, the President shall make maximum use of foreign
    currencies owned by or owed to the United States to carry out the
    purposes of this section."
      1968 - Subsec. (a). Pub. L. 90-434 substituted "use insofar as
    practicable" for "exclusively use".
      Subsec. (b). Pub. L. 90-434 inserted "(other than the cost of
    transportation on foreign-flag vessels and aircraft)," after
    "expenses incurred abroad".
      Subsec. (c). Pub. L. 90-434 authorized appropriation of not to
    exceed $166,000 for the fiscal year ending June 30, 1969.
      1965 - Subsec. (c). Pub. L. 89-66 substituted "six" and "June 30,
    1968" for "three" and "June 30, 1965", respectively.

-End-

-CITE-
    46 USC APPENDIX Sec. 1123                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER II - CREATION AND FUNCTIONS OF MARITIME AGENCIES

-HEAD-
    Sec. 1123. Obsolete tonnage; tramp service

-STATUTE-
      The Secretary of Transportation shall make studies of and make
    reports to Congress on the following:
        (1) The scrapping or removal from service of old or obsolete
      merchant tonnage owned by the United States or in use in the
      merchant marine.
        (2) Tramp shipping service and the advisability of citizens of
      the United States participating in such service with vessels
      under United States registry.

-SOURCE-
    (June 29, 1936, ch. 858, title II, Sec. 213, 49 Stat. 1991; Pub. L.
    87-877, Sec. 2(c), (d), Oct. 24, 1962, 76 Stat. 1201; Pub. L. 94-
    273, Sec. 27, Apr. 21, 1976, 90 Stat. 380; Pub. L. 97-31, Sec.
    12(71), Aug. 6, 1981, 95 Stat. 159; Pub. L. 105-85, div. C, title
    XXXVI, Sec. 3602, Nov. 18, 1997, 111 Stat. 2075.)

-MISC1-
                                AMENDMENTS                            
      1997 - Pub. L. 105-85 substituted "on the following:" for "on - "
    in introductory provisions, redesignated subsecs. (a) and (b) as
    pars. (1) and (2), respectively, and realigned margins, substituted
    period for semicolon at end of par. (1), directed substitution of
    period for semicolon at end of par. (2) which could not be executed
    because par. (2) already contained period at end, and struck out
    subsec. (c) which read as follows: "The relative cost of
    construction or reconditioning of comparable ocean vessels in
    shipyards in the various coastal districts of the United States,
    together with recommendations as to how such shipyards may compete
    for work on an equalized basis; reports under this paragraph shall
    be made annually on the first day of October of each year."
      1981 - Pub. L. 97-31 substituted in provision preceding subsec.
    (a) "Secretary of Transportation" for "Commission". For prior
    transfers of functions of the Commission, meaning the United States
    Maritime Commission, see Transfer of Functions note below.
      1976 - Subsec. (c). Pub. L. 94-273 substituted "October" for
    "July".
      1962 - Pub. L. 87-877 substituted "reports to Congress" for "a
    report to Congress as soon as practicable on", in text preceding
    subsec. (a), and inserted "; reports under this paragraph shall be
    made annually on the first day of July of each year" in subsec.
    (c).

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      For transfer of functions of United States Maritime Commission,
    see Reorg. Plan No. 6 of 1949 and Reorg. Plan No. 21 of 1950, set
    out under section 1111 of this Appendix.

-End-

-CITE-
    46 USC APPENDIX Sec. 1124                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER II - CREATION AND FUNCTIONS OF MARITIME AGENCIES

-HEAD-
    Sec. 1124. Witnesses

-STATUTE-
    (a) Summoning; oaths; production of books and papers; fees
      For the purpose of any investigation which, in the opinion of the
    Secretary of Transportation, is necessary and proper in carrying
    out this chapter, the Secretary may subpoena witnesses, administer
    oaths and affirmations, take evidence, and require the production
    of books, papers, or other documents that are relevant to the
    matter under investigation. The attendance of witnesses and the
    production of books, papers, or other documents may be required
    from any place in the United States or any territory, district, or
    possession thereof at any designated place of hearing. Witnesses
    summoned before the Secretary shall be paid the same fees and
    mileage that are paid witnesses in the courts of the United States.
    (b) Refusal to obey subpena; court orders; contempt
      Upon failure of any person to obey a subpoena issued by the
    Secretary, the Secretary may invoke the aid of any district court
    of the United States within the jurisdiction in which the person
    resides or carries on business in requiring the attendance and
    testimony of witnesses and the production of books, papers, or
    other documents. Any such court may issue an order requiring the
    person to appear before the Secretary, or an employee designated by
    the Secretary, there to produce books, papers, or other documents,
    if so ordered, or to give testimony relevant to the matter under
    investigation. A failure to obey an order of the court may be
    punished by the court as a contempt thereof. Process in such a case
    may be served in the judicial district in which the person resides
    or may be found.

-SOURCE-
    (June 29, 1936, ch. 858, title II, Sec. 214, 49 Stat. 1991; June
    23, 1938, ch. 600, Sec. 3, 52 Stat. 954; Pub. L. 91-452, title II,
    Sec. 241, Oct. 15, 1970, 84 Stat. 930; Pub. L. 97-31, Sec. 12(72),
    Aug. 6, 1981, 95 Stat. 159; Pub. L. 98-237, Sec. 20(a), Mar. 20,
    1984, 98 Stat. 89; Pub. L. 98-595, Sec. 2, Oct. 30, 1984, 98 Stat.
    3132.)

-MISC1-
                                AMENDMENTS                            
      1984 - Pub. L. 98-595 amended section generally, striking out in
    subsec. (a) "the Federal Maritime Commission or" before "the
    Secretary of Transportation", "any member of the Commission, or any
    officer or employee thereof designated by it or" before "the
    Secretary", and "the Commission or" before "the Secretary shall be
    paid", and in subsec. (b), striking out "the Commission or" before
    "the Secretary," substituting "the Secretary" for "it or he", and
    striking out "the Commission or" before "the Secretary" in two
    places.
      Pub. L. 98-237 provided that this section is repealed wherever it
    applies to the Federal Maritime Commission, any member of the
    Commission, or any member, officer, or employee designated by the
    Commission. See Amendment note above for Pub. L. 98-595.
      1981 - Subsec. (a). Pub. L. 97-31, Sec. 12(72)(A)-(C),
    substituted "Federal Maritime Commission or the Secretary of
    Transportation" for "Commission"; inserted "or the Secretary,"
    after "designated by it," and "Commission". For prior transfers of
    functions of the Commission, meaning the United States Maritime
    Commission, see Transfer of Functions note below.
      Subsec. (b). Pub. L. 97-31, Sec. 12(72)(C), (D), inserted "or the
    Secretary," after "Commission" in three places and substituted "it
    or he" for "it". For prior transfers of functions of the
    Commission, meaning the United States Maritime Commission, see
    Transfer of Functions note below.
      1970 - Subsec. (c). Pub. L. 91-452 struck out subsec. (c) which
    related to the immunity from prosecution of any person compelled to
    testify or produce evidence, document or otherwise, after claiming
    his privilege against self-incrimination.
      1938 - Subsec. (a). Act June 23, 1938, struck out "within the
    Federal judicial district in which the witness resides" after
    "place of hearing".

                     EFFECTIVE DATE OF 1970 AMENDMENT                 
      Amendment by Pub. L. 91-452 effective on sixtieth day following
    Oct. 15, 1970, and not to affect any immunity to which any
    individual is entitled under this section by reason of any
    testimony given before sixtieth day following Oct. 15, 1970, see
    section 260 of Pub. L. 91-452, set out as an Effective Date;
    Savings Provision note under section 6001 of Title 18, Crimes and
    Criminal Procedure.

                             SAVINGS PROVISION                         
      Amendment by Pub. L. 98-237 not to affect suits filed before Mar.
    20, 1984, or claims arising out of conduct engaged in before Mar.
    20, 1984, and filed within 1 year after that date; and agreements,
    contracts, modifications, and exemptions approved or licenses
    issued by the Federal Maritime Commission prior to Mar. 20, 1984,
    to continue as if approved or issued under chapter 36 (Sec. 1701 et
    seq.) of this Appendix, but new agreements, contracts, and
    modifications to existing, pending, or new contracts or agreements
    to be considered under chapter 36 of this Appendix, see section
    1719 of this Appendix.

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      For transfer of functions of United States Maritime Commission,
    see Reorg. Plan No. 6 of 1949, Reorg. Plan No. 21 of 1950, and
    Reorg. Plan No. 7 of 1961, set out under section 1111 of this
    Appendix.

-End-

-CITE-
    46 USC APPENDIX Sec. 1125                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER II - CREATION AND FUNCTIONS OF MARITIME AGENCIES

-HEAD-
    Sec. 1125. Acquisition of vessels

-STATUTE-
      The Secretary of Transportation is authorized to acquire by
    purchase or otherwise such vessels constructed in the United States
    as he may deem necessary to establish, maintain, improve, or effect
    replacements upon any service, route, or line in the foreign
    commerce of the United States determined to be essential under
    section 1121 of this Appendix, and to pay for the same out of his
    construction fund: Provided, That the price paid therefor shall be
    based upon a fair and reasonable valuation, but it shall not exceed
    by more than 5 per centum the cost of such vessel to the owner
    (excluding any construction-differential subsidy and the cost of
    national defense features paid by the Secretary of Transportation)
    plus the actual cost previously expended thereon for reconditioning
    less depreciation based upon a twenty-five year life expectancy of
    the vessel. No such vessel shall be acquired by the Secretary of
    Transportation unless the Secretary of the Navy has certified to
    the Secretary of Transportation that such vessel is suitable for
    economical and speedy conversion into a naval or military
    auxiliary, or otherwise suitable for the use of the United States
    in time of war or national emergency. Every vessel acquired under
    authority of this section that is not documented under the laws of
    the United States at the time of its acquisition shall be so
    documented as soon as practicable.

-SOURCE-
    (June 29, 1936, ch. 858, title II, Sec. 215, as added June 23,
    1938, ch. 600, Sec. 4, 52 Stat. 954; amended Pub. L. 86-518, Sec.
    1, June 12, 1960, 74 Stat. 216; Pub. L. 97-31, Sec. 12(73), Aug. 6,
    1981, 95 Stat. 160.)

-MISC1-
                                AMENDMENTS                            
      1981 - Pub. L. 97-31 substituted "Secretary of Transportation"
    for "Commission" wherever appearing, "his" for "it", and "his" for
    "its" in first sentence. In first sentence after "United States
    as", "he" (rather than "his") was substituted for "it" as the
    probable intent of Congress. For prior transfers of functions of
    the Commission, meaning the United States Maritime Commission, see
    Transfer of Functions note below.
      1960 - Pub. L. 86-518 substituted "twenty-five year life
    expectancy" for "twenty-year life expectancy".

                     EFFECTIVE DATE OF 1960 AMENDMENT                 
      Section 8(a) of Pub. L. 86-518 provided that: "The amendments
    made by this Act [amending this section, sections 1152, 1153, 1156,
    1157, 1159, 1160, 1175, 1177, 1181, 1195, 1204, 1274, and 1276 of
    this Appendix, section 1276a of former Title 46, Shipping, and
    section 1737 of Title 50, Appendix, War and National Defense] shall
    apply only to vessels delivered by the shipbuilder on or after
    January 1, 1946, and with respect to such vessels shall become
    effective on January 1, 1960. With respect to vessels delivered by
    the shipbuilder before January 1, 1946, the provisions of the
    Merchant Marine Act, 1936 [this chapter], existing immediately
    before the date of enactment of this Act [June 12, 1960] shall
    continue in effect."

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      For transfer of functions of United States Maritime Commission,
    see Reorg. Plan No. 6 of 1949 and Reorg. Plan No. 21 of 1950, set
    out under section 1111 of this Appendix.

-MISC2-
      RATE OF DEPRECIATION FOR VESSELS DELIVERED BY SHIPBUILDER ON OR
             AFTER JANUARY 1, 1946, AND BEFORE JANUARY 1, 1960
      Section 8(b) of Pub. L. 86-518 provided that with regard to
    vessels delivered by the shipbuilder on or after Jan. 1, 1946, and
    before Jan. 1, 1960, depreciation under this section and sections
    1152(g), 1157, 1160(d), 1177(b), 1181(c), 1195, and 1204 of this
    Appendix and section 1276a(4) of former Title 46, Shipping, was
    generally to be taken for the period prior to Jan. 1, 1960, at the
    rate provided by this chapter, as it existed immediately prior to
    the amendments made by Pub. L. 86-518, and for the period after
    Jan. 1, 1960, such depreciation was generally to be taken on the
    basis of the remaining years of a useful life of twenty-five years
    unless the vessel was reconstructed or reconditioned in which event
    such depreciation, from the time of such reconstruction or
    reconditioning, was generally to be taken on the basis of the
    remaining years of a useful life of the vessel determined jointly
    by the Secretary of Commerce and the Secretary of the Treasury.

    REVISION OF CONTRACTS, COMMITMENTS TO INSURE MORTGAGES, MORTGAGES,
      AND MORTGAGE INSURANCE CONTRACTS ENTERED INTO PRIOR TO JUNE 12,
     1960; AMENDMENT OF CONTRACT DEALING WITH VESSELS HAVING EXTENDED
                                   LIFE
      Section 8(c) of Pub. L. 86-518, as amended by Pub. L. 88-225,
    Dec. 23, 1963, 77 Stat. 469, provided that any contract, commitment
    to insure a mortgage under subchapter XI of this chapter, or
    mortgage, between any person and the United States or any agency
    thereof, or any mortgage insurance contract under subchapter XI of
    this chapter, which was entered into prior to June 12, 1960 and
    which would have been affected if the provisions of the amendments
    made by Pub. L. 86-518 [see Effective Date of 1960 Amendment note
    above] were applicable thereto, could, at the request of such
    person agreed to by any third parties in interest, or at the
    request of the mortgagor agreed to by the mortgagee in the case of
    such a mortgage insurance contract, made within one hundred and
    eighty days after June 12, 1960 to the agency of the United States
    holding such contract, be revised to be in accordance with the law
    as amended by Pub. L. 86-518, with respect to such of the vessels
    covered thereby as were designated by the applicant, that any such
    revision was to provide with respect to the amendments to this
    section and sections 1152(g), 1157, 1160(d), 1177(b), 1181(c),
    1195, and 1204 of this Appendix and section 1276a(4) of former
    Title 46, Shipping, that depreciation for the period prior to Jan.
    1, 1960, was to be taken at the rate provided by the Merchant
    Marine Act, 1936, act June 29, 1936, ch. 858, 49 Stat. 1985, prior
    to the amendments made by Pub. L. 86-518, and that the remaining
    depreciation was to be taken for the period beginning Jan. 1, 1960,
    on the basis of the remaining years of a useful life of twenty-five
    years, unless the vessel was reconstructed or reconditioned, in
    which event such depreciation from the time of such reconstruction
    or reconditioning was to be taken on the basis of the remaining
    years of a useful life of the vessel determined jointly by the
    Secretary of Commerce and the Secretary of the Treasury, that any
    such revision was to provide with respect to any remaining unpaid
    debts that such unpaid debts were to be paid in equal annual
    installments over the remaining years of a useful life of twenty-
    five years, and that provisions in such contracts affecting
    vessels covered by Pub. L. 86-518 providing for refund of
    construction-differential subsidy for domestic operations under
    section 1156 of this Appendix and costs of national defense
    features for commercial use were to be amended so that for such
    refund payments made for the period after Dec. 31, 1959, the base
    upon which such refund payments were computed annually thereafter
    were to be the undepreciated amount of subsidy or the national
    defense feature, as the case may be, as at Dec. 31, 1959, divided
    by the years of life of the vessels as provided under Pub. L. 86-
    518, remaining after Dec. 31, 1959.

      COMMERCIAL EXPECTANCY OR PERIOD OF DEPRECIATION OF TANKERS AND
                        OTHER LIQUID BULK CARRIERS
      Section 9 of Pub. L. 86-518 provided that: "Nothing in any
    amendment made by this Act [see Effective Date of 1960 Amendment
    note above] shall operate or be interpreted to change from twenty
    to twenty-five years the provisions of the Merchant Marine Act,
    1936, as amended [this chapter], relating to the commercial
    expectancy or period of depreciation of any tanker or other liquid
    bulk carrier."

-End-

-CITE-
    46 USC APPENDIX Sec. 1125a                                  01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER II - CREATION AND FUNCTIONS OF MARITIME AGENCIES

-HEAD-
    Sec. 1125a. Construction, repair, etc., of vessels for Government
      agencies

-STATUTE-
      The Secretary of Transportation is authorized to construct,
    reconstruct, repair, equip, and outfit, by contract or otherwise,
    vessels or parts thereof, for any other department or agency of the
    Government, to the extent that such other department or agency is
    authorized by law to do so for its own account, and any obligations
    heretofore or hereafter incurred by the Secretary for any of the
    aforesaid purposes shall not diminish or otherwise affect any
    contract authorization granted to the Secretary: Provided, The
    obligations incurred or the expenditures made are charged against
    and, to the amount of such obligation or expenditure, diminish the
    existing appropriation or contract authorization of such department
    or agency.

-SOURCE-
    (Feb. 6, 1941, ch. 5, Sec. 4, 55 Stat. 6; Pub. L. 97-31, Sec.
    12(74), Aug. 6, 1981, 95 Stat. 160.)

-COD-
                               CODIFICATION                           
      Section was not enacted as part of the Merchant Marine Act, 1936,
    which comprises this chapter.

-MISC1-
                                AMENDMENTS                            
      1981 - Pub. L. 97-31 substituted "Secretary of Transportation"
    for "Commission" the first time it appeared and "Secretary" for
    "Commission" the next two times it appeared. For prior transfers of
    functions of the Commission, meaning the United States Maritime
    Commission, see Transfer of Functions note below.

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      For transfer of functions of United States Maritime Commission,
    see Reorg. Plan No. 6 of 1949 and Reorg. Plan No. 21 of 1950, set
    out under section 1111 of this Appendix.

-End-

-CITE-
    46 USC APPENDIX Sec. 1126-1                                 01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER II - CREATION AND FUNCTIONS OF MARITIME AGENCIES

-HEAD-
    Sec. 1126-1. Training of future naval officers under Naval Reserve
      Officer Training Corps programs at merchant marine academies for
      promotion of maximum integration of naval and merchant marine
      seapower of Nation

-STATUTE-
      (a) It is the policy of the United States that the United States
    Navy and the Merchant Marine of the United States work closely
    together to promote the maximum integration of the total seapower
    forces of the Nation. In furtherance of this policy, it is
    necessary and desirable that special steps be taken to assure that
    Naval Reserve Officer Training Corps programs (for training future
    naval officers) be maintained at Federal and State merchant marine
    academies.
      (b) It is the sense of the Congress that the Secretary of the
    Navy should work with the Maritime Administrator and the
    administrators of the several merchant marine academies to assure
    that the training available at these academies is consistent with
    Navy standards and needs.

-SOURCE-
    (Pub. L. 94-361, title VI, Sec. 603, July 14, 1976, 90 Stat. 929;
    Pub. L. 97-31, Sec. 12(76), Aug. 6, 1981, 95 Stat. 160.)

-COD-
                               CODIFICATION                           
      Section was enacted as part of Pub. L. 94-361, popularly known as
    the Department of Defense Appropriation Authorization Act, 1977,
    and not as part of the Merchant Marine Act, 1936, which comprises
    this chapter.

-MISC1-
                                AMENDMENTS                            
      1981 - Subsec. (b). Pub. L. 97-31 substituted "Maritime
    Administrator" for "Assistant Secretary of Commerce for Maritime
    Affairs".

-End-

-CITE-
    46 USC APPENDIX SUBCHAPTER III - AMERICAN SEAMEN            01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER III - AMERICAN SEAMEN

-HEAD-
                     SUBCHAPTER III - AMERICAN SEAMEN                 

-End-

-CITE-
    46 USC APPENDIX Sec. 1131                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER III - AMERICAN SEAMEN

-HEAD-
    Sec. 1131. Manning and wage scales; subsidy contracts

-STATUTE-
    (a) Investigation of wages and working conditions; establishment of
      wage and manning scales; incorporation in subsidy contracts
      The Secretary of Transportation is authorized and directed to
    investigate the employment and wage conditions in ocean-going
    shipping and, after making such investigation and after appropriate
    hearings, to incorporate in the contracts authorized under
    subchapters VI and VII of this chapter minimum manning scales and
    minimum wage scales, and minimum working conditions for all
    officers and crews employed on all types of vessels receiving an
    operating-differential subsidy. After such minimum manning and wage
    scales, and working conditions shall have been adopted by the
    Secretary of Transportation, no change shall be made therein by the
    Secretary of Transportation except upon public notice of the
    hearing to be had, and a hearing by the Secretary of Transportation
    of all interested parties, under such rules as the Secretary of
    Transportation shall prescribe. The duly elected representatives of
    the organizations certified as the proper collective bargaining
    agencies shall have the right to represent the employees who are
    members of their organizations at any such hearings. Every
    contractor receiving an operating-differential subsidy shall post
    and keep posted in a conspicuous place on each such vessel operated
    by such contractor a printed copy of the minimum manning and wage
    scales, and working conditions prescribed by his contract and
    applicable to such vessel: Provided, however, That any increase in
    the operating expenses of the subsidized vessel occasioned by any
    change in the wage or manning scales or working conditions as
    provided in this section shall be added to the operating-
    differential subsidy previously authorized for the vessel.
    (b) Subsidy contracts; provisions relative to officers and crew
      Every contract executed under authority of subchapters VI and VII
    of this chapter shall require - 
        (1) Insofar as is practicable, officers' living quarters shall
      be kept separate and apart from those furnished for members of
      the crew;
        (2) Licensed officers and unlicensed members of the crew shall
      be entitled to make complaints or recommendations to the
      Secretary of Transportation providing they file such complaint or
      recommendation directly with the Secretary of Transportation, or
      with their immediate superior officer who shall be required to
      forward such complaint or recommendation with his remarks to the
      Secretary of Transportation, or with the authorized
      representatives of the respective collective bargaining agencies;
        (3) Licensed officers who are members of the United States Navy
      Reserve shall wear on their uniforms such special distinguishing
      insignia as may be approved by the Secretary of the Navy;
      officers being those men serving under licenses issued by the
      Bureau of Marine Inspection and Navigation or the Coast Guard;
        (4) The uniform stripes, decoration, or other insignia shall be
      of gold braid or woven gold or silver material, to be worn by
      officers, and no member of the ship's crew other than licensed
      officers shall be allowed to wear any uniform with such officer's
      identifying insignia;
        (5) No discrimination shall be practiced against licensed
      officers, who are otherwise qualified, because of their failure
      to qualify as members of the United States Navy Reserve.

-SOURCE-
    (June 29, 1936, ch. 858, title III, Sec. 301, 49 Stat. 1992; June
    23, 1938, ch. 600, Secs. 5, 6, 52 Stat. 955; 1946 Reorg. Plan No.
    3, Secs. 101-104, eff. July 16, 1946, 11 F.R. 7875, 60 Stat. 1097;
    Pub. L. 97-31, Sec. 12(82), Aug. 6, 1981, 95 Stat. 160; Pub. L. 109-
    163, div. A, title V, Sec. 515(g)(2)(A), Jan. 6, 2006, 119 Stat.
    3236.)

-MISC1-
                                AMENDMENTS                            
      2006 - Subsec. (b)(3), (5). Pub. L. 109-163 substituted "Navy
    Reserve" for "Naval Reserve".
      1981 - Subsec. (a). Pub. L. 97-31 substituted "Secretary of
    Transportation" for "Commission" in five places. For prior
    transfers of functions of the Commission, meaning the United States
    Maritime Commission, see Transfer of Functions note below.
      Subsec. (b)(2). Pub. L. 97-31 substituted "Secretary of
    Transportation" for "Commission" in three places. For prior
    transfers of functions of the Commission, meaning the United States
    Maritime Commission, see Transfer of Functions note set out below.
      1938 - Subsec. (a). Act June 23, 1938, Sec. 5, substituted
    "minimum working conditions" for "reasonable working conditions,"
    struck out provisions which required a formal complaint before any
    change in scales or working conditions, and permitted
    representatives of organizations certified as the proper collective
    bargaining agencies to represent employees at hearings.
      Subsec. (b). Act June 23, 1938, Sec. 6, struck out provisions
    which permitted complaints and recommendations to be made to the
    Coast Guard or the Department of Labor, and which required licensed
    officers to take their meals in the main dining salon of the
    vessel.

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      For transfer of functions of United States Maritime Commission,
    see Reorg. Plan No. 6 of 1949, Reorg. Plan No. 21 of 1950, and
    Reorg. Plan No. 7 of 1961, set out under section 1111 of this
    Appendix.
      For transfer of authorities, functions, personnel, and assets of
    the Coast Guard, including the authorities and functions of the
    Secretary of Transportation relating thereto, to the Department of
    Homeland Security, and for treatment of related references, see
    sections 468(b), 551(d), 552(d), and 557 of Title 6, Domestic
    Security, and the Department of Homeland Security Reorganization
    Plan of November 25, 2002, as modified, set out as a note under
    section 542 of Title 6.
      Coast Guard transferred to Department of Transportation, and
    functions, powers, and duties relating to Coast Guard of Secretary
    of the Treasury and of other officers and offices of Department of
    the Treasury transferred to Secretary of Transportation by Pub. L.
    89-670, Sec. 6(b)(1), Oct. 15, 1966, 80 Stat. 938. Section 6(b)(2)
    of Pub. L. 89-670, however, provided that notwithstanding such
    transfer of functions, Coast Guard shall operate as part of Navy in
    time of war or when President directs as provided in section 3 of
    Title 14, Coast Guard. See section 108 of Title 49, Transportation.
      For transfer of functions of other officers, employees, and
    agencies of Department of the Treasury, with certain exceptions, to
    Secretary of the Treasury with power to delegate, see Reorg. Plan
    No. 26 of 1950, Secs. 1, 2, eff. July 31, 1950, 15 F.R. 4935, 64
    Stat. 1280, 1281, set out in the Appendix to Title 5, Government
    Organization and Employees. Functions of Coast Guard, and
    Commandant of Coast Guard, excepted from transfer when Coast Guard
    is operating as part of Navy under sections 1 and 3 of Title 14.
      Phrase "or the Coast Guard" inserted in subsec. (b)(3) on
    authority of Reorg. Plan No. 3 of 1946, Secs. 101-104, set out as a
    note preceding section 3 of this Appendix.

-End-

-CITE-
    46 USC APPENDIX Sec. 1132                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER III - AMERICAN SEAMEN

-HEAD-
    Sec. 1132. Reemployment rights for certain merchant seamen

-STATUTE-
    (a) In general
      An individual who is certified by the Secretary of Transportation
    under subsection (c) of this section shall be entitled to
    reemployment rights and other benefits substantially equivalent to
    the rights and benefits provided for by chapter 43 of title 38 for
    any member of a Reserve component of the Armed Forces of the United
    States who is ordered to active duty.
    (b) Time for application
      An individual may submit an application for certification under
    subsection (c) of this section to the Secretary of Transportation
    not later than 45 days after the date the individual completes a
    period of employment described in subsection (c)(1)(A) of this
    section with respect to which the application is submitted.
    (c) Certification determination
      Not later than 20 days after the date the Secretary of
    Transportation receives from an individual an application for
    certification under this subsection, the Secretary shall - 
        (1) determine whether or not the individual - 
          (A) was employed in the activation or operation of a vessel -
        
            (i) in the National Defense Reserve Fleet maintained under
          section 1744 of Title 50, Appendix, in a period in which that
          vessel was in use or being activated for use under subsection
          (b) of that section;
            (ii) that is requisitioned or purchased under section 1242
          of this Appendix; or
            (iii) that is owned, chartered, or controlled by the United
          States and used by the United States for a war, armed
          conflict, national emergency, or maritime mobilization need
          (including for training purposes or testing for readiness and
          suitability for mission performance); and

          (B) during the period of that employment, possessed a valid
        license, certificate of registry, or merchant mariner's
        document issued under chapter 71 or chapter 73 (as applicable)
        of title 46; and

        (2) if the Secretary makes affirmative determinations under
      paragraph (1)(A) and (B), certify that individual under this
      subsection.
    (d) Equivalence to Military Selective Service Act certificate
      For purposes of reemployment rights and benefits provided by this
    section, a certification under subsection (c) of this section shall
    be considered to be the equivalent of a certificate referred to in
    paragraph (1) of section 4301(a) of title 38.(!1)

-SOURCE-
    (June 29, 1936, ch. 858, title III, Sec. 302, as added Pub. L. 104-
    239, Sec. 10(a), Oct. 8, 1996, 110 Stat. 3133.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      A certificate referred to in paragraph (1) of section 4301(a) of
    title 38, referred to in subsec. (d), probably means a certificate
    described in section 9(a) of the Military Selective Service Act (50
    App. U.S.C. 459(a)), which was referred to in section 4301(a)(1) of
    Title 38, Veterans' Benefits, prior to the general amendment of
    that section by section 2(a) of Pub. L. 103-353.

-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1132 of former Title 46, Shipping, acts June 29,
    1936, ch. 858, title III, Sec. 302, 49 Stat. 1992; Aug. 6, 1981,
    Pub. L. 97-31, Sec. 12(83), 95 Stat. 160, related to citizenship of
    officers and crew prior to repeal by Pub. L. 98-89, Sec. 4(b), Aug.
    26, 1983, 97 Stat. 603. See sections 7102 and 8103 of Title 46,
    Shipping.

                              EFFECTIVE DATE                          
      Pub. L. 104-239, Sec. 10(b), Oct. 8, 1996, 110 Stat. 3134,
    provided that: "The amendment made by subsection (a) [enacting this
    section], shall apply to employment described in section
    302(c)(1)(A) of the Merchant Marine Act, 1936 [subsec. (c)(1)(A) of
    this section], as amended by subsection (a), occurring after the
    date of enactment of this Act [Oct. 8, 1996]."

                                REGULATIONS                            
      Pub. L. 104-239, Sec. 8, Oct. 8, 1996, 110 Stat. 3133, provided
    that:
      "(a) In General. - The Secretary of Transportation may prescribe
    rules as necessary to carry out this Act [see Short Title of 1996
    Amendment note set out under section 1245 of this Appendix] and the
    amendments made by this Act.
      "(b) Interim Rules. - The Secretary of Transportation may
    prescribe interim rules necessary to carry out this Act and the
    amendments made by this Act. For this purpose, the Secretary of
    Transportation is excepted from compliance with the notice and
    comment requirements of section 553 of title 5, United States Code.
    All rules prescribed under the authority of this subsection that
    are not earlier superseded by final rules shall expire no later
    than 270 days after the date of enactment of this Act [Oct. 8,
    1996]."
      Pub. L. 104-239, Sec. 10(c), Oct. 8, 1996, 110 Stat. 3134,
    provided that: "Not later than 120 days after the date of the
    enactment of this Act [Oct. 8, 1996], the Secretary of
    Transportation shall issue regulations implementing this section
    [enacting this section and provisions set out as a note above]."

-FOOTNOTE-               

    (!1) See References in Text note below.

-End-

-CITE-
    46 USC APPENDIX SUBCHAPTER V -
           CONSTRUCTION-DIFFERENTIAL SUBSIDY               01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER V - CONSTRUCTION-DIFFERENTIAL SUBSIDY

-HEAD-
             SUBCHAPTER V - CONSTRUCTION-DIFFERENTIAL SUBSIDY         

-End-

-CITE-
    46 USC APPENDIX Sec. 1151                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER V - CONSTRUCTION-DIFFERENTIAL SUBSIDY

-HEAD-
    Sec. 1151. Subsidy authorized for vessels to be operated in foreign
      trade

-STATUTE-
    (a) Application for subsidy for construction; conditions precedent
      to granting
      Any proposed ship purchaser who is a citizen of the United States
    or any shipyard of the United States may make application to the
    Secretary of Transportation for a construction-differential subsidy
    to aid in the construction of a new vessel to be used in the
    foreign commerce of the United States. No such application shall be
    approved by the Secretary of Transportation unless he determines
    that (1) the plans and specifications call for a new vessel which
    will meet the requirements of the foreign commerce of the United
    States, will aid in the promotion and development of such commerce,
    and be suitable for use by the United States for national defense
    or military purposes in time of war or national emergency; (2) if
    the applicant is the proposed ship purchaser, the applicant
    possesses the ability, experience, financial resources, and other
    qualifications necessary for the operation and maintenance of the
    proposed new vessel, and (3) the granting of the aid applied for is
    reasonably calculated to carry out effectively the purposes and
    policy of this chapter. The contract of sale, and the mortgage
    given to secure the payment of the unpaid balance of the purchase
    price shall not restrict the lawful or proper use or operation of
    the vessel except to the extent expressly required by law. The
    Secretary of Transportation may give preferred consideration to
    applications that will tend to reduce construction-differential
    subsidies and that propose the construction of ships of higher
    transport capability and productivity.
    (b) Submission of plans to Navy Department; certification of
      approval
      The Secretary of Transportation shall submit the plans and
    specifications for the proposed vessel to the Navy Department for
    examination thereof and suggestions for such changes therein as may
    be deemed necessary or proper in order that such vessel shall be
    suitable for economical and speedy conversion into a naval or
    military auxiliary, or otherwise suitable for the use of the United
    States Government in time of war or national emergency. If the
    Secretary of the Navy approves such plans and specifications as
    submitted, or as modified, in accordance with the provisions of
    this subsection, he shall certify such approval to the Secretary of
    Transportation.
    (c) Application for subsidy for reconstruction or reconditioning;
      conditions precedent to granting; contracts
      Any citizen of the United States or any shipyard of the United
    States may make application to the Secretary of Transportation for
    a construction-differential subsidy to aid in reconstructing or
    reconditioning any vessel that is to be used in the foreign
    commerce of the United States. If the Secretary of Transportation,
    in the exercise of his discretion, shall determine that the
    granting of the financial aid applied for is reasonably calculated
    to carry out effectively the purposes and policy of this chapter,
    the Secretary of Transportation may approve such application and
    enter into a contract or contracts with the applicant therefor
    providing for the payment by the United States of a construction-
    differential subsidy that is to be ascertained, determined,
    controlled, granted, and paid, subject to all the applicable
    conditions and limitations of this subchapter and under such
    further conditions and limitations as may be prescribed in the
    rules and regulations of the Secretary of Transportation has
    adopted as provided in section 1114(b) of this Appendix; but the
    financial aid authorized by this subsection shall be extended to
    reconstruction or reconditioning only in exceptional cases and
    after a thorough study and a formal determination by the Secretary
    of Transportation that the proposed reconstruction or
    reconditioning is consistent with the purposes and policy of this
    chapter.

-SOURCE-
    (June 29, 1936, ch. 858, title V, Sec. 501, 49 Stat. 1995; June 23,
    1938, ch. 600, Sec. 8, 52 Stat. 955; July 17, 1952, ch. 939, Secs.
    1, 2, 66 Stat. 760, 761; Pub. L. 91-469, Secs. 6, 35(a), (c), (d),
    Oct. 21, 1970, 84 Stat. 1019, 1035; Pub. L. 91-603, Sec. 4(a), Dec.
    31, 1970, 84 Stat. 1675; Pub. L. 97-31, Sec. 12(84), Aug. 6, 1981,
    95 Stat. 161.)

-MISC1-
                                AMENDMENTS                            
      1981 - Pub. L. 97-31 substituted "Secretary of Transportation"
    for "Secretary of Commerce" wherever appearing.
      1970 - Pub. L. 91-469, Sec. 35(a), substituted "Secretary of
    Commerce" for "Commission", twice in subsecs. (a) and (b) and five
    times in subsec. (c).
      Subsec. (a). Pub. L. 91-603 substituted "for the operation and
    maintenance of" for "to enable it to operate and maintain" in cl.
    (2).
      Pub. L. 91-469, Secs. 6(1), 35(c), substituted "Any proposed ship
    purchaser who is a citizen of the United States or any shipyard of
    the United States" for "Any citizen of the United States", inserted
    in subd. (2) "if the applicant is the proposed ship purchaser,"
    struck out of cl. (3) "to replace worn-out or obsolete tonnage with
    new and modern ships, or otherwise" after "reasonably calculated",
    and authorized the Secretary of Commerce to give preferred
    consideration to applications that will tend to reduce construction-
    differential subsidies and that propose the construction of ships
    of high transport capability and productivity; and substituted "he"
    for "it" before "determines", respectively.
      Subsec. (c). Pub. L. 91-469, Secs. 6(2), 35(d), inserted "or any
    shipyard of the United States" after "Any citizen of the United
    States" and substituted "his" for "its" before "discretion",
    respectively.
      1952 - Subsecs. (a), (c). Act July 17, 1952, Secs. 1, 2, struck
    out requirements as to essentiality of the service, route, or line
    to be served by the vessel and provided that the lawful or proper
    use of the vessel may not be restricted.
      1938 - Subsec. (c). Act June 23, 1938, inserted reference to
    section 1114(b).

                    COMMISSION ON AMERICAN SHIPBUILDING                
      Section 41 of Pub. L. 91-469 established a Commission on American
    Shipbuilding, provided for the appointment and compensation of an
    Executive Director of the commission and other personnel, empowered
    the commission to study American shipbuilding with a view toward
    increased productivity and reduced costs, and to make a report to
    the President and Congress no later than three years after Oct. 21,
    1970 of the commission's findings and recommendations, and provided
    that the commission was to terminate sixty days after filing its
    report.

-End-

-CITE-
    46 USC APPENDIX Sec. 1152                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER V - CONSTRUCTION-DIFFERENTIAL SUBSIDY

-HEAD-
    Sec. 1152. Construction of vessels; bids; subsidies

-STATUTE-
    (a) Approval of bids; contract with bidder; acceptance of
      negotiated price; shipyard records, availability; contract with
      applicant or qualified citizen for purchase of vessel
      If the Secretary of the Navy certifies his approval under section
    1151(b) of this Appendix, and the Secretary of Transportation
    approves the application, he may secure bids for the construction
    of the proposed vessel according to the approved plans and
    specifications. If the bid of the shipbuilder who is the lowest
    responsible bidder is determined by the Secretary of Transportation
    to be fair and reasonable, the Secretary of Transportation may
    approve such bid, and if such approved bid is accepted by the
    proposed ship purchaser, the Secretary of Transportation is
    authorized to enter into a contract with the successful bidder for
    the construction, outfitting, and equipment of the proposed vessel,
    and for the payment by the Secretary of Transportation to the
    shipbuilder, on terms to be agreed upon in the contract, of the
    contract price of the vessel, out of the construction fund
    hereinbefore referred to, or out of other available funds.
    Notwithstanding the provisions of the first sentence of section
    1155 of this Appendix with respect to competitive bidding, the
    Secretary of Transportation is authorized to accept a price for the
    construction of the ship which has been negotiated between a
    shipyard and proposed ship purchaser if (1) the proposed ship
    purchaser and the shipyard submit backup cost details and evidence
    that the negotiated price is fair and reasonable; (2) the Secretary
    of Transportation finds that the negotiated price is fair and
    reasonable; and (3) the shipyard agrees that the Comptroller
    General of the United States or any of his duly authorized
    representatives shall, until the expiration of three years after
    final payment have access to and the right to examine any pertinent
    books, documents, papers, and records of the shipyard or any of its
    subcontractors related to the negotiation or performance of any
    contract or subcontract negotiated under this subsection and will
    include in its subcontracts a provision to that effect.
    Concurrently with entering into such contract with the shipbuilder,
    the Secretary of Transportation is authorized to enter into a
    contract for the sale of such vessel upon its completion, to the
    applicant if he is the proposed ship purchaser and if not to
    another citizen of the United States, if the Secretary of
    Transportation determines that such citizen possesses the ability,
    experience, financial resources, and other qualifications necessary
    for the operation and maintenance of the vessel at a price
    corresponding to the estimated cost, as determined by the Secretary
    of Transportation pursuant to the provisions of this chapter, of
    building such vessel in a foreign shipyard.
    (b) Basis for fixing subsidy; cost of construction in foreign
      yards; annual recomputation and publication of foreign cost;
      limitation on construction differential; report on American
      shipbuilding industry
      The amount of reduction in selling price which is herein termed
    "construction differential subsidy" shall equal, but not exceed,
    the excess of the bid of the shipbuilder constructing the proposed
    vessel (excluding the cost of any features incorporated in the
    vessel for national defense uses, which shall be paid by the
    Secretary in addition to the subsidy), over the fair and reasonable
    estimate of cost, as determined by the Secretary, of the
    construction of that type vessel if it were constructed under
    similar plans and specifications (excluding national defense
    features as above provided) in a foreign shipbuilding center which
    is deemed by the Secretary to furnish a fair and representative
    example for the determination of the estimated foreign cost of
    construction of vessels of the type proposed to be constructed. The
    Secretary of Transportation shall recompute such estimated foreign
    cost annually unless, in the opinion of the Secretary, there has
    been a significant change in shipbuilding market conditions. The
    Secretary shall publish notice of his intention to compute or
    recompute such estimated foreign cost and shall give interested
    persons, including but not limited to shipyards and shipowners and
    associations thereof, an opportunity to file written statements.
    The Secretary's consideration shall include, but not be limited to,
    all relevant matter so filed, and his determination shall include
    or be accompanied by a concise explanation of the basis of his
    determination. The construction differential approved and paid by
    the Secretary shall not exceed 50 per centum of the cost of
    constructing, reconstructing, or reconditioning the vessel
    (excluding the cost of national defense features). If the Secretary
    finds that the construction differential exceeds, in any case, the
    foregoing percentage of such cost, the Secretary may negotiate with
    any bidder (whether or not such person is the lowest bidder) and
    may contract with such bidder (notwithstanding the first sentence
    of section 1155 of this Appendix) for the construction,
    reconstruction, or reconditioning of the vessel involved in a
    domestic shipyard at a cost which will reduce the construction
    differential to such percentage or less. In the event that the
    Secretary has reason to believe that the bidding in any instance is
    collusive, he shall report all of the evidence on which he acted
    (1) to the Attorney General of the United States, and (2) to the
    President of the Senate and to the Speaker of the House of
    Representatives if the Congress shall be in session or if the
    Congress shall not be in session, then to the Secretary of the
    Senate and Clerk of the House, respectively.
    (c) Terms of sale of vessel to purchaser
      In such contract of sale between the purchaser and the Secretary
    of Transportation, the purchaser shall be required to make cash
    payments to the Secretary of Transportation of not less than 25 per
    centum of the price at which the vessel is sold to the purchaser.
    The cash payments shall be made at the time and in the same
    proportion as provided for the payments on account of the
    construction cost in the contract between the shipbuilder and the
    Secretary of Transportation. The purchaser shall pay, not less
    frequently than annually, interest on those portions of the
    Secretary of Transportation's payments as made to the shipbuilder
    which are chargeable to the purchaser's portion of the price of the
    vessel (after deduction of the purchaser's cash payments) at a rate
    not less than (i) a rate determined by the Secretary of the
    Treasury, taking into consideration the current average market
    yield on outstanding marketable obligations of the United States
    with remaining periods to maturity comparable to the average
    maturities of such loans, adjusted to the nearest one-eighth of 1
    per centum, plus (ii) an allowance adequate in the judgment of the
    Secretary of Transportation to cover administrative costs. The
    balance of such purchase price shall be paid by the purchaser,
    within twenty-five years after delivery of the vessel and in not to
    exceed twenty-five equal annual installments, the first of which
    shall be payable one year after the delivery of the vessel by the
    Secretary of Transportation to the purchaser. Interest at the rate
    per annum applicable to payments that are chargeable to the
    purchaser's portion of the price of the vessel shall be paid on all
    such installments of the purchase price remaining unpaid.
    (d) Repealed. Pub. L. 87-877, Sec. 2(a), Oct. 24, 1962, 76 Stat.
      1200
    (e) Construction in navy yards; sales to citizens; terms
      If no bids are received for the construction, outfitting, or
    equipping of such vessel, or if it appears to the Secretary of
    Transportation that the bids received from privately owned
    shipyards of the United States are collusive, excessive, or
    unreasonable, and if a citizen of the United States agrees to
    purchase said vessel as provided in this section, then, to provide
    employment for citizens of the United States, the Secretary of
    Transportation may have such vessel constructed, outfitted, or
    equipped at not in excess of the actual cost thereof in a navy yard
    of the United States under such regulations as may be promulgated
    by the Secretary of the Navy and the Secretary of Transportation.
    In such event the Secretary of Transportation is authorized to pay
    for any such vessel so constructed from his construction fund. The
    Secretary of Transportation is authorized to sell any vessel so
    constructed, outfitted, or equipped in a navy yard to a citizen of
    the United States for the fair and reasonable value thereof, but at
    not less than the cost thereof less the equivalent to the
    construction differential subsidy determined as provided by
    subsection (b) of this section, such sale to be in accordance with
    all the provisions of this subchapter.
    (f) Survey of shipbuilding capability; correction of inadequacies;
      reimbursement of certain vessel construction and delivery
      expenses
      The Secretary of Transportation, with the advice of and in
    coordination with the Secretary of the Navy, shall at least once
    each year, as required for purposes of this chapter, survey the
    existing privately owned shipyards capable of merchant ship
    construction, or review available data on such shipyards if deemed
    adequate, to determine whether their capabilities for merchant ship
    construction, including facilities and skilled personnel, provide
    an adequate mobilization base at strategic points for purposes of
    national defense and national emergency. The Secretary of
    Transportation, in connection with ship construction,
    reconstruction, reconditioning, or remodeling under this subchapter
    and subchapter VII of this chapter, upon a basis of a finding that
    the award of the proposed construction, reconstruction,
    reconditioning, or remodeling work will remedy an existing or
    impending inadequacy in such mobilization base as to the
    capabilities and capacities of a shipyard or shipyards at a
    strategic point, and after taking into consideration the benefits
    accruing from standardized construction, the conditions of
    unemployment, and the needs and reasonable requirements of all
    shipyards, may allocate such construction, reconstruction,
    reconditioning, or remodeling to such yard or yards in such manner
    as he may determine to be fair, just, and reasonable to all
    sections of the country, subject to the provisions of this
    subsection. In the allocation of construction work to such yards as
    herein provided, the Secretary of Transportation may, after first
    obtaining competitive bids for such work in compliance with the
    provisions of this chapter, negotiate with the bidders and with
    other shipbuilders concerning the terms and conditions of any
    contract for such work, and is authorized to enter into such
    contract at a price deemed by the Secretary of Transportation to be
    fair and reasonable. Any contract entered into by the Secretary of
    Transportation under the provisions of this subsection shall be
    subject to all of the terms and conditions of this chapter,
    excepting those pertaining to the awarding of contracts to the
    lowest bidder which are inconsistent with the provisions of this
    subsection. In the event that a contract is made providing for a
    price in excess of the lowest responsible bid which otherwise would
    be accepted, such excess shall be paid by the Secretary of
    Transportation as a part of the cost of national defense, and shall
    not be considered as a part of the construction-differential
    subsidy. In the event that a contract is made providing for a price
    lower than the lowest responsible bid which otherwise would be
    accepted, the construction-differential subsidy shall be computed
    on the contract price in lieu of such bid.
      If, as a result of allocation under this subsection, the
    purchaser incurs expenses for inspection and supervision of the
    vessel during construction and for the delivery voyage of the
    vessel in excess of the estimated expenses for the same services
    that he would have incurred if the vessel had been constructed by
    the lowest responsible bidder the Secretary of Transportation (with
    respect to construction under this subchapter, except section 1159
    of this Appendix) shall reimburse the purchaser for such excess,
    less one-half of any gross income the purchaser receives that is
    allocable to the delivery voyage minus one-half of the extra
    expenses incurred to produce such gross income, and such
    reimbursement shall not be considered part of the construction-
    differential subsidy: Provided, That no interest shall be paid on
    any refund authorized under this chapter. If the vessel is
    constructed under section 1159 of this Appendix the Secretary of
    Transportation shall reduce the price of the vessel by such excess,
    less one-half of any gross income (minus one-half of the extra
    expenses incurred to produce such gross income) the purchaser
    receives that is allocable to the delivery voyage. In the case of a
    vessel that is not to receive operating-differential subsidy, the
    delivery voyage shall be deemed terminated at the port where the
    vessel begins loading. In the case of a vessel that is to receive
    operating-differential subsidy, the delivery voyage shall be deemed
    terminated when the vessel begins loading at a United States port
    in an essential service. In either case, however, the vessel owner
    shall not be compensated for excess vessel delivery costs in an
    amount greater than the expenses that would have been incurred in
    delivering the vessel from the shipyard at which it was built to
    the shipyard of the lowest responsible bidder. If as a result of
    such allocation, the expenses the purchaser incurs with respect to
    such services are less than the expenses he would have incurred for
    such services if the vessel had been constructed by the lowest
    responsible bidder, the purchaser shall pay to the Secretary of
    Transportation an amount equal to such reduction and, if the vessel
    was built with the aid of construction-differential subsidy, such
    payment shall not be considered a reduction of the construction-
    differential subsidy.
    (g) Sale of vessels acquired by Secretary
      Upon the application of any citizen of the United States to
    purchase any vessel acquired by the Secretary of Transportation
    under the provisions of section 1125 of this Appendix, the
    Secretary of Transportation is authorized to sell such vessel to
    the applicant for the fair and reasonable value thereof, but at not
    less than the cost thereof to the Secretary of Transportation less
    depreciation at the rate of 4 per centum per annum from the date of
    completion, excluding the cost of national-defense features added
    by the Secretary of Transportation, less the equivalent of any
    applicable construction-differential subsidy as provided by
    subsection (b) of this section, such sale to be in accordance with
    all the provisions of this subchapter. Such vessel shall thereupon
    be eligible for an operating-differential subsidy under subchapter
    VI of this chapter, notwithstanding the provisions of section
    1171(a)(1), and section 1180(1) of this Appendix, or any other
    provision of law.
    (h) Installation or removal of national defense features; title to
      such features
      The Secretary of Transportation is authorized to construct,
    purchase, lease, acquire, store, maintain, sell, or otherwise
    dispose of national defense features intended for installation on
    vessels. The Secretary of Transportation is authorized to install
    or remove such national defense features on any vessel (1) which is
    in the National Defense Reserve Fleet as defined by section 1744(a)
    of the Appendix to title 50, (2) which is requisitioned, purchased,
    or chartered under section 1242 of this Appendix, (3) which serves
    as security for the guarantee of an obligation by the Secretary of
    Transportation under subchapter XI of this chapter, or (4) which is
    the subject of an agreement between the owner of such vessel and
    the Secretary of Transportation to install or remove such national
    defense features. Title to such national defense features which the
    Secretary of Transportation determines are not to be permanently
    incorporated in a vessel shall not be affected by such installation
    or removal unless otherwise transferred in accordance with the
    provisions of this subchapter.
    (i) Plans, specifications, and proposals for national defense
      features; certification of approval
      The Secretary of Transportation shall submit the plans and
    specifications for such national defense features and the proposals
    for their acquisition, storage, utilization, or disposition to the
    Navy Department for examination thereof and suggestion for such
    changes therein as may be deemed necessary or proper in order that
    such features shall be suitable for the use of the United States
    Government in time of war or national emergency. If the Secretary
    of the Navy approves such plans, specifications, or proposals as
    submitted, or as modified in accordance with the provisions of this
    subsection, he shall certify such approval to the Secretary of
    Transportation.

-SOURCE-
    (June 29, 1936, ch. 858, title V, Sec. 502, 49 Stat. 1996; June 23,
    1938, ch. 600, Secs. 9-14, 52 Stat. 955-957; Aug. 4, 1939, ch. 417,
    Sec. 6, 53 Stat. 1183; July 26, 1956, ch. 737, 70 Stat. 657; Pub.
    L. 86-518, Secs. 1, 2, June 12, 1960, 74 Stat. 216; Pub. L. 86-607,
    Sec. 1, July 7, 1960, 74 Stat. 362; Pub. L. 87-877, Secs. 1, 2(a),
    (e), (f), Oct. 24, 1962, 76 Stat. 1200, 1201; Pub. L. 88-370, July
    11, 1964, 78 Stat. 313; Pub. L. 88-410, Sec. 1, Aug. 10, 1964, 78
    Stat. 385; Pub. L. 89-127, Aug. 14, 1965, 79 Stat. 519; Pub. L. 89-
    589, Sept. 19, 1966, 80 Stat. 811; Pub. L. 90-572, Oct. 12, 1968,
    82 Stat. 1004; Pub. L. 91-40, July 8, 1969, 83 Stat. 44; Pub. L. 91-
    469, Secs. 7, 35(a), (e)-(g), Oct. 21, 1970, 84 Stat. 1019, 1035,
    1036; Pub. L. 91-603, Sec. 4(b), Dec. 31, 1970, 84 Stat. 1675; Pub.
    L. 93-71, July 10, 1973, 87 Stat. 169; Pub. L. 94-372, Secs. 2, 3,
    July 31, 1976, 90 Stat. 1042; Pub. L. 96-210, Mar. 17, 1980, 94
    Stat. 100; Pub. L. 96-387, Sec. 3, Oct. 7, 1980, 94 Stat. 1545;
    Pub. L. 97-31, Sec. 12(84), (85), Aug. 6, 1981, 95 Stat. 161.)

-MISC1-
                                AMENDMENTS                            
      1981 - Subsecs. (a), (b). Pub. L. 97-31, Sec. 12(84), substituted
    "Secretary of Transportation" for "Secretary of Commerce" wherever
    appearing.
      Subsec. (c). Pub. L. 97-31, Sec. 12(84), (85), substituted
    "Secretary of Transportation" for "Secretary of Commerce" wherever
    appearing, and "Secretary of Transportation's" for "Secretary of
    Commerce's".
      Subsecs. (e) to (i). Pub. L. 97-31, Sec. 12(84), substituted
    "Secretary of Transportation" for "Secretary of Commerce" wherever
    appearing.
      1980 - Subsec. (a). Pub. L. 96-210 struck out ", at any time
    prior to June 30, 1979," before "to accept a price for".
      Subsecs. (h), (i). Pub. L. 96-387 added subsecs. (h) and (i).
      1976 - Subsec. (a). Pub. L. 94-372, Sec. 2, in third sentence,
    substituted "at any time prior to June 30, 1979" for "at any time
    prior to June 30, 1976", struck out former par. (i) relating to a
    negotiated price resulting in a construction-differential subsidy
    equal to or less than 45%, 43%, 41%, 39%, 37% and 35% for fiscal
    years 1971, 1972, 1973, 1974, 1975 and 1976, respectively, and
    redesignated former pars. (ii), (iii), and (iv) as (1), (2), and
    (3), respectively.
      Subsec. (b). Pub. L. 94-372, Sec. 3, substituted provisions
    limiting the construction differential to 50% (excluding costs for
    national defense features), and allowing the Secretary, where such
    differential is exceeded, to contract with any bidder
    (notwithstanding section 1155) to reduce the differential to within
    such percentage for provisions limiting the differential to 55%
    except for passenger vessels having characteristics set forth in
    section 1153, which shall be 60%, limiting the differential after
    June 30, 1970 to 50%, permitting the Secretary to negotiate and
    contract with any bidder, regardless of section 1155 if in the
    years 1972, 1973, 1974, 1975 and 1976 a specified percentage is
    exceeded, prohibiting contracts commencing in 1972, where such
    differential exceeds such limits unless consideration has been
    given to the possibility that the commitment to ship construction
    programs may not be continued under existing limits, and requiring
    notification to the Commission on American Shipbuilding if the
    Secretary finds it necessary to enter into such contracts.
      1973 - Subsec. (a). Pub. L. 93-71 in third sentence, substituted
    "June 30, 1976" for "June 30, 1973" and limited vessel construction
    subsidy to 39 per centum in fiscal 1974, 37 per centum in fiscal
    1975, and 35 per centum in fiscal 1976.
      1970 - Pub. L. 91-469, Sec. 35(a), substituted "Secretary of
    Commerce" for "Commission", six times in subsec. (a), four times in
    subsec. (c), five times in subsec. (e), four times in subsec. (f),
    and four times in subsec. (g).
      Subsec. (a). Pub. L. 91-603 substituted "for the operation and
    maintenance of" for "to enable it to operate and maintain".
      Pub. L. 91-469, Secs. 7(1), 35(e), struck out in first sentence
    ", on behalf of the applicant," after "may secure", substituted in
    second sentence "proposed ship purchaser, the Secretary of
    Commerce" for "applicant, the Commission", inserted conditions
    precedent to acceptance of negotiated price for ship construction
    in fiscal years 1971, 1972, and 1973, including availability of
    shipyard records in connection therewith, substituted in last
    sentence "for the sale" for "with the applicant for the purchase by
    him" before "of such vessel", and authorized sale of vessel upon
    its completion to the applicant if he is the proposed ship
    purchaser and if not to another citizen, if the Secretary
    determines that such citizen possesses the necessary qualifications
    to enable it to operate and maintain the vessel; and substituted
    "he" for "it" before "may secure", respectively.
      Subsec. (b). Pub. L. 91-469, Sec. 7(2), provided for
    recomputation of estimated foreign cost annually, publication of
    notice to compute or recompute such estimated foreign cost, offer
    of opportunity to interested persons to file written statements,
    consideration of relevant matter so filed, explanation of basis of
    determination, prohibition commencing with fiscal year 1972 of
    construction contracts requiring construction-differential in
    excess of prescribed percentages unless there is no likelihood of
    attaining the percentages and the commitment to the ship
    construction program may not be continued, notice to Commission on
    American Shipbuilding of execution of such a contract, and
    submission of a Commission report on the American shipbuilding
    industry within six months of the notice, substituted "may equal"
    for "shall equal", "construction of that type vessel" for
    "construction of the proposed vessel", "exceeds the following
    percentages: in fiscal year 1971, 45 per centum; in fiscal year
    1972, 43 per centum; in fiscal year 1973, 41 per centum; in fiscal
    year 1974, 39 per centum; in fiscal year 1975, 37 per centum; in
    fiscal year 1976 and thereafter, 35 per centum" for "in any case
    exceeds the foregoing applicable percentage of such cost", and
    "with such bidder, notwithstanding the provisions of the first
    sentence of section 1155 of this Appendix with respect to
    competitive bidding," for "on behalf of the applicant", and
    inserted "with any bidder, whether or not such bidder is the lowest
    bidder," after "the Secretary may negotiate" and ", or as close
    thereto as possible" before "or less".
      Subsec. (c). Pub. L. 91-469, Secs. 7(3), 35(f), inserted "of
    sale" after introductory phrase "In such contract", in revising
    interest rate substituted provision for a rate not less than a rate
    determined by the Secretary of the Treasury, taking into
    consideration the current average market yield on outstanding
    marketable obligations of the United States with remaining periods
    to maturity comparable to the average maturities of such loans,
    adjusted to the nearest one-eighth of 1 per centum plus an
    administrative cost allowance for prior rate of 3 1/2  per centum
    per annum, substituted in last sentence "rate per annum applicable
    to payments that are chargeable to the purchaser's portion of the
    price of the vessel" for "rate of 3 1/2  per centum per annum",
    "purchaser" for "applicant" in six places, "purchaser's portion of
    the price" for "applicant's purchase price", and "purchaser's" for
    "applicant's"; and substituted "Secretary of Commerce's" for
    "Commission's", respectively.
      Subsec. (e). Pub. L. 91-469, Secs. 7(4), 35(g), substituted "a
    citizen of the United States" for "the applicant" in first sentence
    and for "an applicant" in third sentence and "his" for "its" in
    second sentence, respectively.
      Subsec. (f). Pub. L. 91-469, Sec. 7(5), in first par.,
    substituted "this subchapter and subchapter VII of this chapter"
    for "subchapter VII of this chapter and section 1159 of this
    Appendix, and the Federal Maritime Board, in connection with ship
    construction, reconstruction, or reconditioning under this
    subchapter (except section 1159 of this Appendix)," and "in such
    manner as he may determine" for "in such manner as it may be
    determined" in second sentence; and in second par., substituted
    "purchaser" for "applicant" in six places and "United States port
    in an essential service" for "United States port on any essential
    service of the operator" in fourth sentence.
      Subsec. (g). Pub. L. 91-469, Sec. 7(6), substituted "application"
    and "any citizen of the United States" for "agreement" and "an
    applicant under this subchapter" in first sentence.
      1969 - Subsec. (b). Pub. L. 91-40 substituted "June 30, 1970" for
    "June 30, 1969".
      1968 - Subsec. (b). Pub. L. 90-572 substituted "June 30, 1969"
    for "June 30, 1968".
      1966 - Subsec. (b). Pub. L. 89-589 substituted "June 30, 1968"
    for "June 30, 1966".
      1965 - Subsec. (b). Pub. L. 89-127 substituted "June 30, 1966"
    for "June 30, 1965".
      1964 - Subsec. (b). Pub. L. 88-370 substituted "June 30, 1965"
    for "June 30, 1964".
      Subsec. (f). Pub. L. 88-410 provided for reimbursement of
    expenses incurred during construction and the delivery voyage of a
    vessel, if as a result of allocation under this subsection, they
    are in excess of the estimated expenses that would have been
    incurred if the vessel had been constructed by the lowest
    responsible bidder, less one-half of any gross income allocable to
    the delivery voyage, minus one-half the extra expenses incurred to
    produce such income, and that such reimbursement shall not be part
    of the construction-differential subsidy, that no interest be paid
    on any refund authorized, that if the vessel is constructed under
    section 1159 the price of the vessel is to be reduced by such
    excess expenses less such gross income, calculated as above,
    obtained on the delivery voyage, that if the vessel is not to
    receive the operating-differential subsidy the delivery voyage
    shall be deemed terminated at the port where the vessel begins
    loading, and if it does receive the subsidy, when the vessel begins
    loading at a United States port on any essential service of the
    operator, but in either case there is to be no compensation greater
    than the expenses that would have been incurred in delivering the
    vessel from the shipyard at which it was built to the one of the
    lowest bidder, that if the allocation results in a saving of
    expenses for the applicant, the applicant shall pay an equal amount
    to the Secretary, and if the vessel was built with the subsidy,
    such payment shall not be considered a reduction of the subsidy.
      1962 - Subsec. (b). Pub. L. 87-877, Sec. 1, among other changes,
    substituted references to the Secretary, for references to the
    Federal Maritime Board, wherever appearing, and provided that in
    the reconstruction or reconditioning of a passenger vessel having
    the characteristics set forth in section 1153 of this Appendix, the
    construction differential shall not exceed 60 per centum of the
    cost, excluding national defense features, however, after June 30,
    1964, the construction differential approved by the Secretary for
    any vessel shall not exceed 50 per centum of such cost.
      Subsec. (d). Pub. L. 87-877, Sec. 2(a), repealed subsec. (d)
    which provided for giving a preference to Pacific coast bidders in
    obtaining a subsidy and specified the conditions to be met
    therefor.
      Subsec. (f). Pub. L. 87-877, Sec. 2(e), (f), substituted "at
    least once each year" for "periodically", "existing or impending
    inadequacy" for "existing inadequacy", and struck out ", with the
    approval of the President," before "allocate such construction".
      1960 - Subsec. (b). Pub. L. 86-607, Sec. 1(1), increased the
    limitation on construction differential from 50 to 55 per centum of
    the construction cost of a vessel and provided for such percentage
    limitation in lieu of former 33 1/3  per centum of construction
    cost, increased to 50 per centum on affirmative vote of two Board
    members.
      Subsec. (c). Pub. L. 86-518, Sec. 1, substituted "twenty-five"
    for "twenty" in two places.
      Subsec. (d). Pub. L. 86-607, Sec. 1(2), increased the limitation
    on construction-differential from 50 to 55 per centum of the
    construction cost of a vessel.
      Subsec. (g). Pub. L. 86-518, Sec. 2, substituted "at the rate of
    4 per centum per annum" for "based on a twenty-year life
    expectancy".
      1956 - Subsec. (f). Act July 26, 1956, substituted provisions
    that required Secretary of Commerce, with advice of Secretary of
    the Navy, to make periodic survey of privately owned shipyards to
    determine adequacy for providing mobilization base, and that any
    inadequacies would be corrected by Secretary of Commerce or Federal
    Maritime Board with the approval of the President by allocating
    work to such yards, for former provisions allowing periodic survey
    by the Federal Maritime Board of both Navy and privately owned
    shipyards.
      1939 - Subsec. (b). Act Aug. 4, 1939, substituted "a foreign
    shipbuilding center which is deemed by the Commission to furnish a
    fair and representative example for the determination of the
    estimated foreign cost of construction of vessels of the type
    proposed to be constructed" for "a principal foreign shipbuilding
    center which may reasonably be availed of by the principal foreign
    competitors in the service in which the vessel is to be operated,
    and which is deemed by the Commission to furnish a fair and
    representative example for the determination of the estimated cost
    of construction in foreign countries of vessels of the type
    proposed to be constructed".
      1938 - Subsec. (a). Act June 23, 1938, Sec. 9, substituted "of
    the contract price of the vessel" for "the cost of the vessel".
      Subsec. (b). Act June 23, 1938, Sec. 10, permitted negotiations
    and contracts to build vessels in domestic shipyards in cases where
    the construction differential exceeds 33 1/3  per centum or 50 per
    centum of the cost, and to require a report where there is reason
    to believe that the bidding is collusive.
      Subsec. (c). Act June 23, 1938, Sec. 11, among other changes,
    substituted "of not less than 25 per centum of the price at which
    the vessel is sold to the applicant" for "a sum equal to 25 per
    centum of the construction cost of the vessel paid by the
    Commission (excluding cost of national-defense features as above
    provided)", and required the applicant to pay, not less frequently
    than annually, interest at the rate of 3 1/2  per centum per annum
    on those portions of payments made to the shipbuilder which are
    chargeable to the applicant's purchase price of the vessel (after
    deduction of the applicant's cash payments).
      Subsec. (d). Act June 23, 1938, Sec. 12, substituted
    "construction-differential subsidy" for "construction subsidy", and
    inserted provisions relating to limitation on approval of
    construction-differential in excess of 50 per centum of the
    construction cost of the vessel paid by the Commission.
      Subsec. (f). Act June 23, 1938, Sec. 13, added subsec. (f).
      Subsec. (g). Act June 23, 1938, Sec. 14, added subsec. (g).

                     EFFECTIVE DATE OF 1962 AMENDMENT                 
      Section 5 of Pub. L. 87-877 provided that: "The amendment made by
    the first section of this Act [amending this section] shall be
    effective only with respect to contracts entered into with respect
    to (a) the construction of a vessel the keel of which was laid
    after June 30, 1959, or (b) the reconstruction or reconditioning of
    a vessel the shipyard contract for which was entered into after
    June 30, 1959, and the Secretary may, with the consent of the
    parties thereto, modify any such contract entered into prior to the
    date of the enactment of this Act [Oct. 24, 1962] to the extent
    authorized by the amendment made by this Act."

                     EFFECTIVE DATE OF 1960 AMENDMENTS                 
      Section 2 of Pub. L. 86-607, as amended by Pub. L. 87-222, Sept.
    13, 1961, 75 Stat. 494, provided that: "The amendment made by this
    Act [amending this section] shall be effective only with respect to
    any contract entered into not later than two years after the date
    of enactment of this Act [July 7, 1960] under the provisions of
    section 502 of the Merchant Marine Act, 1936 [this section], with
    respect to (a) the construction of a vessel the keel of which was
    laid, or (b) the reconstruction or reconditioning of a vessel the
    shipyard contract for which was entered into after June 30, 1959,
    and the Federal Maritime Board may, with the consent of the parties
    thereto, modify any such contract entered into prior to the date of
    enactment of the first amendment to Public Law 86-607 (74 Stat.
    362) [Sept. 13, 1961], to the extent authorized by the amendment
    made by this Act, as amended."
      Amendment by Pub. L. 86-518 applicable only to vessels delivered
    by the shipbuilder on or after Jan. 1, 1946, and with respect to
    such vessels shall become effective on Jan. 1, 1960, and with
    respect to vessels delivered by the shipbuilder before Jan. 1,
    1946, the provisions of this chapter existing immediately before
    June 12, 1960, shall continue in effect, see section 8(a) of Pub.
    L. 86-518, set out as a note under section 1125 of this Appendix.

                   MODIFICATION OF CONTRACTS; CONDITIONS               
      Section 2 of Pub. L. 88-410 provided that: "The amendment made by
    this Act [amending this section] shall be effective with respect to
    any contract entered into under the provisions of section 502 of
    the Merchant Marine Act, 1936, as amended [this section], and the
    Secretary of Commerce shall, with the consent of the other parties
    thereto, modify any such contract entered into prior to the date of
    the enactment of this Act [Aug. 10, 1964] to the extent authorized
    by the amendment made by this Act, except that the Secretary shall
    not agree to any such modification which would result in a payment
    by the United States unless, within one year after enactment of
    this Act, application is made for such modification. No payment
    shall be made by the Secretary under the provisions of the
    amendment made by this Act with respect to any contract entered
    into after the date of enactment of this Act unless the recipient
    of such payment has agreed to the modification of any contract
    which was entered into prior to the date of enactment of this Act
    and to which such recipient was a party, and which, if modified
    under the authority of this section, would result in a payment to
    the United States."

    CONTRACTS FOR NEW SHIP CONSTRUCTION AWARDED ON BIDS OPENED PRIOR TO
                             OCTOBER 24, 1962
      Section 2(a) of Pub. L. 87-877 provided in part: "That the repeal
    of subsection (d) of section 502 of the Merchant Marine Act, 1936
    [subsec. (d) of this section], shall not be effective with respect
    to contracts for new ship construction under title V of said Act
    [this subchapter] awarded on the basis of bids opened prior to the
    date of the enactment of this Act. [Oct. 24, 1962]."

      RATE OF DEPRECIATION FOR VESSELS DELIVERED BY SHIPBUILDER ON OR
             AFTER JANUARY 1, 1946, AND BEFORE JANUARY 1, 1960
      For provisions relating to computation of depreciation with
    respect to vessels delivered by the shipbuilder on or after Jan. 1,
    1946, and before Jan. 1, 1960, see section 8(b) of Pub. L. 86-518,
    set out as a note under section 1125 of this Appendix.

    REVISION OF CONTRACTS, COMMITMENTS TO INSURE MORTGAGES, MORTGAGES,
      AND MORTGAGE INSURANCE CONTRACTS ENTERED INTO PRIOR TO JUNE 12,
                                   1960
      For provisions authorizing revision, see section 8(c) of Pub. L.
    86-518, set out as a note under section 1125 of this Appendix.

      COMMERCIAL EXPECTANCY OR PERIOD OF DEPRECIATION OF TANKERS AND
                        OTHER LIQUID BULK CARRIERS
      Nothing in any amendment made by Pub. L. 86-518 to operate or be
    interpreted to change from 20 to 25 years the provisions of this
    chapter relating to the commercial expectancy or period of
    depreciation of any tanker or other liquid bulk carrier, see
    section 9 of Pub. L. 86-518, set out as a note under section 1125
    of this Appendix.

           CONSTRUCTION AND SALE OF SUPERLINER PASSENGER VESSELS       
      Pub. L. 85-521, July 15, 1958, 72 Stat. 359, provided: "That it
    is necessary, in order to carry out the merchant marine policy
    declared in the Merchant Marine Act, 1936, as amended [this
    chapter], to have (a) a superliner passenger vessel equivalent to
    the steamship United States, to replace the steamship America for
    operation on an essential trade route in the North Atlantic, and
    (b) a superliner passenger vessel with capacity of approximately
    one thousand four hundred passengers for operation on an essential
    trade route in the Pacific Ocean. Nothing herein shall preclude the
    operation of either of these vessels in other areas, subject to the
    approval of the Federal Maritime Board. There is hereby authorized
    to be appropriated to the Department of Commerce such sums as may
    be necessary, to remain available until expended, for the
    construction, outfitting, and equipping of such vessels.
      "Sec. 2. Concurrently with entering into contracts with
    shipbuilders for the construction of said vessels, the Board is
    authorized to enter into contracts for the sale of the vessels,
    fully outfitted and equipped, upon their completion, (a) with
    respect to the superliner passenger vessel equivalent to the
    steamship United States, to the United States Lines Company, for
    the fixed price of $47,000,000, and (b) with respect to the
    superliner passenger vessel for operation in the Pacific Ocean, to
    the American President Lines, Limited, for the fixed price of
    $34,000,000, or 45 per centum of the domestic construction cost of
    the vessel fully outfitted and equipped (excluding national defense
    features and escalation) whichever is the greater. The sales prices
    stated herein shall include the cost of stabilizers, all outfit and
    equipment not covered by the shipbuilders' bids, customary
    architects' and interior decorators' fees for design, inspection
    during construction, and all escalation provided for in the
    shipbuilders' bids: Provided, however, That such prices shall be
    increased in an amount equal to 45 per centum of any net change in
    the cost of the vessels (other than national defense features)
    arising out of any changes in the bid specifications approved by
    the Federal Maritime Board or any changes in the usual outfitting
    and equipping of the vessels if such changes are requested by the
    purchasers and approved by the Federal Maritime Board after the
    enactment hereof. Terms and conditions of payment of the purchase
    price shall be as provided for in sections 502(c) and 503 of the
    Merchant Marine Act, 1936, as amended [sections 1152(c) and 1153 of
    this Appendix]. In order that such construction of the superliner
    passenger vessel equivalent to the steamship United States may be
    accomplished promptly, the Federal Maritime Board, in its
    discretion, may have such a vessel constructed, without further
    bidding, under outstanding bids which have hitherto been made by
    United States shipbuilders on a similar vessel.
      "Sec. 3. Except as otherwise provided in this Act, the
    construction and sale of the superliner passenger vessels
    authorized by this Act shall be in accordance with the provisions
    of the Merchant Marine Act, 1936, as amended [this chapter].
      "Sec. 4. For the purposes of this Act the words 'construction
    differential subsidy' used in the Merchant Marine Act, 1936, as
    amended [this chapter], shall mean the difference between the sales
    price paid by the purchaser hereunder and the cost of the vessel
    (less national defense features) including the cost of stabilizers,
    all outfit and equipment not covered by the shipbuilders' bids,
    customary architects' and interior decorators' fees for design,
    inspection during construction, and all escalation provided for in
    the shipbuilders' bids.
      "Sec. 5. Any contract for an operating differential subsidy on
    the operation of a vessel constructed and sold under this Act shall
    be subject to the provisions of title VI of the Merchant Marine
    Act, 1936, as amended [subchapter VI of this chapter]: Provided,
    however, That such contract shall provide that, if at the end of
    any recapture period, the net profits on the operation of such
    vessel for such recapture period, computed without regard to
    profits or losses on other vessels operated by the contractor,
    exceed 10 per centum per annum on a cumulative basis upon the
    contractor's capital necessarily employed in the operation of such
    vessel, as determined by the Federal Maritime Board, the contractor
    shall account to the United States for an amount equal to 75 per
    centum of such excess profits."

-End-

-CITE-
    46 USC APPENDIX Sec. 1153                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER V - CONSTRUCTION-DIFFERENTIAL SUBSIDY

-HEAD-
    Sec. 1153. Documentation of completed vessel under laws of United
      States; delivery to purchaser; first mortgage to secure deferred
      payments

-STATUTE-
      Upon completion of the construction of any vessel in respect to
    which a construction-differential subsidy is to be allowed under
    this subchapter and its delivery by the shipbuilder to the
    Secretary of Transportation, the vessel shall be documented under
    the laws of the United States, and concurrently therewith, or as
    soon thereafter as practicable, the vessel shall be delivered with
    a bill of sale to the purchaser with warranty against liens,
    pursuant to the contract of sale between the purchaser and the
    Secretary of Transportation. The vessel shall remain documented
    under the laws of the United States for not less than twenty-five
    years, or so long as there remains due the United States any
    principal or interest on account of the purchaser price, whichever
    is the longer period. At the time of delivery of the vessel the
    purchaser shall execute and deliver a first-preferred mortgage to
    the United States to secure payment of any sums due from the
    purchaser in respect to said vessel: Provided, That notwithstanding
    any other provisions of law, the payment of any sums due in respect
    to a passenger vessel purchased under section 1737(b) (!1) of the
    Appendix to title 50, reconverted or restored for normal operation
    in commercial services, or in respect to a passenger vessel
    purchased under subchapter V of this chapter, which is delivered
    subsequent to March 8, 1946, and which (i) is of not less than ten
    thousand gross tons, (ii) has a designed speed approved by the
    Secretary of Transportation but not less than eighteen knots, (iii)
    has accommodations for not less than two hundred passengers, and,
    (iv) is approved by the Secretary of Defense as being desirable for
    national defense purposes, may, with the approval of the Secretary
    of Transportation be secured only by a first-preferred mortgage on
    said vessel. With the approval of the Secretary of Transportation,
    such preferred mortgage may provide that the sole recourse against
    the purchaser of such a passenger vessel under such mortgage, and
    any of the notes secured thereby, shall be limited to repossession
    of the vessel by the United States and the assignment of insurance
    claims, if the purchaser shall have complied with all provisions of
    the mortgage other than those relating to the payment of principal
    and interest when due, and the obligation of the purchaser shall be
    satisfied and discharged by the surrender of the vessel, and all
    right, title, and interest therein to the United States. Such
    vessel upon surrender shall be (i) free and clear of all liens and
    encumbrances whatsoever, except the lien of the preferred mortgage,
    (ii) in class, and (iii) in as good order and condition, ordinary
    wear and tear excepted, as when acquired by the purchaser, except
    that any deficiencies with respect to freedom from encumbrances,
    condition, and class, may, to the extent covered by valid policies
    of insurance, be satisfied by the assignment to the United States
    of claims of the purchaser under such policies of insurance. The
    purchaser shall also comply with all the provisions of section 868
    of this Appendix.

-SOURCE-
    (June 29, 1936, ch. 858, title V, Sec. 503, 49 Stat. 1997; June 23,
    1938, ch. 600, Sec. 15, 52 Stat. 957; July 17, 1952, ch. 939, Sec.
    3, 66 Stat. 761; Pub. L. 86-518, Sec. 1, June 12, 1960, 74 Stat.
    216; Pub. L. 91-469, Secs. 8, 35(a), Oct. 21, 1970, 84 Stat. 1021,
    1035; Pub. L. 97-31, Sec. 12(84), Aug. 6, 1981, 95 Stat. 161.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 1737 of the Appendix to title 50, referred to in text,
    was repealed by Pub. L. 101-225, title III, Sec. 307(12), Dec. 12,
    1989, 103 Stat. 1925.

-MISC1-
                                AMENDMENTS                            
      1981 - Pub. L. 97-31 substituted "Secretary of Transportation"
    for "Secretary of Commerce" wherever appearing.
      1970 - Pub. L. 91-469 substituted "purchaser" for "applicant" in
    three places, "sale between the purchaser and the Secretary of
    Commerce" for "purchase between the applicant and the Commission"
    in first sentence; and "Secretary of Commerce" for "Commission", in
    four places, respectively.
      1960 - Pub. L. 86-518 substituted "twenty-five years" for "twenty
    years".
      1952 - Act July 17, 1952, amended section to provide that as to
    passenger vessels delivered after Mar. 8, 1946, the balance of the
    payments shall be secured by a first preferred mortgage, that the
    purchasers' obligation to pay will be discharged by surrender of
    the vessel and all rights to the Government, and to set up
    conditions governing type of vessel.
      1938 - Act June 23, 1938, amended section generally, substituting
    "construction-differential subsidy" for "construction subsidy", and
    "or so long as there remains due" for "and so long as there remains
    due".

                     EFFECTIVE DATE OF 1960 AMENDMENT                 
      Amendment by Pub. L. 86-518 applicable only to vessels delivered
    by the shipbuilder on or after Jan. 1, 1946, and with respect to
    such vessels shall become effective on Jan. 1, 1960, and with
    respect to vessels delivered by the shipbuilder before Jan. 1,
    1946, the provisions of this chapter existing immediately before
    June 12, 1960, shall continue in effect, see section 8(a) of Pub.
    L. 86-518, set out as a note under section 1125 of this Appendix.

    REVISION OF CONTRACTS, COMMITMENTS TO INSURE MORTGAGES, MORTGAGES,
      AND MORTGAGE INSURANCE CONTRACTS ENTERED INTO PRIOR TO JUNE 12,
                                   1960
      For provisions authorizing revision, see section 8(c) of Pub. L.
    86-518, set out as a note under section 1125 of this Appendix.

      COMMERCIAL EXPECTANCY OR PERIOD OF DEPRECIATION OF TANKERS AND
                        OTHER LIQUID BULK CARRIERS
      Nothing in any amendment made by Pub. L. 86-518 to operate or be
    interpreted to change from 20 to 25 years the provisions of this
    chapter relating to the commercial expectancy or period of
    depreciation of any tanker or other liquid bulk carrier, see
    section 9 of Pub. L. 86-518, set out as a note under section 1125
    of this Appendix.

-FOOTNOTE-
    (!1) See References in Text note below.

-End-

-CITE-
    46 USC APPENDIX Sec. 1154                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER V - CONSTRUCTION-DIFFERENTIAL SUBSIDY

-HEAD-
    Sec. 1154. Purchase of vessel constructed in accordance with
      application for subsidy; bid or negotiated price basis for
      subsidy and payments for cost of national defense features;
      documentation

-STATUTE-
      If a qualified purchaser under the terms of this subchapter
    desires to purchase a vessel to be constructed in accordance with
    an application for construction-differential subsidy under this
    subchapter, the Secretary of Transportation may, in lieu of
    contracting to pay the entire cost of the vessel under section 1152
    of this Appendix, contract to pay only construction-differential
    subsidy and the cost of national defense features to the shipyard
    constructing such vessel. The construction-differential subsidy and
    payments for the cost of national defense features shall be based
    upon the lowest responsible domestic bid unless the vessel is
    constructed at a negotiated price as provided by section 1152(a) of
    this Appendix or under a contract negotiated by the Secretary of
    Transportation as provided in section 1152(b) of this Appendix in
    which event the construction-differential subsidy and payments for
    the cost of national defense features shall be based upon such
    negotiated price. No construction-differential subsidy, as provided
    in this section, shall be paid unless the said contract or
    contracts or other arrangements contain such provisions as are
    provided in this subchapter to protect the interests of the United
    States as the Secretary of Transportation deems necessary. Such
    vessel shall be documented under the laws of the United States as
    provided in section 1153 of this Appendix. The contract of sale,
    and the mortgage given to secure the payment of the unpaid balance
    of the purchase price, shall not restrict the lawful or proper use
    or operation of the vessel, except to the extent expressly required
    by law.

-SOURCE-
    (June 29, 1936, ch. 858, title V, Sec. 504, 49 Stat. 1998; June 23,
    1938, ch. 600, Sec. 16, 52 Stat. 958; July 17, 1952, ch. 939, Sec.
    4, 66 Stat. 761; Pub. L. 91-469, Secs. 9, 35(a), Oct. 21, 1970, 84
    Stat. 1021, 1035; Pub. L. 97-31, Sec. 12(84), Aug. 6, 1981, 95
    Stat. 161.)

-MISC1-
                                AMENDMENTS                            
      1981 - Pub. L. 97-31 substituted "Secretary of Transportation"
    for "Secretary of Commerce" wherever appearing.
      1970 - Pub. L. 91-469, provided a negotiated price as an
    alternative basis for payment of subsidy and cost of national
    defense features, and substituted "Secretary of Commerce" for
    "Commission", respectively.
      1952 - Act July 17, 1952, inserted provision that the lawful or
    proper use of the vessel may not be restricted.
      1938 - Act June 23, 1938, substituted "domestic shipyards" for
    "American shipyards", struck out "and if it is the lowest bid"
    after "fair and reasonable", and changed "construction subsidy" to
    "construction-differential subsidy".

-End-

-CITE-
    46 USC APPENDIX Sec. 1155                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER V - CONSTRUCTION-DIFFERENTIAL SUBSIDY

-HEAD-
    Sec. 1155. Eligible shipyards; materials; conditions of contracts;
      limitation to American shipyards; American materials, waiver;
      ability of bidders; filing bids and data

-STATUTE-
      All construction in respect of which a construction-differential
    subsidy is allowed under this subchapter shall be performed in a
    shipyard of the United States as the result of competitive bidding,
    after due advertisement, with the right reserved in the Secretary
    of Transportation to disapprove, any or all bids. In all such
    construction the shipbuilder, subcontractors, materialmen, or
    suppliers shall use, so far as practicable, only articles,
    materials, and supplies of the growth, production, or manufacture
    of the United States as defined in paragraph K (!1) of section 1401
    of title 19; Provided, however, That with respect to other than
    major components of the hull, superstructure, and any material used
    in the construction thereof, (1) if the Secretary of Transportation
    determines that the requirements of this sentence will unreasonably
    delay completion of any vessel beyond its contract delivery date,
    and (2) if such determination includes or is accompanied by a
    concise explanation of the basis therefor, then the Secretary of
    Transportation may waive such requirements to the extent necessary
    to prevent such delay. No shipbuilder shall be deemed a responsible
    bidder unless he possesses the ability, experience, financial
    resources, equipment, and other qualifications necessary properly
    to perform the proposed contract. Each bid submitted to the
    Secretary of Transportation shall be accompanied by all detailed
    estimates upon which it is based. The Secretary of Transportation
    may require that the bids of any subcontractors, or other pertinent
    data, accompany such bid. All such bids and data relating thereto
    shall be kept on file until disposed of as provided by law. For the
    purposes of this subchapter V, the term "shipyard of the United
    States" means shipyards within any of the United States and the
    Commonwealth of Puerto Rico.

-SOURCE-
    (June 29, 1936, ch. 858, title V, Sec. 505, 49 Stat. 1998; June 23,
    1938, ch. 600, Secs. 17, 40(a), 52 Stat. 958, 964; Oct. 25, 1951,
    ch. 562, Sec. 3(4), 65 Stat. 639; Pub. L. 86-624, Sec. 35(a), July
    12, 1960, 74 Stat. 421; Pub. L. 91-469, Secs. 10, 35(a), Oct. 21,
    1970, 84 Stat. 1022, 1035; Pub. L. 97-31, Sec. 12(84), Aug. 6,
    1981, 95 Stat. 161.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Paragraph K of section 1401 of title 19, referred to in text,
    which was classified to par. (k) of section 1401 of Title 19,
    Customs Duties, was redesignated par. (h) of section 1401 of Title
    19 by Pub. L. 91-271, title III, Sec. 301(c)(1), June 2, 1970, 84
    Stat. 288.

-MISC1-
                                AMENDMENTS                            
      1981 - Pub. L. 97-31 substituted "Secretary of Transportation"
    for "Secretary of Commerce" wherever appearing.
      1970 - Pub. L. 91-469 struck out subsec. (a) designation, struck
    out of first sentence "within the continental limits" and "the
    applicant to reject, and in" after "shipyard" and "right reserved
    in", provided for waiver of use of American materials, substituted
    definition of "shipyard of the United States" for definition of
    "continental limits of the United States", and struck out: subsec.
    (b) provisions for conditions of contracts, reports as to costs and
    net profits, limitation on profit, payment to Secretary of excess
    profit, subdivision of contracts, inspection of records and
    premises, and contracts for scientific equipment; subsec. (c)
    provisions as to method of determining profit and limitation on
    salaries; subsec. (d) provisions for utilization of Treasury
    Department employees; and subsec. (e) provisions for rescinding
    approval of bid on refusal of bidder to comply with conditions, new
    bids, and construction in navy yards; and substituted "Secretary of
    Commerce" for "Commission" in three places, respectively.
      1960 - Subsec. (a). Pub. L. 86-624 inserted definition of
    "continental limits of the United States."
      1951 - Subsec. (a). Act Oct. 25, 1951, substituted "on file until
    disposed of as provided by law" for "permanently on file" in last
    sentence.
      1938 - Subsec. (a). Act June 23, 1938, Sec. 40(a), substituted
    "construction-differential subsidy is allowed" for "subsidy is
    allowed".
      Subsec. (b). Act June 23, 1938, Sec. 17, made section
    inapplicable to contracts or other arrangements entered into under
    this subchapter by the terms of which the United States undertakes
    to pay only for national-defense features.

-FOOTNOTE-
    (!1) See References in Text note below.

-End-

-CITE-
    46 USC APPENDIX Sec. 1156                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER V - CONSTRUCTION-DIFFERENTIAL SUBSIDY

-HEAD-
    Sec. 1156. Operation of subsidy constructed vessel limited to
      foreign trade; repayments to Secretary for deviations

-STATUTE-
      Every owner of a vessel for which a construction-differential
    subsidy has been paid shall agree that the vessel shall be operated
    exclusively in foreign trade, or on a round-the-world voyage, or on
    a round voyage from the west coast of the United States to a
    European port or ports which includes intercoastal ports of the
    United States, or a round voyage from the Atlantic coast of the
    United States to the Orient which includes intercoastal ports of
    the United States, or on a voyage in foreign trade on which the
    vessel may stop at the State of Hawaii, or an island possession or
    island territory of the United States, and that if the vessel is
    operated in the domestic trade on any of the above-enumerated
    services, he will pay annually to the Secretary of Transportation
    that proportion of one-twenty-fifth of the construction-
    differential subsidy paid for such vessel as the gross revenue
    derived from the domestic trade bears to the gross revenue derived
    from the entire voyages completed during the preceding year. The
    Secretary may consent in writing to the temporary transfer of such
    vessel to service other than the service covered by such agreement
    for periods not exceeding six months in any year, whenever the
    Secretary may determine that such transfer is necessary or
    appropriate to carry out the purposes of this chapter. Such consent
    shall be conditioned upon the agreement by the owner to pay to the
    Secretary, upon such terms and conditions as he may prescribe, an
    amount which bears the same proportion to the construction-
    differential subsidy paid by the Secretary as such temporary
    period bears to the entire economic life of the vessel. No
    operating-differential subsidy shall be paid for the operation of
    such vessel for such temporary period.

-SOURCE-
    (June 29, 1936, ch. 858, title V, Sec. 506, 49 Stat. 1999; June 23,
    1938, ch. 600, Sec. 18, 52 Stat. 958; Mar. 18, 1959, Pub. L. 86-3,
    Sec. 18(b)(1), 73 Stat. 12; Pub. L. 86-518, Sec. 3, June 12, 1960,
    74 Stat. 216; Pub. L. 97-31, Sec. 12(87), Aug. 6, 1981, 95 Stat.
    161.)

-MISC1-
                                AMENDMENTS                            
      1981 - Pub. L. 97-31 substituted "Secretary of Transportation"
    for "Commission" the first time it appeared and "Secretary" for
    "Commission" the next four times it appeared. For prior transfers
    of functions of the Commission, meaning the United States Maritime
    Commission, see Transfer of Functions note below.
      1960 - Pub. L. 86-518 substituted "one-twenty-fifth" for "one-
    twentieth".
      1959 - Pub. L. 86-3 included stops at the State of Hawaii for
    vessels operated on voyages in foreign trade.
      1938 - Act June 23, 1938, made changes in phraseology and
    substituted "construction-differential subsidy" for "construction
    subsidy".

                     EFFECTIVE DATE OF 1960 AMENDMENT                 
      Amendment by Pub. L. 86-518 applicable only to vessels delivered
    by the shipbuilder on or after Jan. 1, 1946, and with respect to
    such vessels shall become effective on Jan. 1, 1960, and with
    respect to vessels delivered by the shipbuilder before Jan. 1,
    1946, the provisions of this chapter existing immediately before
    June 12, 1960, shall continue in effect, see section 8(a) of Pub.
    L. 86-518, set out as a note under section 1125 of this Appendix.

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      For transfer of functions of United States Maritime Commission,
    see Reorg. Plan No. 6 of 1949, Reorg. Plan No. 21 of 1950, and
    Reorg. Plan No. 7 of 1961, set out under section 1111 of this
    Appendix.

-MISC2-
    REVISION OF CONTRACTS, COMMITMENTS TO INSURE MORTGAGES, MORTGAGES,
      AND MORTGAGE INSURANCE CONTRACTS ENTERED INTO PRIOR TO JUNE 12,
     1960, AMENDMENT OF CONTRACTS DEALING WITH VESSELS HAVING EXTENDED
                                   LIFE
      For provisions authorizing revision and amendment of certain
    contracts, see section 8(c) of Pub. L. 86-518, as amended, set out
    as a note under section 1125 of this Appendix.

      COMMERCIAL EXPECTANCY OR PERIOD OF DEPRECIATION OF TANKERS AND
                        OTHER LIQUID BULK CARRIERS
      Nothing in any amendment made by Pub. L. 86-518 to operate or be
    interpreted to change from 20 to 25 years the provisions of this
    chapter relating to the commercial expectancy or period of
    depreciation of any tanker or other liquid bulk carrier, see
    section 9 of Pub. L. 86-518, set out as a note under section 1125
    of this Appendix.

-End-

-CITE-
    46 USC APPENDIX Sec. 1157                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER V - CONSTRUCTION-DIFFERENTIAL SUBSIDY

-HEAD-
    Sec. 1157. Construction of new vessel to replace obsolete; purchase
      of old vessel by Secretary; bond of seller against liens

-STATUTE-
      If a contract is made by the Secretary of Transportation under
    authority of this subchapter for the construction and sale of a new
    vessel to replace a vessel then operated in foreign trade or
    domestic trade, which in the judgment of the Secretary of
    Transportation should be replaced because it is obsolete or
    inadequate for successful operation in such trade, the Secretary of
    Transportation is authorized, in his discretion, to buy such
    replaced vessel from the owner at a fair and reasonable valuation,
    which valuation shall not exceed the cost to the owner or any
    former owner plus the actual cost previously expended thereon for
    reconditioning, and less a reasonable and proper depreciation,
    based upon not more than twenty-five-year life of the vessel, and
    apply the purchase price agreed upon to that portion of the
    construction cost of such new vessel which is to be borne by the
    purchaser thereof: Provided, That the owner of such replaced vessel
    shall execute a bond, with one or more approved sureties,
    conditioned upon indemnifying the United States from all loss
    resulting from any existing lien against such vessel: And provided
    further, That such vessel has been documented under the laws of the
    United States for a period of at least ten years prior to the date
    of its purchase by the United States.

-SOURCE-
    (June 29, 1936, ch. 858, title V, Sec. 507, 49 Stat. 2000; June 23,
    1938, ch. 600, Sec. 19, 52 Stat. 959; July 17, 1952, ch. 939, Sec.
    5, 66 Stat. 761; Pub. L. 86-518, Sec. 1, June 12, 1960, 74 Stat.
    216; Pub. L. 97-31, Sec. 12(88), Aug. 6, 1981, 95 Stat. 161.)

-MISC1-
                                AMENDMENTS                            
      1981 - Pub. L. 97-31 substituted "Secretary of Transportation"
    for "Commission" in three places and "his" for "its". For prior
    transfers of functions of the Commission, meaning the United States
    Maritime Commission, see Transfer of Functions note below.
      1960 - Pub. L. 86-518 substituted "twenty-five-year life" for
    "twenty-year life".
      1952 - Act July 17, 1952, made section applicable to vessels in
    domestic trade.
      1938 - Act June 23, 1938, struck out provisions which authorized
    a deduction for obsolescence.

                     EFFECTIVE DATE OF 1960 AMENDMENT                 
      Amendment by Pub. L. 86-518 applicable only to vessels delivered
    by the shipbuilder on or after Jan. 1, 1946, and with respect to
    such vessels shall become effective on Jan. 1, 1960, and with
    respect to vessels delivered by the shipbuilder before Jan. 1,
    1946, the provisions of this chapter existing immediately before
    June 12, 1960, shall continue in effect, see section 8(a) of Pub.
    L. 86-518, set out as a note under section 1125 of this Appendix.

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      For transfer of functions of United States Maritime Commission,
    see Reorg. Plan No. 6 of 1949, Reorg. Plan No. 21 of 1950, and
    Reorg. Plan No. 7 of 1961, set out under section 1111 of this
    Appendix.

-MISC2-
      RATE OF DEPRECIATION FOR VESSELS DELIVERED BY SHIPBUILDER ON OR
             AFTER JANUARY 1, 1946, AND BEFORE JANUARY 1, 1960
      For provisions relating to computation of depreciation with
    respect to vessels delivered by the shipbuilder on or after Jan. 1,
    1946, and before Jan. 1, 1960, see section 8(b) of Pub. L. 86-518,
    set out as a note under section 1125 of this Appendix.

    REVISION OF CONTRACTS, COMMITMENTS TO INSURE MORTGAGES, MORTGAGES,
      AND MORTGAGE INSURANCE CONTRACTS ENTERED INTO PRIOR TO JUNE 12,
                                   1960
      For provisions authorizing revision, see section 8(c) of Pub. L.
    86-518, set out as a note under section 1125 of this Appendix.

      COMMERCIAL EXPECTANCY OR PERIOD OF DEPRECIATION OF TANKERS AND
                        OTHER LIQUID BULK CARRIERS
      Nothing in any amendment made by Pub. L. 86-518 to operate or be
    interpreted to change from 20 to 25 years the provisions of this
    chapter relating to the commercial expectancy or period of
    depreciation of any tanker or other liquid bulk carrier, see
    section 9 of Pub. L. 86-518, set out as a note under section 1125
    of this Appendix.

-End-

-CITE-
    46 USC APPENDIX Sec. 1158                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER V - CONSTRUCTION-DIFFERENTIAL SUBSIDY

-HEAD-
    Sec. 1158. Disposition of vessels transferred to Maritime
      Administration of Department of Transportation

-STATUTE-
    (a) Authority to scrap or sell obsolete vessels
      If the Secretary of Transportation shall determine that any
    vessel transferred to the Maritime Administration of the Department
    of Transportation by section 1112 of this Appendix, or hereafter
    acquired, is of insufficient value for commercial or military
    operation to warrant its further preservation, the Secretary of
    Transportation is authorized (1) to scrap said vessel, or (2) to
    sell such vessel for cash, after appraisement and due
    advertisement, and upon competitive sealed bids, either to citizens
    of the United States or to aliens: Provided, That the purchaser
    thereof shall enter into an undertaking with sureties approved by
    the Secretary of Transportation that such vessel shall not be
    operated in the foreign commerce of the United States at any time
    within the period of ten years after the date of the sale, in
    competition with any other vessel owned by a citizen or citizens of
    the United States and registered under the laws thereof.
    (b) Authority to convey vessels
      (1) In general
        Notwithstanding section 1160(j) of this Appendix, the Secretary
      of Transportation may convey the right, title, and interest of
      the United States Government in any vessel of the National
      Defense Reserve Fleet that has been identified by the Secretary
      as an obsolete vessel of insufficient value to warrant its
      further preservation, if - 
          (A) the recipient is a non-profit organization, a State,
        Commonwealth, or possession of the United States or any
        municipal corporation or political subdivision thereof, or the
        District of Columbia;
          (B) the recipient agrees not to use, or allow others to use,
        the vessel for commercial transportation purposes;
          (C) the recipient agrees to make the vessel available to the
        Government whenever the Secretary indicates that it is needed
        by the Government;
          (D) the recipient agrees to hold the Government harmless for
        any claims arising from exposure to asbestos, polychlorinated
        biphenyls, lead paint, or other hazardous substances after
        conveyance of the vessel, except for claims arising from use of
        the vessel by the Government;
          (E) the recipient has a conveyance plan and a business plan
        that describes the intended use of the vessel, each of which
        have been submitted to and approved by the Secretary;
          (F) the recipient has provided proof, as determined by the
        Secretary, of resources sufficient to accomplish the transfer,
        necessary repairs and modifications, and initiation of the
        intended use of the vessel; and
          (G) the recipient agrees that when the recipient no longer
        requires the vessel for use as described in the business plan
        required under subparagraph (E) - 
            (i) the recipient will, at the discretion of the Secretary,
          reconvey the vessel to the Government in good condition
          except for ordinary wear and tear; or
            (ii) if the Board of Trustees of the recipient has decided
          to dissolve the recipient according to the laws of the State
          in which the recipient is incorporated, then - 
              (I) the recipient shall distribute the vessel, as an
            asset of the recipient, to a person that has been
            determined exempt from taxation under the provisions of
            section 501(c)(3) of title 26, or to the Federal Government
            or a State or local government for a public purpose; and
              (II) the vessel shall be disposed of by a court of
            competent jurisdiction of the county in which the principal
            office of the recipient is located, for such purposes as
            the court shall determine, or to such organizations as the
            court shall determine are organized exclusively for public
            purposes.
      (2) Other equipment
        At the Secretary's discretion, additional equipment from other
      obsolete vessels of the National Defense Reserve Fleet may be
      conveyed to assist the recipient with maintenance, repairs, or
      modifications.
      (3) Additional terms
        The Secretary may require any additional terms the Secretary
      considers appropriate.
      (4) Delivery of vessel
        If conveyance is made under this subsection the vessel shall be
      delivered to the recipient at a time and place to be determined
      by the Secretary. The vessel shall be conveyed in an "as is"
      condition.
      (5) Limitations
        If at any time prior to delivery of the vessel to the
      recipient, the Secretary determines that a different disposition
      of a vessel would better serve the interests of the Government,
      the Secretary shall pursue the more favorable disposition of the
      obsolete vessel and shall not be liable for any damages that may
      result from an intended recipient's reliance upon a proposed
      transfer.
      (6) Reversion
        The Secretary shall include in any conveyance under this
      subsection terms under which all right, title, and interest
      conveyed by the Secretary shall revert to the United States if
      the Secretary determines the vessel has been used other than as
      described in the business plan required under paragraph (1)(E).

-SOURCE-
    (June 29, 1936, ch. 858, title V, Sec. 508, 49 Stat. 2000; Pub. L.
    97-31, Sec. 12(89), Aug. 6, 1981, 95 Stat. 161; Pub. L. 108-136,
    div. C, title XXXV, Sec. 3512, Nov. 24, 2003, 117 Stat. 1789.)

-MISC1-
                                AMENDMENTS                            
      2003 - Pub. L. 108-136 designated existing provisions as subsec.
    (a), inserted heading, and added subsec. (b).
      1981 - Pub. L. 97-31 substituted "Secretary of Transportation"
    for "Commission" in three places and "the Maritime Administration
    of the Department of Transportation" for "it". For prior transfers
    of functions of the Commission, meaning the United States Maritime
    Commission, see Transfer of Functions note below.

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      For transfer of functions of United States Maritime Commission,
    see Reorg. Plan No. 6 of 1949, Reorg. Plan No. 21 of 1950, and
    Reorg. Plan No. 7 of 1961, set out under section 1111 of this
    Appendix.

-End-

-CITE-
    46 USC APPENDIX Sec. 1159                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER V - CONSTRUCTION-DIFFERENTIAL SUBSIDY

-HEAD-
    Sec. 1159. Vessels to be operated in domestic trade; terms and
      conditions of construction aid and sale to purchaser

-STATUTE-
      Any citizen of the United States may make application to the
    Secretary of Transportation for aid in the construction of a new
    vessel to be operated in the foreign or domestic trade (excepting
    vessels engaged solely in the transportation of property on inland
    rivers and canals exclusively). If such application is approved by
    the Secretary of Transportation, the vessel may be constructed
    under the terms and conditions of this subchapter, but no
    construction-differential subsidy shall be allowed. The Secretary
    of Transportation shall pay for the cost of national-defense
    features incorporated in such vessel. In case the vessel is
    designed to be of not less than three thousand five hundred gross
    tons and to be capable of sustained speed of not less than ten
    knots, or in the case of a passenger vessel operating solely on the
    inland rivers and waterways which is designed to be of not less
    than one thousand gross tons and to be capable of sustained speed
    of not less than eight knots, or in the case of a ferry operating
    solely in point-to-point transportation which is designed to be of
    not less than seventy-five gross tons and to be capable of a
    sustained speed of not less than eight knots, in the case of an
    oceangoing tug of more than two thousand five hundred horsepower or
    oceangoing barge of more than two thousand five hundred gross tons,
    or in the case of a vessel of more than two thousand five hundred
    horsepower designed to be capable of sustained speed of not less
    than forty knots, the purchaser shall be required to pay the
    Secretary of Transportation not less than 12 1/2  per centum of the
    cost of such vessel, and in the case of any other vessel the
    purchaser shall be required to pay the Secretary of Transportation
    not less than 25 per centum of the cost of such vessel (excluding
    from such cost, in either case, the cost of national defense
    features); and the balance of such purchase price shall be paid by
    the purchaser within twenty-five years in not to exceed twenty-five
    equal annual installments, with interest at a rate not less than
    (i) a rate determined by the Secretary of the Treasury, taking into
    consideration the current average market yield on outstanding
    marketable obligations of the United States with remaining periods
    to maturity comparable to the average maturities of such loans,
    adjusted to the nearest one-eighth of 1 per centum, plus (ii) an
    allowance adequate in the judgment of the Secretary of
    Transportation to cover administrative costs, the balance of such
    purchase price being secured by a preferred mortgage on the vessel
    sold and otherwise secured as the Secretary of Transportation may
    determine: Provided, That, notwithstanding any other provisions of
    law, the balance of the purchase price of a passenger vessel
    constructed under this section which is delivered subsequent to
    March 8, 1946, and which has the tonnage, speed, passenger
    accommodations, and other characteristics set forth in section 1153
    of this Appendix, may, with the approval of the Secretary of
    Transportation, be secured as provided in such section, and the
    obligation of the purchaser of such a vessel shall be satisfied and
    discharged as provided in such section.

-SOURCE-
    (June 29, 1936, ch. 858, title V, Sec. 509, 49 Stat. 2000; June 23,
    1938, ch. 600, Sec. 20, 52 Stat. 959; June 6, 1939, ch. 186, 53
    Stat. 810; July 17, 1952, ch. 939, Sec. 6, 66 Stat. 761; Pub. L. 86-
    518, Sec. 1, June 12, 1960, 74 Stat. 216; Pub. L. 87-877, Sec.
    2(b), Oct. 24, 1962, 76 Stat. 1200; Pub. L. 90-183, Dec. 10, 1967,
    81 Stat. 559; Pub. L. 90-214, Dec. 18, 1967, 81 Stat. 660; Pub. L.
    91-469, Sec. 11, Oct. 21, 1970, 84 Stat. 1022; Pub. L. 92-374, Aug.
    10, 1972, 86 Stat. 528; Pub. L. 95-173, Sec. 8, Nov. 12, 1977, 91
    Stat. 1360; Pub. L. 95-505, Oct. 24, 1978, 92 Stat. 1755; Pub. L.
    97-31, Sec. 12(90), Aug. 6, 1981, 95 Stat. 161.)

-MISC1-
                                AMENDMENTS                            
      1981 - Pub. L. 97-31 substituted "Secretary of Transportation"
    for "Secretary of Commerce" wherever appearing.
      1978 - Pub. L. 95-505 substituted "ten knots" for "fourteen
    knots".
      1977 - Pub. L. 95-173 inserted ", or in the case of a ferry
    operating solely in point-to-point transportation which is designed
    to be of not less than seventy-five gross tons and to be capable of
    a sustained speed of not less than eight knots" after "less than
    eight knots".
      1972 - Pub. L. 92-374 inserted "or in the case of a vessel of
    more than two thousand five hundred horsepower designed to be
    capable of sustained speed of not less than forty knots" in
    sentence dealing with percentage of cost payable by purchaser,
    after "barge of more than two thousand five hundred gross tons".
      1970 - Pub. L. 91-469 substituted "Secretary of Commerce" for
    "Commission" in seven places, "purchaser" for "applicant" in first
    three places, and provision for a rate of interest not less than a
    rate determined by the Secretary of the Treasury, taking into
    consideration the current average market yield on outstanding
    marketable obligations of the United States with remaining periods
    to maturity comparable to the average maturities of such loans,
    adjusted to the nearest one-eighth of 1 per centum plus an
    administrative cost allowance for prior rate of 3 1/2  per centum
    per annum.
      1967 - Pub. L. 90-214 included provision for oceangoing tugs of
    more than two thousand five hundred horsepower or oceangoing barges
    of more than two thousand five hundred gross tons.
      Pub. L. 90-183 inserted "or in the case of a passenger vessel
    operating solely on the inland rivers and waterways which is
    designed to be of not less than one thousand gross tons and to be
    capable of sustained speed of not less than eight knots" after
    "fourteen knots,".
      1962 - Pub. L. 87-877 struck out second proviso which, in the
    case of a vessel to be constructed under this section, gave a
    preference to an applicant who had his principal place of business
    on the Pacific coast of the United States, but not including one in
    business on or before Aug. 1, 1935, who subsequently changed his
    principal place of business to the Pacific coast, if such vessel
    was to be operated from such coast, the amount of the lowest
    responsible shipyard bid did not exceed by more than six per
    centum, a bid by such a shipyard on the Atlantic coast, and a port
    on the Pacific coast was designated and continued as the home port
    of the vessel, which set a lower rate of interest on deferred
    payments that would otherwise be applicable with respect to periods
    of construction of such vessel and its operation exclusively in
    coastwise, intercoastal, and other domestic trade, and which
    enumerated four conditions under which such lower interest rate
    would not apply.
      1960 - Pub. L. 86-518 substituted "twenty-five" for "twenty" in
    two places.
      1952 - Act July 17, 1952, provided that as to vessels delivered
    after Mar. 8, 1946, the balance of the payments shall be secured by
    a first preferred mortgage and that the purchaser's obligation to
    pay will be discharged by surrender of the vessel and all rights to
    the Government.
      1939 - Act June 6, 1939, struck out "except as otherwise provided
    in this title" after "no construction-differential subsidy shall be
    allowed", and inserted provisions requiring the applicant to pay
    not less than 12 1/2  per centum of the cost in case the vessel is
    designed to be of not less than 3,500 gross tons and to be capable
    of a sustained speed of not less than 14 knots.
      1938 - Act June 23, 1938, substituted "foreign or domestic trade"
    for "domestic trade", and inserted provisions requiring the
    Commission to pay for the cost of national-defense features.

                     EFFECTIVE DATE OF 1960 AMENDMENT                 
      Amendment by Pub. L. 86-518 applicable only to vessels delivered
    by the shipbuilder on or after Jan. 1, 1946, and with respect to
    such vessels shall become effective on Jan. 1, 1960, and with
    respect to vessels delivered by the shipbuilder before Jan. 1,
    1946, the provisions of this chapter existing immediately before
    June 12, 1960, shall continue in effect, see section 8(a) of Pub.
    L. 86-518, set out as a note under section 1125 of this Appendix.

    REVISION OF CONTRACTS, COMMITMENTS TO INSURE MORTGAGES, MORTGAGES,
      AND MORTGAGE INSURANCE CONTRACTS ENTERED INTO PRIOR TO JUNE 12,
                                   1960
      For provisions authorizing revision, see section 8(c) of Pub. L.
    86-518, set out as a note under section 1125 of this Appendix.

      COMMERCIAL EXPECTANCY OR PERIOD OF DEPRECIATION OF TANKERS AND
                        OTHER LIQUID BULK CARRIERS
      Nothing in any amendment made by Pub. L. 86-518 to operate or be
    interpreted to change from 20 to 25 years the provisions of this
    chapter relating to the commercial expectancy or period of
    depreciation of any tanker or other liquid bulk carrier, see
    section 9 of Pub. L. 86-518, set out as a note under section 1125
    of this Appendix.

-End-

-CITE-
    46 USC APPENDIX Sec. 1160                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER V - CONSTRUCTION-DIFFERENTIAL SUBSIDY

-HEAD-
    Sec. 1160. Acquisition of obsolete vessels

-STATUTE-
    (a) Definitions
      When used in this section - 
        (1) The term "obsolete vessel" means a vessel or vessels, each
      of which (A) is of not less than one thousand three hundred and
      fifty gross tons, (B) in the judgment of the Secretary of
      Transportation, should, by reason of age, obsolescence, or
      otherwise, be replaced in the public interest and (C) has been
      owned by a citizen or citizens of the United States for at least
      three years immediately prior to the date of acquisition
      hereunder.
        (2) The term "new vessel" means a vessel or vessels, each of
      which (A) is constructed under the provisions of this chapter,
      and is acquired within two years from the date of completion of
      such vessel, or is purchased under section 1204 of this Appendix,
      as amended, by the person turning in an obsolete vessel under
      this section, or (B) is hereafter constructed in a domestic
      shipyard on private account and not under the provisions of this
      chapter, and documented under the laws of the United States.
    (b) Promotion of construction of new vessels; allowance on obsolete
      vessels
      In order to promote the construction of new, safe, and efficient
    vessels to carry the domestic and foreign waterborne commerce of
    the United States, the Secretary of Transportation is authorized,
    subject to the provisions of this section, to acquire any obsolete
    vessel in exchange for an allowance of credit. The obsolete vessel
    shall be acquired by the Secretary of Transportation, if the owner
    so requests, either at the time the owner contracts for the
    construction or purchase of a new vessel or within five days of the
    actual date of delivery of the new vessel to the owner. The amount
    of the allowance shall be determined at the time of the acquisition
    of the obsolete vessel by the Secretary of Transportation. In the
    event the obsolete vessel is acquired by the Secretary of
    Transportation at the time the owner contracts for the construction
    or purchase of the new vessel, the allowance shall not be paid to
    the owner of the obsolete vessel, but shall be applied upon the
    purchase price of a new vessel. In the case of a new vessel
    constructed under the provisions of this chapter, such allowance
    may, under such terms and conditions as the Secretary of
    Transportation may prescribe, be applied upon the cash payments
    required under this chapter. In case the new vessel is not
    constructed under the provisions of this chapter, the allowance
    shall, upon acquisition of the obsolete vessel by the Secretary of
    Transportation, be paid, for the account of the owner, to the
    shipbuilder constructing such new vessel. In the event that title
    to the obsolete vessel is acquired by the Secretary of
    Transportation at the time of delivery of the new vessel, the
    allowance shall be deposited in the owner's capital construction
    fund. This subsection shall apply to obsolete vessels exchanged for
    new vessels hereafter contracted to be built, or eligible for such
    exchange but not exchanged in connection with a contract for new
    vessels executed prior to October 1, 1960.
    (c) Utility value of new vessel; gross tonnage
      The utility value of the new vessel for operation in the domestic
    or foreign commerce of the United States shall not be substantially
    less than that of the obsolete vessel. The gross tonnage of the
    obsolete vessel may exceed the gross tonnage of the new vessel in a
    ratio not in excess of three to one, if the Secretary of
    Transportation finds that the new vessel, although of lesser
    tonnage, will provide utility value equivalent to or greater than
    that of the obsolete vessel.
    (d) Amount of allowance on obsolete vessel; determination of amount
      The allowance for an obsolete vessel shall be the fair and
    reasonable value of such vessel as determined by the Secretary of
    Transportation. In making such determination the Secretary of
    Transportation shall consider: (1) the scrap value of the obsolete
    vessel both in American and foreign markets, (2) the depreciated
    value based on a twenty or twenty-five year life, whichever is
    applicable to the obsolete vessel, and (3) the market value thereof
    for operation in the world trade or in the foreign or domestic
    trade of the United States. In the event the obsolete vessel is
    acquired by the Secretary of Transportation at the time the owner
    contracts for the construction of the new vessel, and the owner
    uses such vessel during the period of construction of the new
    vessel, the allowance shall be reduced by an amount representing
    the fair value of such use. The rate for the use of the obsolete
    vessel shall be fixed by the Secretary of Transportation for the
    entire period of such use at the time of execution of the contract
    for the construction of the new vessel.
    (e) Recognition of gain for income tax purposes; basis for gain or
      loss
      No gain shall be recognized to the owner for the purpose of
    Federal income taxes in the case of a transfer of an obsolete
    vessel to the Secretary of Transportation under the provisions of
    this section. The basis for gain or loss upon a sale or exchange
    and for depreciation under the applicable Federal income-tax laws
    of a new vessel acquired as contemplated in this section shall be
    the same as the basis of the obsolete vessel or vessels exchanged
    for credit upon the acquisition of such new vessel, increased in
    the amount of the cost of such vessel (other than the cost
    represented by such obsolete vessel or vessels) and decreased in
    the amount of loss recognized upon such transfer.
    (f) Report to Congress
      The Secretary of Transportation shall include in his annual
    report to Congress a detailed statement of all transactions
    consummated under the provisions of the preceding subsections
    during the period covered by such report.
    (g) Use of vessels 25 years old or more
      An obsolete vessel acquired by the Secretary of Transportation
    under this section which is or becomes twenty-five years old or
    more, and vessels presently in the Secretary's laid-up fleet which
    are or become twenty-five years old or more, shall in no case be
    used for commercial operation, except that any such obsolete
    vessel, or any such vessel in the laid-up fleet may be used during
    any period in which vessels may be requisitioned under section 1242
    of this Appendix, as amended, and except as otherwise provided in
    this chapter for the employment of the Secretary's vessels in
    steamship lines on trade routes exclusively serving the foreign
    trade of the United States.
    (h) Repealed. Pub. L. 101-225, title III, Sec. 307(7), Dec. 12,
      1989, 103 Stat. 1925
    (i) Exchange of vessels; valuation; scrapping of traded out vessels
      The Secretary of Transportation is authorized to acquire suitable
    documented vessels, as defined in section 2101 of title 46, with
    funds in the Vessel Operations Revolving Fund derived from the sale
    of obsolete vessels in the National Defense Reserve Fleet. For
    purposes of this subsection, the acquired and obsolete vessels
    shall be valued at their scrap value in domestic or foreign markets
    as of the date of the acquisition for or sale from the National
    Defense Reserve Fleet; except that, in a transaction subject to
    this section, the value assigned to those vessels will be
    determined on the same basis, with consideration given to the fair
    value of the cost of positioning the traded-out vessel to the place
    of scrapping. All costs incident to the lay-up of the vessel
    acquired under this subsection may be paid from balances in the
    Fund. Notwithstanding the provisions of sections 808 and 835 of
    this Appendix, vessels sold from the National Defense Reserve Fleet
    under this subsection may be scrapped in approved foreign markets.
    (j) Placement in national defense reserve fleet of acquired vessels
      Any vessel heretofore or hereafter acquired under this section,
    or otherwise acquired by the Maritime Administration of the
    Department of Transportation under any other authority shall be
    placed in the national defense reserve fleet established under
    authority of section 11 of the Merchant Ship Sales Act of 1946 [50
    App. U.S.C. 1744] and shall not be traded out or sold from such
    reserve fleet, except as provided for in subsections (g) and (i) of
    this section. This limitation shall not affect the rights of the
    Secretary of Transportation to dispose of a vessel as provided in
    other sections of this subchapter or in subchapters VII or XI of
    this chapter.

-SOURCE-
    (June 29, 1936, ch. 858, title V, Sec. 510, as added Aug. 4, 1939,
    ch. 417, Sec. 7, 53 Stat. 1183; amended July 17, 1952, ch. 939,
    Secs. 7, 8, 66 Stat. 762; Aug. 10, 1954, ch. 664, 68 Stat. 680;
    Pub. L. 85-332, Feb. 20, 1958, 72 Stat. 17; Pub. L. 86-518, Sec. 1,
    June 12, 1960, 74 Stat. 216; Pub. L. 86-575, July 5, 1960, 74 Stat.
    312; Pub. L. 87-401, Oct. 5, 1961, 75 Stat. 833; Pub. L. 87-755,
    Oct. 5, 1962, 76 Stat. 751; Pub. L. 89-254, Secs. 1, 2, Oct. 10,
    1965, 79 Stat. 980; Pub. L. 91-469, Secs. 12, 13, 35(a), Oct. 21,
    1970, 84 Stat. 1022, 1035; Pub. L. 93-605, Sec. 1, Jan. 2, 1975, 88
    Stat. 1965; Pub. L. 95-177, Nov. 15, 1977, 91 Stat. 1368; Pub. L.
    97-31, Sec. 12(91), Aug. 6, 1981, 95 Stat. 161; Pub. L. 101-225,
    title III, Sec. 307(7), Dec. 12, 1989, 103 Stat. 1925; Pub. L. 101-
    595, title VII, Sec. 704, Nov. 16, 1990, 104 Stat. 2994.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Federal income-tax laws, referred to in subsec. (e), are
    classified generally to Title 26, Internal Revenue Code.

-MISC1-
                                AMENDMENTS                            
      1990 - Subsec. (i). Pub. L. 101-595 amended subsec. (i)
    generally. Prior to amendment, subsec. (i) read as follows: "The
    Secretary of Transportation is authorized to acquire mariner class
    vessels constructed under subchapter VII of this chapter and Public
    Law 911, Eighty-first Congress, and other suitable vessels,
    constructed in the United States, which have never been under
    foreign documentation, in exchange for obsolete vessels in the
    National Defense Reserve Fleet. For purposes of this subsection,
    the trade-in and trade-out vessels shall be valued at the higher of
    their scrap value in domestic or foreign markets as of the date of
    the exchange: Provided, That in any exchange transactions, the
    value assigned to the traded-in and traded-out vessels will be
    determined on the same basis. The value of the traded-out vessels
    shall be as nearly as possible equal to the value of the traded-in
    vessel plus the fair value of the cost of towing the traded-out
    vessel to the place of scrapping. To the extent the value of the
    traded-out vessel exceeds the value of the traded-in vessel plus
    the fair value of the cost of towing, the owner of the traded-in
    vessel shall pay the excess to the Secretary of Transportation in
    cash at the time of exchange. This excess shall be deposited into
    the Vessel Operations Revolving Fund and all costs incident to the
    lay-up of the vessels acquired under this chapter may be paid from
    balances in the Fund. No payments shall be made by the Secretary of
    Transportation to the owner of any traded-in vessel in connection
    with any exchange under this subsection. Notwithstanding the
    provisions of sections 808 and 835 of this Appendix, vessels traded
    out under this subsection may be scrapped in approved foreign
    markets. The provision of this subsection (i) as it read prior to
    the 1975 amendment shall govern all transactions made thereunder
    prior to that amendment."
      1989 - Subsec. (h). Pub. L. 101-225 struck out subsec. (h) which
    related to acquisition of tankers for national defense reserve.
      1981 - Subsecs. (a)(1), (b). Pub. L. 97-31, Sec. 12(91)(A),
    substituted "Secretary of Transportation" for "Secretary of
    Commerce" wherever appearing.
      Subsecs. (c) to (e). Pub. L. 97-31, Sec. 12(91)(B), substituted
    "Secretary of Transportation" for "Commission" wherever appearing.
    For prior transfers of functions of the Commission, meaning the
    United States Maritime Commission, see Transfer of Functions note
    below.
      Subsec. (f). Pub. L. 97-31, Sec. 12(91)(B), (C), substituted
    "Secretary of Transportation" for "Commission" and "his" for "its".
    For prior transfers of functions of the Commission, meaning the
    United States Maritime Commission, see Transfer of Functions note
    below.
      Subsec. (g). Pub. L. 97-31, Sec. 12(91)(B), (D), substituted
    "Secretary of Transportation" for "Commission" and "Secretary's"
    for "Commission's" in two places. For prior transfers of functions
    of the Commission, meaning the United States Maritime Commission,
    see Transfer of Functions note below.
      Subsecs. (h), (i). Pub. L. 97-31, Sec. 12(91)(A), substituted
    "Secretary of Transportation" for "Secretary of Commerce" wherever
    appearing.
      Subsec. (j). Pub. L. 97-31, Sec. 12(91)(A), (E), substituted
    "Maritime Administration of the Department of Transportation" for
    "Secretary of Commerce" and "Secretary of Transportation" for
    "Secretary of Commerce".
      1977 - Subsec. (i). Pub. L. 95-177 struck out ", within two years
    after the enactment of this subsection," after "is authorized" and
    "that are scheduled for scrapping" after "National Defense Reserve
    Fleet", inserted "and other suitable vessels, constructed in the
    United States, which have never been under foreign documentation,"
    after "Eighty-first Congress,", and substituted "the trade-in and
    trade-out vessels" for "the traded-in and traded-out vessels" and
    "the 1975 Amendment" for "this amendment".
      1975 - Subsec. (i). Pub. L. 93-605 added subsec. (i). A prior
    subsec. (i) providing authority for the Secretary of Commerce to
    acquire vessels of one thousand five hundred gross tons or over
    which were constructed in the United States in exchange for more
    modern or efficient ocean-going vessels of one thousand five
    hundred gross tons or over owned by the United States under
    specified conditions expired on July 5, 1972.
      1970 - Subsec. (a)(1). Pub. L. 91-469, Sec. 12(a), in redefining
    "obsolete vessel", substituted in subd. (B) "in the judgment of the
    Secretary of Commerce, should, by reason of age, obsolescence, or
    otherwise, be replaced in the public interest" for "is not less
    than seventeen years old and, in the judgment of the Commission, is
    obsolete or inadequate for successful operation in the domestic or
    foreign trade of the United States", substituted in subd. (C) "has
    been owned" for "is owned" and deleted therefrom "and has been
    owned by such citizen or citizens" preceding "for at least three
    years", and deleted concluding proviso defining "obsolete vessel"
    as meaning a vessel, until June 30, 1964, which is not less than
    1,350 gross tons, is not less than 12 years old, and is citizen
    owned for three year period prior to acquisition hereunder.
      Subsec. (b). Pub. L. 91-469, Secs. 12(b), 35(a), substituted
    "capital construction fund" for "capital reserve fund" and
    "Secretary of Commerce" for "Commission" in seven places,
    respectively.
      Subsec. (i). Pub. L. 91-469, Sec. 13, in amending first sentence,
    substituted "1972" and "which were constructed in the United
    States" for "1970" and "which were constructed or contracted for by
    the United States shipyards before September 3, 1945" and struck
    out "war-built vessels (which are defined for purposes of this
    subsection as" and "which were constructed or contracted for by the
    United States shipyards during the period beginning September 3,
    1939, and ending September 2, 1945)" before and after "oceangoing
    vessels of one thousand five hundred gross tons or over".
      1965 - Subsec. (i). Pub. L. 89-254, Sec. 1(a), substituted
    "before July 5, 1970, vessels of one thousand five hundred gross
    tons or over which were constructed or contracted for by the United
    States shipyards before September 3, 1945" for "within five years
    from the date of enactment of this Act war-built vessels (which are
    defined for purposes of this subsection as oceangoing vessels of
    one thousand five hundred gross tons or over which were constructed
    or contracted for by the United States shipyards during the period
    beginning September 3, 1939, and ending September 2, 1945)", and
    inserted "(which are defined for purposes of this subsection as
    oceangoing vessels of one thousand five hundred gross tons or over
    which were constructed or contracted for by the United States
    shipyards during the period beginning September 3, 1939, and ending
    September 2, 1945)".
      Subsec. (i)(1). Pub. L. 89-254, Sec. 1(b), amended par. (1) to
    apply the 3 year prohibition against any vessel being operated
    under an operating-differential subsidy to the applicant or any
    affiliate of the applicant rather than to the vessel itself.
      Subsec. (i)(2). Pub. L. 89-254, Sec. 1(c), required the value of
    a traded out vessel to be calculated in the same manner as its
    value was determined when it was traded in, except that vessels
    traded in prior to Oct. 1, 1960, shall be valued on the basis
    yielding the highest fair return to the government commensurate
    with the purpose of this subsection, and required in each exchange
    of vessels under this subsection, the value of the traded-in
    vessel, unless based on scrap value, and the value of the traded-
    out vessel to be calculated in the same manner.
      Subsec. (i)(9). Pub. L. 89-254, Sec. 1(d), substituted provisions
    permitting tanker vessels to be traded out under the provisions of
    this subsection only for major conversions into dry cargo carriers
    or liquid bulk carriers, including natural gas carriers but
    excluding bulk petroleum carriers, except where traded out for use
    exclusively in trade and commerce on the Great Lakes, including the
    St. Lawrence River and Gulf, for provisions which prohibited tanker-
    vessels to be traded out under the provisions of this subsection.
      Subsec. (j). Pub. L. 89-254, Sec. 2, added subsec. (j).
      1962 - Subsec. (a)(1). Pub. L. 87-755 substituted "June 30, 1964"
    for "June 30, 1962".
      1961 - Subsec. (b). Pub. L. 87-401, Sec. 1(1), provided that if
    the owner requests, the vessel shall be acquired by the Federal
    Maritime Board or Secretary of Commerce either when the owner
    contracts for construction or purchase of a new ship or within 5
    days of actual delivery of the new vessel to the owner, that the
    amount of allowance be determined at the time of acquisition of the
    vessel by the Board or Secretary, and if at such time, the owner
    contracts for construction or purchase of a new vessel, the
    allowance shall be applied upon the price of the new vessel, that
    if the Board or Secretary acquired title to the vessel at time of
    delivery of the new vessel, the allowance shall be deposited in the
    owner's capital reserve fund, and that this subsection shall apply
    to exchanges for vessels hereafter contracted to be built, or
    eligible for exchange but not so exchanged in connection with
    contracts for new vessels executed prior to Oct. 1, 1960.
      Subsec. (d). Pub. L. 87-401, Sec. 1(2), provided for a
    depreciation value based upon a twenty-year life, if applicable,
    and substituted "In the event the obsolete vessel is acquired by
    the Board or Secretary at the time the owner contracts for the
    construction of a new vessel, and the owner" for "If the owner of
    the obsolete vessel".
      1960 - Subsec. (d). Pub. L. 86-518 substituted "twenty-five-year
    life" for "twenty-year life".
      Subsec. (g). Pub. L. 86-518 substituted "twenty-five years" for
    "twenty years" in two places.
      Subsec. (i). Pub. L. 86-575 added subsec. (i).
      1958 - Subsec. (a)(1). Pub. L. 85-332 substituted "June 30, 1962"
    for "June 30, 1958".
      1954 - Subsec. (h). Act Aug. 10, 1954, added subsec. (h).
      1952 - Subsec. (a)(1). Act July 17, 1952, Sec. 7, provided that
    until June 30, 1958, the minimum age in determining the eligibility
    of "obsolete vessels" for turn in for credit allowance on a new
    vessel is reduced from 17 to 12 years.
      Subsec. (d). Act July 17, 1952, Sec. 8, provided that the rate
    for the use of the obsolete vessel should be fixed at the time that
    the contract for the new vessel is entered into.

                     EFFECTIVE DATE OF 1960 AMENDMENT                 
      Amendment by Pub. L. 86-518 applicable only to vessels delivered
    by the shipbuilder on or after Jan. 1, 1946, and with respect to
    such vessels shall become effective on Jan. 1, 1960, and with
    respect to vessels delivered by the shipbuilder before Jan. 1,
    1946, the provisions of this chapter existing immediately before
    June 12, 1960, shall continue in effect, see section 8(a) of Pub.
    L. 86-518, set out as a note under section 1125 of this Appendix.

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      For transfer of functions of United States Maritime Commission,
    see Reorg. Plan No. 6 of 1949, Reorg. Plan No. 21 of 1950, and
    Reorg. Plan No. 7 of 1961, set out under section 1111 of this
    Appendix.

-MISC2-
       SECRETARY OF COMMERCE AUTHORIZED TO PURCHASE STEAMSHIP UNITED
             STATES; REQUISITION OR PURCHASE BY UNITED STATES
      Pub. L. 92-296, Sec. 2, May 16, 1972, 86 Stat. 140, as amended by
    Pub. L. 94-536, Oct. 17, 1976, 90 Stat. 2497; Pub. L. 96-111, Sec.
    2, Nov. 15, 1979, 93 Stat. 846, provided that: "The Secretary of
    Commerce is authorized and directed to purchase the steamship
    United States, as is, where is, at the depreciated cost of the
    vessel to the owner, as determined by the Secretary of Commerce,
    less the unpaid principal and interest on the mortgage on the
    vessel, for layup in the National Defense Reserve Fleet and
    operation for the account of any agency or department of the United
    States during any period in which vessels may be requisitioned
    under section 902 of the Merchant Marine Act, 1936 [46 App. U.S.C.
    1242], and/or for sale or charter to a qualified operator for
    operation under the American flag in the coastwise and/or foreign
    commerce of the United States and/or between foreign ports
    notwithstanding the provision of section 506 of the Merchant Marine
    Act, 1936 [46 App. U.S.C. 1156]: Provided, That for hire carriage
    in coastwise commerce of the United States is limited to
    passengers, their accompanying baggage, and one thousand
    measurement tons of cargo, of forty cubic feet each, per annum in
    any single coastwise trade: Provided further, That for hire
    carriage of cargo in excess of the aforesaid one thousand tons
    shall be unlawful, or for use as a floating hotel in or on the
    navigable waters of the United States. Whenever the conditions set
    forth in section 902, the Merchant Marine Act of 1936 [46 App.
    U.S.C. 1242], exist, the vessel may be requisitioned or purchased
    by the United States and just compensation for title or use, as the
    case may be, shall be paid in accordance with section 902 of the
    Merchant Marine Act, as amended (46 U.S.C. 1242) [46 App. U.S.C.
    1242]. The depreciated cost of the vessel to the owner shall be
    computed on the schedule adopted by the Internal Revenue Service
    for income tax purposes. Such determination shall be final. The
    Secretary of Commerce shall require the owner of the vessel to
    agree that it will pay all existing private obligations related to
    the vessel, and that it will commit an amount equal to the net
    proceeds received from such sale in excess of existing obligations
    and expenses incident to the sale, within a reasonable period not
    to exceed twelve months of receipt, as equity capital for the
    construction of new vessels which the Secretary determines are
    built to effectuate the purposes and policy of the Merchant Marine
    Act, 1936, as amended [this chapter]."

      RATE OF DEPRECIATION FOR VESSELS DELIVERED BY SHIPBUILDER ON OR
             AFTER JANUARY 1, 1946, AND BEFORE JANUARY 1, 1960
      For provisions relating to computation of depreciation with
    respect to vessels delivered by the shipbuilder on or after Jan. 1,
    1946, and before Jan. 1, 1960, see section 8(b) of Pub. L. 86-518,
    set out as a note under section 1125 of this Appendix.

    REVISION OF CONTRACTS, COMMITMENTS TO INSURE MORTGAGES, MORTGAGES,
      AND MORTGAGE INSURANCE CONTRACTS ENTERED INTO PRIOR TO JUNE 12,
                                   1960
      For provisions authorizing revision, see section 8(c) of Pub. L.
    86-518, set out as a note under section 1125 of this Appendix.

      COMMERCIAL EXPECTANCY OR PERIOD OF DEPRECIATION OF TANKERS AND
                        OTHER LIQUID BULK CARRIERS
      Nothing in any amendment made by Pub. L. 86-518 to operate or be
    interpreted to change from 20 to 25 years the provisions of this
    chapter relating to the commercial expectancy or period of
    depreciation of any tanker or other liquid bulk carrier, see
    section 9 of Pub. L. 86-518, set out as a note under section 1125
    of this Appendix.

                   SUSPENSION OF SUBSECTION (G) REPEALED               
      Act May 14, 1940, ch. 201, Sec. 1, 54 Stat. 216, as extended by
    act June 16, 1942, ch. 416, 56 Stat. 370, which suspended subsec.
    (g) of this section until six months after the end of World War II
    should have been proclaimed or such earlier time as the Congress by
    concurrent resolution or the President might designate, was
    repealed by act July 25, 1947, ch. 327, Sec. 1, 61 Stat. 449.

-End-

-CITE-
    46 USC APPENDIX Sec. 1161                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER V - CONSTRUCTION-DIFFERENTIAL SUBSIDY

-HEAD-
    Sec. 1161. Reserve funds for construction or acquisition of
      vessels; taxation

-STATUTE-
    (a) "New vessel" defined
      When used in this section the term "new vessel" means any vessel
    (1) documented or agreed with the Secretary of Transportation to be
    documented under the laws of the United States; (2) constructed in
    the United States after December 31, 1939, or the construction of
    which has been financed under subchapters V or VII of this chapter,
    or the construction of which has been aided by a mortgage insured
    under subchapter XI of this chapter; and (3) either (A) of such
    type, size, and speed as the Secretary of Transportation shall
    determine to be suitable for use on the high seas or Great Lakes in
    carrying out the purposes of this chapter, but not of less than two
    thousand gross tons or of less speed than twelve knots, unless the
    Secretary of Transportation shall determine and certify in each
    case that a vessel of a specified lesser tonnage or speed is
    desirable for use by the United States in case of war or national
    emergency, or (B) constructed to replace a vessel or vessels
    requisitioned or purchased by the United States.
    (b) Establishment of construction reserve funds
      For the purposes of promoting the construction, reconstruction,
    reconditioning, or acquisition of vessels, or for other purposes
    authorized in this section, necessary to carrying out the policy
    set forth in section 1101 of this Appendix, any citizen of the
    United States who is operating a vessel or vessels in the foreign
    or domestic commerce of the United States or in the fisheries or
    owns in whole or in part a vessel or vessels being so operated, or
    who, at the time of purchase or requisition of the vessel by the
    Government, was operating a vessel or vessels so engaged or owned
    in whole or in part a vessel or vessels being so operated or had
    acquired or was having constructed a vessel or vessels for the
    purpose of operation in such commerce or in the fisheries, may
    establish a construction reserve fund, for the construction,
    reconstruction, reconditioning, or acquisition of new vessels, or
    for other purposes authorized in this section, to be composed of
    deposits of proceeds from sales of vessels, indemnities on account
    of losses of vessels, earnings from the operation of vessels
    documented under the laws of the United States and from services
    incident thereto, and receipts, in the form of interest or
    otherwise, with respect to amounts previously deposited. Such
    construction reserve fund shall be established, maintained,
    expended, and used in accordance with the provisions of this
    section and rules or regulations to be prescribed jointly by the
    Secretary of Transportation and the Secretary of the Treasury.
    (c) Recognition of gain for taxation where proceeds of sale or
      indemnity for loss deposited in fund
      In the case of the sale or actual or constructive total loss of a
    vessel, if the taxpayer deposits an amount equal to the net
    proceeds of the sale or to the net indemnity with respect to the
    loss in a construction reserve fund established under subsection
    (b) of this section, then - 
        (1) if the taxpayer so elects in his income-tax return for the
      taxable year in which the gain was realized, or
        (2) in case a vessel is purchased or requisitioned by the
      United States, or is lost, in any taxable year beginning after
      December 31, 1939, and the taxpayer receives payment for the
      vessel so purchased or requisitioned, or receives from the United
      States indemnity on account of such loss, subsequent to the end
      of such taxable year, if the taxpayer so elects prior to the
      expiration of sixty days after the receipt of the payment or
      indemnity, and in accordance with a form of election to be
      prescribed by the Commissioner of Internal Revenue with the
      approval of the Secretary of the Treasury,

    no gain shall be recognized to the taxpayer in respect of such sale
    or indemnification in the computation of net income for the
    purposes of Federal income or excess-profits taxes. If an election
    is made under subdivision (2) of this subsection and if computation
    or recomputation in accordance with this subsection is otherwise
    allowable but is prevented, on the date of making such election or
    within six months thereafter, by any statute of limitation, such
    computation or recomputation nevertheless shall be made
    notwithstanding such statute if a claim therefor is filed within
    six months after the date of making such election.
      For the purposes of this subsection no amount shall be considered
    as deposited in a construction reserve fund unless it is deposited
    within sixty days after it is received by the taxpayer.
      As used in this subsection the term "net proceeds" and the term
    "net indemnity" mean the sum of (1) the adjusted basis of the
    vessel and (2) the amount of gain which would be recognized to the
    taxpayer without regard to this subsection.
    (d) Basis for determining gain or loss and for depreciation of new
      vessels
      The basis for determining gain or loss and for depreciation, for
    the purposes of Federal income or excess profits taxes, of any new
    vessel constructed, reconstructed, reconditioned, or acquired by
    the taxpayer, or with respect to which purchase-money indebtedness
    is liquidated as provided in subsection (g) of this section, in
    whole or in part out of the construction reserve fund shall be
    reduced by that portion of the deposits in the fund expended in the
    construction, reconstruction, reconditioning, acquisition, or
    liquidation of purchase-money indebtedness of the new vessel which
    represents gain not recognized for tax purposes under subsection
    (c) of this section.
    (e) Order, proportions, etc., of deposits and withdrawals
      For the purposes of this section, (1) if the net proceeds of a
    sale or the net indemnity in respect of a loss are deposited in
    more than one deposit, the amount consisting of the gain shall be
    considered as first deposited; (2) amounts expended, obligated, or
    otherwise withdrawn shall be applied against the amounts deposited
    in the fund in the order of deposit; and (3) if any deposit
    consists in part of gain not recognized under subsection (c) of
    this section, any expenditure, obligation, or withdrawal applied
    against such deposit shall be considered to consist of gain in the
    proportion that the part of the deposit consisting of gain bears to
    the total amount of the deposit.
    (f) Amounts in fund as accumulation of earnings or profits
      With respect to any taxable year, amounts on deposit on the last
    day of such year in a construction reserve fund in accordance with
    this section and with respect to which all the requirements of
    subsection (g) of this section have been satisfied, to the extent
    that such requirements are applicable as of the last day of said
    taxable year, shall not constitute an accumulation of earnings or
    profits within the meaning of section 102 of the Internal Revenue
    Code.
    (g) Benefits of section conditioned upon manner and time of
      expenditure of deposits
      The provisions of subsections (c) and (f) of this section shall
    apply to any deposit in the construction reserve fund only to the
    extent that such deposit is expended or obligated for expenditure,
    in accordance with rules and regulations to be prescribed jointly
    by the Secretary of Transportation and the Secretary of the
    Treasury - 
        (1) under a contract for the construction or acquisition of a
      new vessel or vessels (or in the discretion of the Secretary of
      Transportation, for a part interest therein), or, with the
      approval of the Secretary of Transportation, for the
      reconstruction or reconditioning of a new vessel or vessels,
      entered into within (i) two years from the date of deposit or the
      date of any extension thereof which may be granted by the
      Secretary of Transportation pursuant to the provisions of
      subsection (h) of this section, in the case of deposits made
      prior to the date on which these amendatory provisions become
      effective, or (ii) three years from the date of such deposit in
      the case of a deposit made after such effective date, only if
      under such rules and regulations - 
          (A) within such period not less than 12 1/2  per centum of
        the construction or contract price of the vessel or vessels is
        paid or irrevocably committed on account thereof and the plans
        and specifications therefor are approved by the Secretary of
        Transportation to the extent by him deemed necessary; and
          (B) in case of a vessel or vessels not constructed under the
        provisions of this subchapter or not purchased from the
        Secretary of Transportation, (i) said construction is
        completed, within six months from the date of the construction
        contract, to the extent of not less than 5 per centum thereof
        (or in case the contract covers more than one vessel, the
        construction of the first vessel so contracted for is so
        completed to the extent of not less than 5 per centum) as
        estimated by the Secretary of Transportation and certified by
        him to the Secretary of the Treasury, and (ii) all construction
        under such contract is completed with reasonable dispatch
        thereafter;

        (2) for the liquidation of existing or subsequently incurred
      purchase-money indebtedness to persons other than a parent
      company of, or a company affiliated or associated with, the
      mortgagor on a new vessel or vessels within (i) two years from
      the date of deposit or the date of any extension thereof which
      may be granted by the Secretary of Transportation pursuant to the
      provisions of subsection (h) of this section, in the case of
      deposits made prior to the date on which these amendatory
      provisions become effective, or (ii) three years from the date of
      such deposit in the case of a deposit made after such effective
      date.
    (h) Authorizations of extensions of time
      The Secretary of Transportation is authorized under rules and
    regulations to be prescribed jointly by the Secretary of the
    Treasury and the Secretary of Transportation to grant extensions of
    the period within which the deposits shall be expended or obligated
    or within which construction shall have progressed to the extent of
    5 per centum of completion as provided herein, but such extension
    shall not be for an aggregate additional period in excess of two
    years with respect to the expenditure or obligation of such
    deposits or more than one year with respect to the progress of such
    construction: Provided, That until January 1, 1965, in addition to
    the extensions hereinbefore permitted, further extensions may be
    granted ending not later than December 31, 1965.
    (i) Taxation of deposits upon failure of conditions
      Any such deposited gain or portion thereof which is not so
    expended or obligated within the period provided, or which is
    otherwise withdrawn before the expiration of such period, or with
    respect to which the construction has not progressed to the extent
    of 5 per centum of completion within the period provided, or with
    respect to which the Secretary of Transportation finds and
    certifies to the Secretary of the Treasury that, for causes within
    the control of the taxpayer, the entire construction is not
    completed with reasonable dispatch, if otherwise taxable income
    under the law applicable to the taxable year in which such gain was
    realized, shall be included in the gross income for such taxable
    year, except for the purpose of the declared value excess-profits
    tax and the capital stock tax. If any such deposited gain or
    portion thereof with respect to a deposit made in any taxable year
    ending on or before June 30, 1945 is so included in gross income
    for such taxable year, there shall (in addition to any other
    deficiency) be assessed, collected, and paid in the same manner as
    if it were a deficiency, an amount equal to 1.1 per centum of the
    amount of gain so included, such amount being in lieu of any
    adjustment with respect to the declared value excess-profits tax
    for such taxable year.
    (j) Assessment and collection of deficiency tax
      Notwithstanding any other provision of law, any deficiency in tax
    for any taxable year resulting from the inclusion of any amount in
    gross income as provided by subsection (i) of this section, and the
    amount to be treated as a deficiency under such subsection in lieu
    of any adjustment with respect to the declared value excess-profits
    tax, may be assessed or a proceeding in court for the collection
    thereof may be begun without assessment, at any time: Provided,
    however, That interest on any such deficiency or amount to be
    treated as a deficiency shall not begin until the date the
    deposited gain or portion thereof in question is required under
    subsection (i) of this section to be included in gross income.
    (k) Taxable years governed by section
      This section shall be applicable to a taxpayer only in respect of
    sales or indemnifications for losses occurring within a taxable
    year beginning after December 31, 1939, and only in respect of
    earnings derived during a taxable year beginning after December 31,
    1939.
    (l) Vessels deemed constructed or acquired by taxpayers owning
      stock in corporations constructing or acquiring vessels
      For the purposes of this section a vessel shall be considered as
    constructed or acquired by the taxpayer if constructed or acquired
    by a corporation at a time when the taxpayer owns at least 95 per
    centum of the total number of shares of each class of stock of the
    corporation.
    (m) Definitions
      The terms used in this section shall have the same meaning as in
    chapter 1 of the Internal Revenue Code.
    (n) "Contract for the construction" and "construction contract"
      defined
      The terms "contract for the construction" and "construction
    contract", as used in this section, shall include, in the case of a
    taxpayer who constructs a new vessel in a shipyard owned by such
    taxpayer, an agreement between such taxpayer and the Secretary of
    Transportation with respect to such construction and containing
    provisions deemed necessary or advisable by the Secretary of
    Transportation to carry out the purposes and policy of this
    section.
    (o) "Reconstruction and reconditioning" defined
      The terms "reconstruction and reconditioning", as used in this
    section, shall include the reconstruction, reconditioning, or
    modernization of a vessel for exclusive use on the Great Lakes,
    including the Saint Lawrence River and Gulf, if the Secretary of
    Transportation determines that the objectives of this chapter will
    be promoted by such reconstruction, reconditioning, or
    modernization, and, notwithstanding any other provisions of law,
    such vessel shall be deemed to be a "new vessel" within the meaning
    of this section for such reconstruction, reconditioning, or
    modernization.

-SOURCE-
    (June 29, 1936, ch. 858, title V, Sec. 511, as added Oct. 10, 1940,
    ch. 849, 54 Stat. 1106; amended June 17, 1943, ch. 130, 57 Stat.
    157; Dec. 23, 1944, ch. 714, 58 Stat. 920; July 17, 1952, ch. 939,
    Secs. 9-14, 66 Stat. 762-764; Pub. L. 86-237, Sec. 1, Sept. 8,
    1959, 73 Stat. 471; Pub. L. 87-303, Sec. 3, Sept. 26, 1961, 75
    Stat. 661; Pub. L. 87-782, Sec. 1, Oct. 10, 1962, 76 Stat. 796;
    Pub. L. 88-227, Sec. 1, Dec. 23, 1963, 77 Stat. 470; Pub. L. 88-
    595, Sec. 1, Sept. 12, 1964, 78 Stat. 943; Pub. L. 97-31, Sec.
    12(92), Aug. 6, 1981, 95 Stat. 161.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 102 of the Internal Revenue Code, referred to in subsec.
    (f), means section 102 of the Internal Revenue Code of 1939, which
    was classified to section 102 of former Title 26, Internal Revenue
    Code. Section 102 was repealed by section 7851(a)(1) of Title 26,
    Internal Revenue Code. For table of comparisons of the 1939 Code to
    the 1986 Code, see Table I preceding section 1 of Title 26. See
    also section 7851(e) of Title 26 for provision that references in
    the 1986 Code to a provision of the 1939 Code, not then applicable,
    shall be deemed a reference to the corresponding provision of the
    1986 Code, which is then applicable.
      Chapter 1 of the Internal Revenue Code, referred to in subsec.
    (m), means chapter 1 of the Internal Revenue Code of 1939, which
    was classified to chapter 1 of former Title 26, Internal Revenue
    Code. Chapter 1 was comprised of sections 1 to 482 of former Title
    26. Sections 1 to 142 and 145 to 482 were repealed by section
    7851(a)(1) of Title 26, Internal Revenue Code. Sections 143 and 144
    were repealed by section 7851(a)(2) of Title 26. For table of
    comparisons of the 1939 Code to the 1986 Code, see Table I
    preceding section 1 of Title 26. See also section 7851(e) of Title
    26 for provision that references in the 1986 Code to a provision of
    the 1939 Code, not then applicable, shall be deemed a reference to
    the corresponding provision of the 1986 Code, which is then
    applicable.

-MISC1-
                                AMENDMENTS                            
      1981 - Subsecs. (a), (b). Pub. L. 97-31, Sec. 12(92)(A),
    substituted "Secretary of Transportation" for "Commission" wherever
    appearing. For prior transfers of functions of the Commission,
    meaning the United States Maritime Commission, see Transfer of
    Functions note below.
      Subsec. (g). Pub. L. 97-31, Sec. 12(92), substituted "Secretary
    of Transportation" for "Commission" wherever appearing and in
    subpars. (A) and (B), substituted "him" for "it". For prior
    transfers of functions of the Commission, meaning the United States
    Maritime Commission, see Transfer of Functions note below.
      Subsecs. (h), (i), (n), (o). Pub. L. 97-31, Sec. 12(92)(A),
    substituted "Secretary of Transportation" for "Commission" wherever
    appearing. For prior transfers of functions of the Commission,
    meaning the United States Maritime Commission, see Transfer of
    Functions note below.
      1964 - Subsec. (h). Pub. L. 88-595 substituted "January 1, 1965"
    for "January 1, 1964" and "December 31, 1965" for "December 31,
    1964".
      1963 - Subsec. (h). Pub. L. 88-227 substituted "January 1, 1964"
    for "January 1, 1963" and "December 31, 1964" for "December 31,
    1963".
      1962 - Subsec. (h). Pub. L. 87-782 substituted "January 1, 1963"
    for "January 1, 1962" and "December 31, 1963" for "December 31,
    1962".
      1961 - Subsec. (h). Pub. L. 87-303 substituted "January 1, 1962"
    for "January 1, 1961" and "December 31, 1962" for "December 31,
    1961".
      1959 - Subsec. (h). Pub. L. 86-237 substituted "January 1, 1961"
    and "December 31, 1961" for "March 31, 1953" and "September 30,
    1953," respectively.
      1952 - Subsec. (b). Act July 17, 1952, Sec. 9, extended its
    provisions to the reconstruction and reconditioning of vessels.
      Subsec. (c). Act July 17, 1952, Sec. 10, struck out obsolete
    language.
      Subsec. (d). Act July 17, 1952, Sec. 11, provided for the
    adjustment in the tax basis of a vessel if the reserve funds are
    used for reconstruction, reconditioning, or liquidation of a
    purchase-money indebtedness on vessels.
      Subsec. (g). Act July 17, 1952, Sec. 12, provided that the
    reserve funds may be used for reconstruction, reconditioning, and
    liquidation of purchase money indebtedness, and extended the time
    of required commitment of deposits in order to avoid the imposition
    of taxes at the established rate.
      Subsec. (h). Act July 17, 1952, Sec. 13(a), extended extension
    period.
      Subsec. (i). Act July 17, 1952, Sec. 13(b), limited the
    additional 1.1% tax imposed on deposits in lieu of the capital-
    stock tax or declared excess profit tax to deposits made in
    taxable years ending on or before June 30, 1945.
      Subsec. (o). Act July 17, 1952, Sec. 14, added subsec. (o).
      1944 - Subsec. (c). Act Dec. 23, 1944, amended first sentence
    generally.
      Subsec. (n). Act Dec. 23, 1944, added subsec. (n).
      1943 - Subsec. (b). Act June 17, 1943, extended provisions of
    first sentence to ownership in whole or in part and to persons who
    had acquired or were having constructed a vessel or vessels.
      Subsec. (c). Act June 17, 1943, changed the dates of deposit in
    second sentence.
      Subsec. (g). Act June 17, 1943, inserted "(or in the discretion
    of the Commission, for a part interest therein)".
      Subsec. (h). Act June 17, 1943, substituted "Commission" for
    "Commissioner of Internal Revenue" at beginning of subsec. and
    inserted proviso.

                     EFFECTIVE DATE OF 1964 AMENDMENT                 
      Section 2 of Pub. L. 88-595 provided that: "The amendment made by
    the first section of this Act [amending this section] shall take
    effect December 31, 1964, or on the date of enactment of this Act
    [Sept. 12, 1964], whichever date first occurs."

                     EFFECTIVE DATE OF 1963 AMENDMENT                 
      Section 2 of Pub. L. 88-227 provided that: "The amendment made by
    the first section of this Act [amending this section] shall take
    effect December 31, 1963, or on the date of enactment of this Act
    [Dec. 23, 1963], whichever date first occurs."

                     EFFECTIVE DATE OF 1962 AMENDMENT                 
      Section 2 of Pub. L. 87-782 provided that: "The amendment made by
    the first section of this Act [amending this section] shall take
    effect December 31, 1962, or on the date of enactment of this Act
    [Oct. 10, 1962], whichever date first occurs."

                     EFFECTIVE DATE OF 1959 AMENDMENT                 
      Section 2 of Pub. L. 86-237 provided that: "The amendment made by
    the first section of this Act [amending this section] shall take
    effect June 30, 1959, or on the date of enactment of this Act
    [Sept. 8, 1959], whichever date first occurs."

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      For transfer of functions of United States Maritime Commission,
    see Reorg. Plan No. 6 of 1949, Reorg. Plan No. 21 of 1950, and
    Reorg. Plan No. 7 of 1961, set out under section 1111 of this
    Appendix.

-MISC2-
                            TERMINATION OF WAR                        
      Section 5 of act Aug. 8, 1947, ch. 515, 61 Stat. 917, as amended
    Apr. 20, 1949, ch. 82, 63 Stat. 56; Oct. 1, 1951, ch. 443, 65 Stat.
    366; July 16, 1952, ch. 913, 66 Stat. 737, provided: "For the
    purposes of the proviso of subsection (h) of section 511 of the
    Merchant Marine Act, 1936, as amended, added to such subsection by
    the Act of June 17, 1943 (57 Stat. 158) [subsec. (h) of this
    section], the present war shall be considered as having terminated
    on March 31, 1953."

-End-

-CITE-
    46 USC APPENDIX Sec. 1162                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER V - CONSTRUCTION-DIFFERENTIAL SUBSIDY

-HEAD-
    Sec. 1162. Limitation on restrictions

-STATUTE-
      (a) Except as provided in subsection (b) of this section,
    notwithstanding any other provision of law or contract, all
    restrictions and requirements under sections 1153, 1156, and 1212
    of this Appendix applicable to a liner vessel constructed,
    reconstructed, or reconditioned with the aid of construction-
    differential subsidy shall terminate upon the expiration of the 25-
    year period beginning on the date of the original delivery of the
    vessel from the shipyard.
      (b)(1) Except as provided in paragraph (2), the restrictions and
    requirements of section 1156 of this Appendix shall terminate upon
    the expiration of the 20-year period beginning on the date of the
    original delivery of the vessel from the shipyard for operation of
    a vessel in any domestic trade in which it has operated at any time
    since 1996.
      (2) Paragraph (1) shall not affect any requirement to make
    payments under section 1156 of this Appendix.

-SOURCE-
    (June 29, 1936, ch. 858, title V, Sec. 512, as added Pub. L. 104-
    239, Sec. 7, Oct. 8, 1996, 110 Stat. 3133; amended Pub. L. 108-
    136, div. C, title XXXV, Sec. 3532(b), Nov. 24, 2003, 117 Stat.
    1818.)

-MISC1-
                                AMENDMENTS                            
      2003 - Pub. L. 108-136 substituted "(a) Except as provided in
    subsection (b) of this section, notwithstanding" for
    "Notwithstanding" and added subsec. (b).

                     EFFECTIVE DATE OF 2003 AMENDMENT                 
      Amendment by Pub. L. 108-136 effective Oct. 1, 2004, see section
    3537(a) of Pub. L. 108-136, set out in an Effective Date note under
    section 53101 of Title 46, Shipping.

-End-

-CITE-
    46 USC APPENDIX SUBCHAPTER VI - VESSEL OPERATING
           ASSISTANCE PROGRAMS                             01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER VI - VESSEL OPERATING ASSISTANCE PROGRAMS

-HEAD-
           SUBCHAPTER VI - VESSEL OPERATING ASSISTANCE PROGRAMS       

-End-

-CITE-
    46 USC APPENDIX Part A - Operating-Differential
           Subsidy Program                                 01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER VI - VESSEL OPERATING ASSISTANCE PROGRAMS
    Part A - Operating-Differential Subsidy Program

-HEAD-
              PART A - OPERATING-DIFFERENTIAL SUBSIDY PROGRAM          

-End-

-CITE-
    46 USC APPENDIX Sec. 1171                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER VI - VESSEL OPERATING ASSISTANCE PROGRAMS
    Part A - Operating-Differential Subsidy Program

-HEAD-
    Sec. 1171. Subsidy authorized for operation of vessels in foreign
      trade or in off-season cruises

-STATUTE-
    (a) Application for subsidy; conditions precedent to granting
      The Secretary of Transportation is authorized and directed to
    consider the application of any citizen of the United States for
    financial aid in the operation of a vessel or vessels, which are to
    be used in an essential service in the foreign commerce of the
    United States or in such service and in cruises authorized under
    section 1183 of this Appendix. In this subchapter VI the term
    "essential service" means the operation of a vessel on a service,
    route, or line described in section 1121(a) of this Appendix or in
    bulk cargo carrying service described in section 1121(b) of this
    Appendix. No such application shall be approved by the Secretary of
    Transportation unless he determines that (1) the operation of such
    vessel or vessels in an essential service is required to meet
    foreign-flag competition and to promote the foreign commerce of the
    United States except to the extent such vessels are to be operated
    on cruises authorized under section 1183 of this Appendix, and that
    such vessel or vessels were built in the United States, or have
    been documented under the laws of the United States not later than
    February 1, 1928, or actually ordered and under construction for
    the account of citizens of the United States prior to such date;
    (2) the applicant owns, or leases or can and will build or
    purchase, or lease, a vessel or vessels of the size, type, speed,
    and number, and with the proper equipment required to enable him to
    operate in an essential service, in such manner as may be necessary
    to meet competitive conditions, and to promote foreign commerce;
    (3) the applicant possesses the ability, experience, financial
    resources, and other qualifications necessary to enable him to
    conduct the proposed operations of the vessel or vessels as to meet
    competitive conditions and promote foreign commerce; (4) the
    granting of the aid applied for is necessary to place the proposed
    operations of the vessel or vessels on a parity with those of
    foreign competitors, and is reasonably calculated to carry out
    effectively the purposes and policy of this chapter. To the extent
    the application covers cruises, as authorized under section 1183 of
    this Appendix, the Secretary of Transportation may make the portion
    of this last determination relating to parity on the basis that any
    foreign flag cruise from the United States competes with any
    American flag cruise from the United States.
    (b) Statements as to financial interests to accompany application;
      penalty for false statements
      Every application for an operating-differential subsidy under the
    provisions of this subchapter shall be accompanied by statements
    disclosing the names of all persons having any pecuniary interest,
    direct or indirect, in such application, or in the ownership or use
    of the vessel or vessels, routes, or lines covered thereby, and the
    nature and extent of any such interest, together with such
    financial and other statements as may be required by the Secretary
    of Transportation. All such statements shall be under oath or
    affirmation and in such form as the Secretary of Transportation
    shall prescribe. Any person who, in an application for financial
    aid under this subchapter or in any statement required to be filed
    therewith, willfully makes any untrue statement of a material fact,
    shall be guilty of a misdemeanor.

-SOURCE-
    (June 29, 1936, ch. 858, title VI, Sec. 601, 49 Stat. 2001; Pub. L.
    87-45, Sec. 2, May 27, 1961, 75 Stat. 90; Pub. L. 91-469, Secs. 14,
    35(a), (h), Oct. 21, 1970, 84 Stat. 1023, 1035, 1036; Pub. L. 91-
    603, Sec. 4(c), (d), Dec. 31, 1970, 84 Stat. 1675; Pub. L. 97-31,
    Sec. 12(93), Aug. 6, 1981, 95 Stat. 161.)

-MISC1-
                                AMENDMENTS                            
      1981 - Subsec. (a). Pub. L. 97-31 substituted "Secretary of
    Transportation" for "Secretary of Commerce" in two places and for
    "Commission" in one place. For prior transfers of functions of the
    Commission, meaning the United States Maritime Commission, see
    Transfer of Functions note below.
      Subsec. (b). Pub. L. 97-31 substituted "Secretary of
    Transportation" for "Commission" in two places. For prior transfers
    of functions of the Commission, meaning the United States Maritime
    Commission, see Transfer of Functions note below.
      1970 - Subsec. (a). Pub. L. 91-603 included the leasing of
    vessels in cl. (2).
      Pub. L. 91-469 inserted definition of "essential service", and
    substituted "an essential service" for "such service, route, or
    line" in cl. (1) and "in an essential service" for "and maintain
    the service, route, or line" in cl. (2); substituted "Secretary of
    Commerce" for "Commission" in two places; and substituted "he" for
    "it" in third sentence preceding "determines that", respectively.
      1961 - Subsec. (a). Pub. L. 87-45 required the Federal Maritime
    Board to consider applications for financial aid in the operation
    of vessels in cruises under section 1183 of this Appendix, and
    permitted the Board, to the extent the application covers such
    cruises, to make the portion of the determination relating to
    parity on the basis that any foreign flag cruise from the United
    States competes with any American flag cruise from the United
    States.

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      For transfer of functions of United States Maritime Commission,
    see Reorg. Plan No. 6 of 1949, Reorg. Plan No. 21 of 1950, and
    Reorg. Plan No. 7 of 1961, set out under section 1111 of this
    Appendix.

-End-

-CITE-
    46 USC APPENDIX Sec. 1172                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER VI - VESSEL OPERATING ASSISTANCE PROGRAMS
    Part A - Operating-Differential Subsidy Program

-HEAD-
    Sec. 1172. Determination of necessity of subsidy to meet
      competition

-STATUTE-
      Except with respect to cruises authorized under section 1183 of
    this Appendix, no contract for an operating-differential subsidy
    shall be made by the Secretary of Transportation for the operation
    of a vessel or vessels to meet foreign competition, except direct
    foreign-flag competition, until and unless the Secretary of
    Transportation, after a full and complete investigation and
    hearing, shall determine that an operating-differential subsidy is
    necessary to meet competition of foreign-flag ships.

-SOURCE-
    (June 29, 1936, ch. 858, title VI, Sec. 602, 49 Stat. 2002; June
    23, 1938, ch. 600, Sec. 40(b), 52 Stat. 964; Pub. L. 87-45, Sec. 3,
    May 27, 1961, 75 Stat. 91; Pub. L. 91-469, Sec. 35(a), Oct. 21,
    1970, 84 Stat. 1035; Pub. L. 97-31, Sec. 12(94), Aug. 6, 1981, 95
    Stat. 161.)

-MISC1-
                                AMENDMENTS                            
      1981 - Pub. L. 97-31 substituted "Secretary of Transportation"
    for "Secretary of Commerce" wherever appearing.
      1970 - Pub. L. 91-469 substituted "Secretary of Commerce" for
    "Commission" in two places.
      1961 - Pub. L. 87-45 excepted cruises authorized under section
    1183 of this Appendix.
      1938 - Act June 23, 1938, substituted "operating-differential
    subsidy" for "operating subsidy".

-End-

-CITE-
    46 USC APPENDIX Sec. 1173                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER VI - VESSEL OPERATING ASSISTANCE PROGRAMS
    Part A - Operating-Differential Subsidy Program

-HEAD-
    Sec. 1173. Contracts for payment of subsidy

-STATUTE-
    (a) Authorization of contracts
      If the Secretary of Transportation approves the application, he
    may enter into a contract with the applicant for the payment of an
    operating-differential subsidy determined in accordance with the
    provisions of subsection (b) of this section, for the operation of
    such vessel or vessels in an essential service and in cruises
    authorized under section 1183 of this Appendix for a period not
    exceeding twenty years, and subject to such reasonable terms and
    conditions, consistent with this chapter, as the Secretary of
    Transportation shall require to effectuate the purposes and policy
    of this chapter, including a performance bond with approved
    sureties, if such bond is required by the Secretary of
    Transportation.
    (b) Amount of subsidy
      Such contract shall provide, except as the parties should agree
    upon a lesser amount, that the amount of the operating-differential
    subsidy for the operation of vessels in an essential service shall
    equal the excess of the subsidizable wage costs of the United
    States officers and crews, the fair and reasonable cost of
    insurance, subsistence of officers and crews on passenger vessels,
    as defined in section 1183 of this Appendix, maintenance, and
    repairs not compensated by insurance, incurred in the operation
    under United States registry of the vessel or vessels covered by
    the contract, over the estimated fair and reasonable cost of the
    same items of expense (after deducting therefrom any estimated
    increase in such items necessitated by features incorporated
    pursuant to the provisions of section 1151(b) of this Appendix) if
    such vessel or vessels were operated under the registry of a
    foreign country whose vessels are substantial competitors of the
    vessel or vessels covered by the contract: Provided, however, That
    the Secretary of Transportation may, with respect to any vessel in
    an essential bulk cargo carrying service as described in section
    1121(b) of this Appendix, pay, in lieu of the operating-
    differential subsidy provided by this subsection (b), such sums as
    he shall determine to be necessary to make the cost of operating
    such vessel competitive with the cost of operating similar vessels
    under the registry of a foreign country. For any period during
    which a vessel cruises as authorized by section 1183 of this
    Appendix, operating-differential subsidy shall be computed as
    though the vessel were operating on the essential service to which
    the vessel is assigned: Provided, however, That if the cruise
    vessel calls at a port or ports outside of its assigned service,
    but which is served with passenger vessels (as defined in section
    1183 of this Appendix) by another subsidized operator at an
    operating-differential subsidy rate for wages lower than the cruise
    vessel has on its assigned essential service, the operating-
    differential subsidy rates for each of the subsidizable items for
    each day (a fraction of a day to count as a day) that the vessel
    stops at such port shall be at the respective rates applicable to
    the subsidized operator regularly serving the area.
    (c) "Collective bargaining costs", "base period costs", "base
      period", and "subsidizable wage costs of United States officers
      and crews" defined; determination of collective bargaining costs
      and establishment of new base periods; wage change index
      (1) When used in this section - 
      (A) The term "collective bargaining costs" means the annual cost,
    calculated on the basis of the per diem rate of expense as of any
    date, of all items of expense required of the applicant through
    collective bargaining or other agreement, covering the employ of
    United States officers and crew of a vessel, including payments
    required by law to assure old-age pensions, unemployment benefits,
    or similar benefits and taxes or other governmental assessments on
    crew payrolls, but excluding subsistence of officers and crews on
    vessels other than passenger vessels as defined in section 1183 of
    this Appendix and costs relating to:
        (i) the officers or members of the crew that the Secretary of
      Transportation has found, prior to the award of a contract for
      the construction or reconstruction of a vessel, to be unnecessary
      for the efficient and economical operation of such vessel:
      Provided, That the Secretary of Transportation shall afford
      representatives of the collective-bargaining unit or units
      responsible for the manning of the vessel an opportunity to
      comment on such finding prior to the effective date of such
      finding: And provided further, That in determining whether
      officers or members of the crew are necessary for the efficient
      and economical operation of such vessel, the Secretary of
      Transportation shall give due consideration to, but shall not be
      bound by, wage and manning scales and working conditions required
      by a bona fide collective-bargaining agreement, or
        (ii) those officers or members of the crew that the Secretary
      of Transportation has found, prior to ninety days following
      October 21, 1970, to be unnecessary for the efficient and
      economical operation of the vessel.

      (B) The term "base period costs" means for the base period
    beginning July 1, 1970, and ending June 30, 1971, the collective-
    bargaining costs as of January 1, 1971, less all other items of
    cost that have been disallowed by the Secretary of Transportation
    prior to ninety days following October 21, 1970, and not already
    excluded from collective-bargaining costs under subparagraph (A)(i)
    or (A)(ii) of this subsection. In any subsequent base period the
    term "base period costs" means the average of the subsidizable wage
    cost of United States officers and crews for the preceding annual
    period ending June 30 (calculated without regard to the limitation
    of the last sentence of paragraph (D) of this subdivision but
    increased or decreased by the increase or decrease in the index
    described in subdivision (3) of this subsection from January 1 of
    such annual period to January 1 of the base period), and the
    collective-bargaining costs as of January 1 of the base period:
    Provided, That in no event shall the base period cost be such that
    the difference between the base period cost and the collective-
    bargaining costs as of January 1 of any base period subsequent to
    the first base period exceeds five-fourths of 1 per centum of the
    collective-bargaining costs as of such January 1 multiplied by the
    number of years that have elapsed since the most recent base
    period.
      (C) The term "base period" means any annual period beginning July
    1, and ending June 30 with respect to which a base period cost is
    established.
      (D) The term "subsidizable wage costs of United States officers
    and crews" in any period other than a base period means the most
    recent base period costs increased or decreased by the increase or
    decrease from January 1 of such base period to January 1 of such
    period in the index described in subdivision (3) hereof, and with
    respect to a base period means the base period cost. The
    subsidizable wage costs of United States officers and crews in any
    period other than a base period shall not be less than 90 per
    centum of the collective-bargaining costs as of January 1 of such
    period nor greater than 110 per centum of such collective-
    bargaining costs.
      (2) The Secretary of Transportation shall determine the
    collective-bargaining costs on ships in subsidized operation as of
    January 1, 1971, and as of each January 1 thereafter, and shall as
    of intervals of not less than two years nor more than four years,
    establish a new base period cost, except that the Secretary shall
    not establish a new base period unless he announces his intention
    to do so prior to the December 31 that would be included in the new
    base period.
      (3) The Bureau of Labor Statistics shall compile the index
    referred to in subdivision (1). Such index shall consist of the
    average annual change in wages and benefits placed into effect for
    employees covered by collective-bargaining agreements with equal
    weight to be given to changes affecting employees in the
    transportation industry (excluding the offshore maritime industry)
    and to changes affecting employees in private nonagricultural
    industries other than transportation. Such index shall be based on
    the materials regularly used by the Bureau of Labor Statistics in
    compiling its regularly published statistical series on wage and
    benefit changes arrived at through collective bargaining. Such
    materials shall remain confidential and not be subject to
    disclosure.
    (d) Foreign wage computation; foreign manning
      Each foreign wage cost computation shall be made after an
    opportunity is given to the contractor to submit in writing and in
    timely fashion all relevant data within his possession. In making
    the computation, the Secretary shall consider all relevant matter
    so presented and all foreign wage cost data collected at his
    request or on his behalf. Such foreign cost data shall be made
    available to an interested contractor, unless the Secretary shall
    find that disclosure of the data will prevent him from obtaining
    such data in the future. In determining foreign manning for
    purposes of this section, the foreign manning determined for any
    ship type with respect to any base period shall not be redetermined
    until the beginning of a new base period.
    (e) Monthly payment of wage subsidy; procedures for calculation and
      payment of subsidy on certain expenses
      The wage subsidy shall be payable monthly for the voyages
    completed during the month, upon the contractor's certification
    that the subsidized vessels were in authorized service during the
    month. The Secretary of Transportation shall prescribe procedures
    for the calculation and payment of subsidy on items of expense
    which are included in "collective-bargaining costs" but are not
    included in the daily rate because they are unpredictably timed.
    (f) Monthly percentage payment of other than wage subsidy; security
      for refund of overpayments; payment of remainder after audit of
      voyage accounts
      Ninety percent of the amount of the insurance and maintenance and
    repair and subsistence of officers and crews subsidy shall be
    payable monthly for the voyages completed during the month on the
    basis of the subsidy estimated to have accrued with respect to such
    voyages. Any such payment shall be made only after there has been
    furnished to the Secretary of Transportation such security as he
    deems to be reasonable and necessary to assure refund of any
    overpayment. The contractor and the Secretary of Transportation
    shall audit the voyage accounts as soon as practicable after such
    payment. The remaining 10 percent of such subsidy shall be payable
    after such audit.

-SOURCE-
    (June 29, 1936, ch. 858, title VI, Sec. 603, 49 Stat. 2002; Aug. 4,
    1939, ch. 417, Sec. 8, 53 Stat. 1185; Pub. L. 87-45, Sec. 4, May
    27, 1961, 75 Stat. 91; Pub. L. 87-243, Sept. 14, 1961, 75 Stat.
    513; Pub. L. 91-469, Secs. 15-17, 35(a), (i), Oct. 21, 1970, 84
    Stat. 1023, 1024, 1035, 1036; Pub. L. 97-31, Sec. 12(94), Aug. 6,
    1981, 95 Stat. 161.)

-MISC1-
                                AMENDMENTS                            
      1981 - Pub. L. 97-31 substituted "Secretary of Transportation"
    for "Secretary of Commerce" wherever appearing.
      1970 - Subsec. (a). Pub. L. 91-469, Secs. 15, 35(a), (i),
    substituted "an essential service" for "such service, route, or
    line," "Secretary of Commerce" for "Commission" in three places,
    and "he" for "it" before "may enter", respectively.
      Subsec. (b). Pub. L. 91-469, Sec. 16, in amending first sentence,
    inserted ", except as the parties should agree upon a lesser
    amount," after "shall provide", "subsistence of officers and crews
    on passenger vessels, as defined in section 1183 of this Appendix,"
    after "cost of insurance," and proviso for payment of necessary
    sums to make operating costs of American-flag vessels providing
    bulk cargo carrying services competitive with operating costs of
    similar vessels under foreign registry, and substituted "vessels in
    an essential service shall equal the excess of the subsidizable
    wage costs of the United States officers and crews," for "vessels
    on a service, route, or line shall not exceed the excess of",
    "maintenance, and repairs not compensated by insurance" for
    "maintenance, repairs not compensated by insurance," and "incurred"
    for "wages and subsistence of officers and crews, and any other
    items of expense in which the Commission shall find and determine
    that the applicant is at a substantial disadvantage in competition
    with vessels of the foreign country hereinafter referred to,".
      Subsecs. (c) to (e). Pub. L. 91-469, Sec. 17(1), added subsecs.
    (c) to (e). Former subsec. (c) redesignated (f).
      Subsec. (f). Pub. L. 91-469, Sec. 17, redesignated former subsec.
    (c) as (f), substituted provision for monthly payment of ninety
    percent of subsidy (insurance and maintenance and repair and
    subsistence of officers and crews) on basis of estimated accrual of
    subsidy and payment of remaining ten percent after audit of voyage
    accounts for prior provisions for determination and payment of
    subsidy on basis of final accounting made annually or after some
    agreed fixed period and for payments on account limited to 75 per
    centum of estimated accrued amount and an additional 15 per centum
    for any particular voyage after an audit, substituted provision to
    "assure" rather than "insure" refund, and repealed second par.
    prohibition against payment of subsidy until contractor provided
    evidence that minimum wages prescribed by Secretary of Commerce
    under section 1131(a) of this Appendix had been paid to ships
    personnel.
      1961 - Subsec. (a). Pub. L. 87-45, Sec. 4(a), inserted "and in
    cruises authorized under section 1183 of this Appendix" after "in
    such service, route, or line".
      Subsec. (b). Pub. L. 87-45, Sec. 4(b), inserted provisions for
    the computation of the subsidy for periods during which a vessel
    cruises as authorized by section 1183 of this Appendix.
      Subsec. (c). Pub. L. 87-243 increased, effective on and after
    July 1, 1962, the amount payable on account from not more than 75
    per centum to not more than 90 per centum of the amount estimated
    to have accrued on account of such subsidy, and reduced the amount
    payable to the contractor after the audit of the voyage from 15 to
    5 per centum.
      1939 - Subsec. (c). Act Aug. 4, 1939, permitted payment to the
    contractor of an additional 15 per centum.

     OPERATING-DIFFERENTIAL SUBSIDY CONTRACTS; AMENDMENT AND RECAPTURE
                                PROVISIONS
      Section 40 of Pub. L. 91-469 provided that:
      "(a) The amendments made by this Act [see Short Title of 1970
    Amendment note set out under section 1245 of this Appendix] shall
    not affect any contract with the Secretary of Commerce or his
    delegates that is in effect on the date of enactment of this Act
    [Oct. 21, 1970]. At the request of the other party to such
    operating-differential subsidy contract, the Secretary of Commerce
    shall amend such contract so as to be in accordance with all of the
    amendments made by this Act. No amendment made by this Act shall be
    incorporated in such contract unless all such amendments are
    incorporated in such contract, except that if the other party
    elects to continue under the "old fund" as provided in section 607
    as amended by section 21 of this Act [section 1177 of this
    Appendix], such amendment need not be incorporated in such
    contract. Until such contract is amended or if such contract is not
    amended, it shall be administered in accordance with the provisions
    of the Merchant Marine Act, 1936 [this chapter] as they existed
    immediately prior to enactment of this Act. Nothing in section 16
    of this Act amending section 603 of the Merchant Marine Act, 1936
    [subsec. (b) of this section] or in the contracts made thereunder,
    shall be deemed to affect or to change existing law or contracts
    with respect to the proceedings now pending before the Secretary of
    Commerce relating to the payment of subsidy in respect of cargoes
    covered by section 901(b)(1) of the Merchant Marine Act, 1936
    [section 1241(b)(1) of this Appendix], section 616(a) of Title 15,
    United States Code, or section 2631 of Title 10, United States
    Code.
      "(b) If any operating-differential subsidy contract in existence
    on the date of enactment of this Act [Oct. 21, 1970] is amended by
    including all of the amendments made by this Act or all of the
    amendments made by this Act other than those made by section 21
    [amending section 1177 of this Appendix], the operator may elect to
    terminate his recapture period as of the date of such contract
    amendment and have his recapture computed on the basis of the
    shortened period, or he may elect to continue his recapture period
    until the end of its ten-year term and continue his recapture
    obligations as provided by the Merchant Marine Act, 1936, prior to
    the enactment of this Act [see Short Title of 1970 Amendment note
    set out under section 1245 of this Appendix] until the end of such
    ten-year period. The amendments in either event shall provide that,
    with respect to seafaring personnel, in determining the rights and
    obligations of the contractor under such contract, the limitation
    of section 805(c) of the Merchant Marine Act, 1936 [section 1223(c)
    of this Appendix], as it existed immediately before the enactment
    of this Act [Oct. 21, 1970] shall not apply."

-End-

-CITE-
    46 USC APPENDIX Sec. 1174                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER VI - VESSEL OPERATING ASSISTANCE PROGRAMS
    Part A - Operating-Differential Subsidy Program

-HEAD-
    Sec. 1174. Additional subsidy; when authorized

-STATUTE-
      If in the case of any particular foreign-trade route the
    Secretary of Transportation shall find after consultation with the
    Secretary of State, that the subsidy provided for in this
    subchapter is in any respect inadequate to offset the effect of
    governmental aid paid to foreign competitors, he may grant such
    additional subsidy as he determines to be necessary for that
    purpose.

-SOURCE-
    (June 29, 1936, ch. 858, title VI, Sec. 604, 49 Stat. 2003; June
    23, 1938, ch. 600, Sec. 21, 52 Stat. 959; Aug. 4, 1939, ch. 417,
    Sec. 9, 53 Stat. 1185; Pub. L. 97-31, Sec. 12(95), Aug. 6, 1981, 95
    Stat. 162.)

-MISC1-
                                AMENDMENTS                            
      1981 - Pub. L. 97-31 substituted "Secretary of Transportation"
    for "Commission" and "he" for "it", and struck out provision
    relating to subsidy voting requirements. For prior transfers of
    functions of the Commission, meaning the United States Maritime
    Commission, see Transfer of Functions note set out below.
      1939 - Act Aug. 4, 1939, reduced requirement in proviso from
    unanimous vote to vote of four commissioners.
      1938 - Act June 23, 1938, authorized additional subsidies only
    where the Commission (which had reference to United States Maritime
    Commission) by unanimous vote finds after consultation with the
    Secretary of State that the subsidy is inadequate.

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      For transfer of functions of United States Maritime Commission,
    see Reorg. Plan No. 6 of 1949, Reorg. Plan No. 21 of 1950, and
    Reorg. Plan No. 7 of 1961, set out under section 1111 of this
    Appendix.

-End-

-CITE-
    46 USC APPENDIX Sec. 1175                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER VI - VESSEL OPERATING ASSISTANCE PROGRAMS
    Part A - Operating-Differential Subsidy Program

-HEAD-
    Sec. 1175. Vessels excluded from subsidy

-STATUTE-
    (a) Vessels engaged in coastwise or intercoastal trade; vessels on
      inland waterways
      No operating-differential subsidy shall be paid for the operation
    of any vessel on a voyage on which it engages in coastwise or
    intercoastal trade: Provided, however, That such subsidy may be
    paid on a round-the-world voyage or a round voyage from the west
    coast of the United States to a European port or ports or a round
    voyage from the Atlantic coast to the Orient which includes
    intercoastal ports of the United States or a voyage in foreign
    trade on which the vessel may stop at the State of Hawaii, or an
    island possession or island territory of the United States, and if
    the subsidized vessel earns any gross revenue on the carriage of
    mail, passengers, or cargo by reason of such coastal or
    intercoastal trade the subsidy payment for the entire voyage shall
    be reduced by an amount which bears the same ratio to the subsidy
    otherwise payable as such gross revenue bears to the gross revenue
    derived from the entire voyage. No vessel operating on the inland
    waterways of the United States shall be considered for the purposes
    of this chapter to be operating in foreign trade.
    (b) Vessels more than 25 years old
      No operating-differential subsidy shall be paid for the operation
    of a vessel after the calendar year the vessel becomes 25 years of
    age, unless the Secretary of Transportation has determined, before
    October 8, 1996, that it is in the public interest to grant such
    financial aid for the operation of such vessel.
    (c) Vessels to be operated in an essential service served by
      citizens of United States
      No contract shall be made under this subchapter with respect to a
    vessel to be operated in an essential service served by citizens of
    the United States which would be in addition to the existing
    service, or services, unless the Secretary of Transportation shall
    determine after proper hearing of all parties that the service
    already provided by vessels of United States registry is
    inadequate, and that in the accomplishment of the purposes and
    policy of this chapter additional vessels should be operated
    thereon; and no contract shall be made with respect to a vessel
    operated or to be operated in an essential service served by two or
    more citizens of the United States with vessels of United States
    registry, if the Secretary of Transportation shall determine the
    effect of such a contract would be to give undue advantage or be
    unduly prejudicial, as between citizens of the United States, in
    the operation of vessels in such essential service unless following
    public hearing, due notice of which shall be given to each operator
    serving such essential service, the Secretary of Transportation
    shall find that it is necessary to enter into such contract in
    order to provide adequate service by vessels of United States
    registry. The Secretary of Transportation in determining for the
    purposes of this section whether services are competitive, shall
    take into consideration the type, size, and speed of the vessels
    employed, whether passenger or cargo, or combination passenger and
    cargo, vessels, the ports or ranges between which they run, the
    character of cargo carried, and such other facts as he may deem
    proper.

-SOURCE-
    (June 29, 1936, ch. 858, title VI, Sec. 605, 49 Stat. 2003; July
    17, 1952, ch. 939, Sec. 15, 66 Stat. 764; Pub. L. 86-3, Sec.
    18(b)(2), Mar. 18, 1959, 73 Stat. 12; Pub. L. 86-518, Sec. 1, June
    12, 1960, 74 Stat. 216; Pub. L. 89-348, Sec. 1(9), Nov. 8, 1965, 79
    Stat. 1310; Pub. L. 91-469, Secs. 18, 19, 26(b), 35(a), (j), Oct.
    21, 1970, 84 Stat. 1025, 1026, 1034-1036; Pub. L. 97-31, Sec.
    12(96), Aug. 6, 1981, 95 Stat. 162; Pub. L. 104-239, Sec. 3(a),
    Oct. 8, 1996, 110 Stat. 3126.)

-MISC1-
                                AMENDMENTS                            
      1996 - Subsec. (b). Pub. L. 104-239 amended subsec. (b)
    generally. Prior to amendment, subsec. (b) read as follows: "No
    operating-differential subsidy shall be paid for the operation of a
    vessel that is more than twenty-five years of age unless the
    Secretary of Transportation finds that it is to the public interest
    to grant such financial aid for the operation of such vessel and
    enters a formal order thereon."
      1981 - Subsecs. (b), (c). Pub. L. 97-31 substituted "Secretary of
    Transportation" for "Secretary of Commerce" wherever appearing.
      1970 - Subsec. (a). Pub. L. 91-469, Sec. 26(b), struck out "on
    the Great Lakes or" after "No vessel operating" in last sentence.
      Subsec. (b). Pub. L. 91-469, Sec. 18, substituted "unless the
    Secretary of Commerce" for "unless the Commission" and deleted
    preceding such words "except one whose life expectancy has been
    determined as provided in section 1177(b) of this Appendix for a
    period in no case to exceed the life expectancy determined
    thereunder,".
      Subsec. (c). Pub. L. 91-469, Secs. 19, 35(a), (j), substituted
    "in an essential service" for "on a service, route, or line", "an
    essential service" for "a service, route, or line", and "such
    essential service" for "competitive services, routes, or lines,"
    and struck out "in such service, route, or line" before "is
    inadequate" in first sentence; substituted "Secretary of Commerce"
    for "Commission" in four places; and substituted "he" for "it"
    before "may deem" in last sentence, respectively.
      1965 - Subsec. (b). Pub. L. 89-348 struck out provisions which
    required an annual report covering each case and the reasons
    therefor in which an exception is made to the prohibition against
    payment of an operating-differential subsidy for the operation of a
    vessel beyond its economic life.
      1960 - Subsec. (b). Pub. L. 86-518 substituted "twenty-five
    years" for "twenty years".
      1959 - Subsec. (a). Pub. L. 86-3 included stops at the State of
    Hawaii.
      1952 - Subsec. (b). Act July 17, 1952, permitted the
    recomputation of the life-expectancy of a reconstructed or
    reconditioned vessel in use under an operating differential-subsidy
    contract, and provided for recomputation of depreciation changes.

                     EFFECTIVE DATE OF 1960 AMENDMENT                 
      Amendment by Pub. L. 86-518 applicable only to vessels delivered
    by the shipbuilder on or after Jan. 1, 1946, and with respect to
    such vessels shall become effective on Jan. 1, 1960, and with
    respect to vessels delivered by the shipbuilder before Jan. 1,
    1946, the provisions of this chapter existing immediately before
    June 12, 1960, shall continue in effect, see section 8(a) of Pub.
    L. 86-518, set out as a note under section 1125 of this Appendix.

     REVISION OF CONTRACT, COMMITMENTS TO INSURE MORTGAGES, MORTGAGES,
      AND MORTGAGE INSURANCE CONTRACTS ENTERED INTO PRIOR TO JUNE 12,
                                   1960
      For provisions authorizing revision, see section 8(c) of Pub. L.
    86-518, set out as a note under section 1125 of this Appendix.

      COMMERCIAL EXPECTANCY OR PERIOD OF DEPRECIATION OF TANKERS AND
                        OTHER LIQUID BULK CARRIERS
      Nothing in any amendment made by Pub. L. 86-518 to operate or be
    interpreted to change from 20 to 25 years the provisions of this
    chapter relating to the commercial expectancy or period of
    depreciation of any tanker or other liquid bulk carrier, see
    section 9 of Pub. L. 86-518, set out as a note under section 1125
    of this Appendix.

-End-

-CITE-
    46 USC APPENDIX Sec. 1176                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER VI - VESSEL OPERATING ASSISTANCE PROGRAMS
    Part A - Operating-Differential Subsidy Program

-HEAD-
    Sec. 1176. Readjustments; change in service; withdrawal from
      service; payment of excess profits; wages, etc.; American
      materials

-STATUTE-
      Every contract for an operating-differential subsidy under this
    subchapter shall provide (1) that the amount of the future payments
    to the contractor shall be subject to review and readjustment from
    time to time, but not more frequently than once a year, at the
    instance of the Secretary of Transportation or of the contractor.
    If any such readjustment cannot be reached by mutual agreement, the
    Secretary of Transportation, on his own motion or on the
    application of the contractor, shall, after a proper hearing,
    determine the facts and make such readjustment in the amount of
    such future payments as he may determine to be fair and reasonable
    and in the public interest. The testimony in every such proceeding
    shall be reduced to writing and filed in the office of the
    Secretary of Transportation. His decision shall be based upon and
    governed by the changes which may have occurred since the date of
    the said contract, with respect to the items theretofore considered
    and on which such contract was based, and other conditions
    affecting shipping, and shall be promulgated in a formal order,
    which shall be accompanied by a report in writing in which the
    Secretary of Transportation shall state his findings of fact; (2)
    that the compensation to be paid under it shall be reduced, under
    such terms and in such amounts as the Secretary of Transportation
    shall determine, for any periods in which the vessel or vessels are
    laid up; (3) that if the Secretary of Transportation shall
    determine that a change in an essential service, which is receiving
    an operating-differential subsidy under this subchapter, is
    necessary in the accomplishment of the purposes of this chapter, it
    may make such change upon such readjustment of payments to the
    contractor as shall be arrived at by the method prescribed in
    clause (1) of these conditions; (4) that if at any time the
    contractor receiving an operating-differential subsidy claims that
    he cannot maintain and operate his vessels in such an essential
    service, with a reasonable profit upon his investment, and applies
    to the Secretary of Transportation for a modification or rescission
    of his contract to maintain such essential service, and the
    Secretary of Transportation determines that such claim is proved
    the Secretary of Transportation shall modify or rescind such
    contract and permit the contractor to withdraw such vessels from
    such essential service upon a date fixed by the Secretary of
    Transportation, and upon the date of such withdrawal the further
    payment of the operating differential subsidy shall cease and the
    contractor be discharged from any further obligation under such
    contract; (5) that the contractor shall conduct his operations with
    respect to essential services and any services authorized under
    section 1183 of this Appendix, covered by his contract in an
    economical and efficient manner, and (6) that whenever practicable,
    an operator who receives subsidy with respect to subsistence of
    officers and crews shall use as such subsistence items only
    articles, materials, and supplies of the growth, production, and
    manufacture of the United States, as defined in section 1155 of
    this Appendix, except when it is necessary to purchase supplies
    outside the United States to enable such vessel to continue and
    complete her voyage, and an operator who receives subsidy with
    respect to repairs shall perform such repairs within any of the
    United States or the Commonwealth of Puerto Rico, except in an
    emergency.

-SOURCE-
    (June 29, 1936, ch. 858, title VI, Sec. 606, 49 Stat. 2004; June
    23, 1938, ch. 600, Sec. 22, 52 Stat. 960; July 17, 1952, ch. 939,
    Sec. 16, 66 Stat. 764; May 10, 1956, ch. 247, Sec. 1, 70 Stat. 148;
    Pub. L. 86-624, Sec. 35(b), July 12, 1960, 74 Stat. 421; Pub. L. 87-
    45, Sec. 5, May 27, 1961, 75 Stat. 91; Pub. L. 91-469, Secs. 20,
    35(a), (k), Oct. 21, 1970, 84 Stat. 1026, 1035, 1036; Pub. L. 97-
    31, Sec. 12(96), Aug. 6, 1981, 95 Stat. 162.)

-MISC1-
                                AMENDMENTS                            
      1981 - Pub. L. 97-31 substituted "Secretary of Transportation"
    for "Secretary of Commerce" wherever appearing.
      1970 - Pub. L. 91-469, Sec. 35(a), substituted "Secretary of
    Commerce" for "Commission" wherever appearing.
      Cl. (1). Pub. L. 91-469, Sec. 35(k)(1)-(3), substituted "his" for
    "its" in two places, "he" for "it", and "His" for "Its",
    respectively.
      Cl. (3). Pub. L. 91-469, Secs. 20(1), 35(k)(2), substituted "and
    essential service" for "the service, route, or line" and "he" for
    "it", respectively.
      Cl. (4). Pub. L. 91-469, Sec. 20(2), (3), substituted "in such an
    essential service" for "on such service, route, or line" and
    "essential service" for "service, route, or line" in two places,
    respectively.
      Cl. (5). Pub. L. 91-469, Sec. 20(4), (5), (6)-(9), struck out cl.
    (5) providing that when at the end of any ten-year period the
    contractor's net profit on his subsidized vessels has averaged more
    than 10 percent of his capital necessarily employed, he shall pay
    one-half of such net profit to the United States, but not exceeding
    the operating-differential subsidy paid to him during the period,
    as partial or complete reimbursement of the operating subsidy;
    redesignated cl. (6) as (5); and substituted therein "essential
    services", "services", and "an economical" for "the vessel's
    services, routes, and lines", "cruises", and "the most economical"
    and struck out therefrom "but with due regard to the wage and
    manning scales and working conditions prescribed by the Commission
    as provided in subchapter III of this chapter" after "efficient
    manner,", respectively.
      Cls. (6), (7). Pub. L. 91-469, Sec. 20(10), (11), redesignated
    cl. (7) as (6) and substituted "an operator who received subsidy
    with respect to subsistence of officers and crews shall use as such
    subsistence items" for "the operator shall use", "1155" for
    "1155(a)", and "and an operator who receives subsidy with respect
    to repairs shall perform such repairs within any of the United
    States or the Commonwealth of Puerto Rico," and struck out "and
    equipment" before "outside the United States" and definition of
    "continental limits of the United States" as including States of
    Alaska and Hawaii, respectively. Former cl. (6) redesignated (5).
      1961 - Cl. (6). Pub. L. 87-45 inserted ", and any cruises
    authorized under section 1183 of this Appendix," after "services,
    routes, and lines".
      1960 - Pub. L. 86-624 inserted definition of "continental limits
    of the United States."
      1956 - Cl. (5). Act May 10, 1956, provided that termination of
    subsidy contract shall not end the 10-year recapture period if
    subsidized operations continue under a new, or consecutive,
    contract.
      1952 - Cl. (5). Act July 17, 1952, substituted "life expectancy
    of the subsidized vessel determined as provided in section 1177(b)
    of this Appendix" for "twenty-year life expectancy of the
    subsidized vessels".
      1938 - Cl. (5). Act June 23, 1938, substituted "ten-year period"
    for "five-year period" in three places, and inserted provisions to
    permit computation of net profits without regard to capital gains
    and losses.

                           AMENDMENT OF CONTRACT                       
      Section 2 of act May 10, 1956, provided that: "Each operating-
    differential subsidy contract in force on the date of enactment of
    this act [May 10, 1956] shall, if the subsidized contractor
    consents, be amended to conform to the provisions of section 606 of
    the Merchant Marine Act, 1936 [this section], as amended by section
    1 of this act."

-End-

-CITE-
    46 USC APPENDIX Sec. 1177                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER VI - VESSEL OPERATING ASSISTANCE PROGRAMS
    Part A - Operating-Differential Subsidy Program

-HEAD-
    Sec. 1177. Capital construction fund

-STATUTE-
    (a) Agreement rules; persons eligible; replacement, additional, or
      reconstructed vessels for prescribed trade and fishery
      operations; amount of deposits, annual limitation; conditions and
      requirements for deposits and withdrawals
      Any citizen of the United States owning or leasing one or more
    eligible vessels (as defined in subsection (k)(1) of this section)
    may enter into an agreement with the Secretary under, and as
    provided in, this section to establish a capital construction fund
    (hereinafter in this section referred to as the "fund") with
    respect to any or all of such vessels. Any agreement entered into
    under this section shall be for the purpose of providing
    replacement vessels, additional vessels, or reconstructed vessels,
    built in the United States and documented under the laws of the
    United States for operation in the United States foreign, Great
    Lakes, or noncontiguous domestic trade or in the fisheries of the
    United States and shall provide for the deposit in the fund of the
    amounts agreed upon as necessary or appropriate to provide for
    qualified withdrawals under subsection (f) of this section. The
    deposits in the fund, and all withdrawals from the fund, whether
    qualified or nonqualified, shall be subject to such conditions and
    requirements as the Secretary may by regulations prescribe or are
    set forth in such agreement; except that the Secretary may not
    require any person to deposit in the fund for any taxable year more
    than 50 percent of that portion of such person's taxable income for
    such year (computed in the manner provided in subsection (b)(1)(A)
    of this section) which is attributable to the operation of the
    agreement vessels.
    (b) Ceiling on deposits; lessees; "agreement vessel" defined
      (1) The amount deposited under subsection (a) of this section in
    the fund for any taxable year shall not exceed the sum of:
        (A) that portion of the taxable income of the owner or lessee
      for such year (computed as provided in chapter 1 of the Internal
      Revenue Code of 1986 [26 U.S.C. 1 et seq.] but without regard to
      the carryback of any net operating loss or net capital loss and
      without regard to this section) which is attributable to the
      operation of the agreement vessels in the foreign or domestic
      commerce of the United States or in the fisheries of the United
      States,
        (B) the amount allowable as a deduction under section 167 of
      the Internal Revenue Code of 1986 [26 U.S.C. 167] for such year
      with respect to the agreement vessels,
        (C) if the transaction is not taken into account for purposes
      of subparagraph (A), the net proceeds (as defined in joint
      regulations) from (i) the sale or other disposition of any
      agreement vessel, or (ii) insurance or indemnity attributable to
      any agreement vessel, and
        (D) the receipts from the investment or reinvestment of amounts
      held in such fund.

      (2) In the case of a lessee, the maximum amount which may be
    deposited with respect to an agreement vessel by reason of
    paragraph (1)(B) for any period shall be reduced by any amount
    which, under an agreement entered into under this section, the
    owner is required or permitted to deposit for such period with
    respect to such vessel by reason of paragraph (1)(B).
      (3) For purposes of paragraph (1), the term "agreement vessel"
    includes barges and containers which are part of the complement of
    such vessel and which are provided for in the agreement.
    (c) Investment requirements; depositories; fiduciary requirements;
      interest-bearing securities; stock: percentage for domestic
      issues, listing and registration, prudent acquisitions, value and
      percentage equilibrium, and treatment of preferred issues
      Amounts in any fund established under this section shall be kept
    in the depository or depositories specified in the agreement and
    shall be subject to such trustee and other fiduciary requirements
    as may be specified by the Secretary. They may be invested only in
    interest-bearing securities approved by the Secretary; except that,
    if the Secretary consents thereto, an agreed percentage (not in
    excess of 60 percent) of the assets of the fund may be invested in
    the stock of domestic corporations. Such stock must be currently
    fully listed and registered on an exchange registered with the
    Securities and Exchange Commission as a national securities
    exchange, and must be stock which would be acquired by prudent men
    of discretion and intelligence in such matters who are seeking a
    reasonable income and the preservation of their capital. If at any
    time the fair market value of the stock in the fund is more than
    the agreed percentage of the assets in the fund, any subsequent
    investment of amounts deposited in the fund, and any subsequent
    withdrawal from the fund, shall be made in such a way as to tend to
    restore the fund to a situation in which the fair market value of
    the stock does not exceed such agreed percentage. For purposes of
    this subsection, if the common stock of a corporation meets the
    requirements of this subsection and if the preferred stock of such
    corporation would meet such requirements but for the fact that it
    cannot be listed and registered as required because it is nonvoting
    stock, such preferred stock shall be treated as meeting the
    requirements of this subsection.
    (d) Nontaxability of deposits; eligible deposits
      (1) For purposes of the Internal Revenue Code of 1986 - 
        (A) taxable income (determined without regard to this section
      and section 7518 of such Code [26 U.S.C. 7518]) for the taxable
      year shall be reduced by an amount equal to the amount deposited
      for the taxable year out of amounts referred to in subsection
      (b)(1)(A) of this section,
        (B) gain from a transaction referred to in subsection (b)(1)(C)
      of this section, shall not be taken into account if an amount
      equal to the net proceeds (as defined in joint regulations) from
      such transaction is deposited in the fund,
        (C) the earnings (including gains and losses) from the
      investment and reinvestment of amounts held in the fund shall not
      be taken into account,
        (D) the earnings and profits of any corporation (within the
      meaning of section 316 of such Code [26 U.S.C. 316]) shall be
      determined without regard to this section and section 7518 of
      such Code [26 U.S.C. 7518], and
        (E) in applying the tax imposed by section 531 of such Code [26
      U.S.C. 531] (relating to the accumulated earnings tax), amounts
      while held in the fund shall not be taken into account.

      (2) Paragraph (1) shall apply with respect to any amount only if
    such amount is deposited in the fund pursuant to the agreement and
    not later than the time provided in joint regulations.
    (e) Accounts within fund: capital account, capital gain account,
      and ordinary income account; limitation on capital losses
      For purposes of this section - 
      (1) Within the fund established pursuant to this section three
    accounts shall be maintained:
        (A) the capital account,
        (B) the capital gain account, and
        (C) the ordinary income account.

      (2) The capital account shall consist of - 
        (A) amounts referred to in subsection (b)(1)(B) of this
      section,
        (B) amounts referred to in subsection (b)(1)(C) of this section
      other than that portion thereof which represents gain not taken
      into account by reason of subsection (d)(1)(B) of this section,
        (C) the percentage applicable under section 243(a)(1) of the
      Internal Revenue Code of 1986 [26 U.S.C. 243(a)(1)] of any
      dividend received by the fund with respect to which the person
      maintaining the fund would (but for subsection (d)(1)(C) of this
      section) be allowed a deduction under section 243 of the Internal
      Revenue Code of 1986 [26 U.S.C. 243], and
        (D) interest income exempt from taxation under section 103 of
      such Code [26 U.S.C. 103].

      (3) The capital gain account shall consist of - 
        (A) amounts representing capital gains on assets held for more
      than 6 months and referred to in subsection (b)(1)(C) or
      (b)(1)(D) of this section reduced by
        (B) amounts representing capital losses on assets held in the
      fund for more than 6 months.

      (4) The ordinary income account shall consist of - 
        (A) amounts referred to in subsection (b)(1)(A) of this
      section,
        (B)(i) amounts representing capital gains on assets held for 6
      months or less and referred to in subsection (b)(1)(C) or
      (b)(1)(D) of this section, reduced by - 
        (ii) amounts representing capital losses on assets held in the
      fund for 6 months or less,
        (C) interest (not including any tax-exempt interest referred to
      in paragraph (2)(D)) and other ordinary income (not including any
      dividend referred to in subparagraph (E)) received on assets held
      in the fund,
        (D) ordinary income from a transaction described in subsection
      (b)(1)(C) of this section, and
        (E) the portion of any dividend referred to in paragraph (2)(C)
      not taken into account under such paragraph.

      (5) Except on termination of a fund, capital losses referred to
    in paragraph (3)(B) or in paragraph (4)(B)(ii) shall be allowed
    only as an offset to gains referred to in paragraph (3)(A) or
    (4)(B)(i), respectively.
    (f) Purposes of qualified withdrawals; nonqualified withdrawal
      treatment for nonfulfillment of substantial obligations
      (1) A qualified withdrawal from the fund is one made in
    accordance with the terms of the agreement but only if it is for:
        (A) the acquisition, construction, or reconstruction of a
      qualified vessel,
        (B) the acquisition, construction, or reconstruction of barges
      and containers which are part of the complement of a qualified
      vessel, or
        (C) the payment of the principal on indebtedness incurred in
      connection with the acquisition, construction or reconstruction
      of a qualified vessel or a barge or container which is part of
      the complement of a qualified vessel.

    Except to the extent provided in regulations prescribed by the
    Secretary, subparagraph (B), and so much of subparagraph (C) as
    relates only to barges and containers, shall apply only with
    respect to barges and containers constructed in the United States.
      (2) Under joint regulations, if the Secretary determines that any
    substantial obligation under any agreement is not being fulfilled,
    he may, after notice and opportunity for hearing to the person
    maintaining the fund, treat the entire fund or any portion thereof
    as an amount withdrawn from the fund in a nonqualified withdrawal.
    (g) Tax treatment of qualified withdrawals; basis: reduction
      (1) Any qualified withdrawal from a fund shall be treated - 
        (A) first as made out of the capital account,
        (B) second as made out of the capital gain account, and
        (C) third as made out of the ordinary income account.

      (2) If any portion of a qualified withdrawal for a vessel, barge,
    or container is made out of the ordinary income account, the basis
    of such vessel, barge, or container shall be reduced by an amount
    equal to such portion.
      (3) If any portion of a qualified withdrawal for a vessel, barge,
    or container is made out of the capital gain account, the basis of
    such vessel, barge, or container shall be reduced by an amount
    equal to such portion.
      (4) If any portion of a qualified withdrawal to pay the principal
    on any indebtedness is made out of the ordinary income account or
    the capital gain account, then an amount equal to the aggregate
    reduction which would be required by paragraphs (2) and (3) if this
    were a qualified withdrawal for a purpose described in such
    paragraphs shall be applied,in the order provided in joint
    regulations, to reduce the basis of vessels, barges, and containers
    owned by the person maintaining the fund. Any amount of a
    withdrawal remaining after the application of the preceding
    sentence shall be treated as a nonqualified withdrawal.
      (5) If any property the basis of which was reduced under
    paragraph (2), (3), or (4) is disposed of, any gain realized on
    such disposition, to the extent it does not exceed the aggregate
    reduction in the basis of such property under such paragraphs,
    shall be treated as an amount referred to in subsection (h)(3)(A)
    of this section which was withdrawn on the date of such
    disposition. Subject to such conditions and requirements as may be
    provided in joint regulations, the preceding sentence shall not
    apply to a disposition where there is a redeposit in an amount
    determined under joint regulations which will, insofar as
    practicable, restore the fund to the position it was in before the
    withdrawal.
    (h) Tax treatment of nonqualified withdrawals; FIFO and LIFO bases;
      interest rate; amounts not withdrawn after 25 years; highest
      marginal rate of tax
      (1) Except as provided in subsection (i) of this section, any
    withdrawal from a fund which is not a qualified withdrawal shall be
    treated as a nonqualified withdrawal.
      (2) Any nonqualified withdrawal from a fund shall be treated - 
        (A) first as made out of the ordinary income account,
        (B) second as made out of the capital gain account, and
        (C) third as made out of the capital account.

    For purposes of this section, items withdrawn from any account
    shall be treated as withdrawn on a first-in-first-out basis; except
    that (i) any nonqualified withdrawal for research, development, and
    design expenses incident to new and advanced ship design, machinery
    and equipment, and (ii) any amount treated as a nonqualified
    withdrawal under the second sentence of subsection (g)(4) of this
    section, shall be treated as withdrawn on a last-in-first-out
    basis.
      (3) For purposes of the Internal Revenue Code of 1986 - 
        (A) any amount referred to in paragraph (2)(A) shall be
      included in income as an item of ordinary income for the taxable
      year in which the withdrawal is made,
        (B) any amount referred to in paragraph (2)(B) shall be
      included in income for the taxable year in which the withdrawal
      is made as an item of gain realized during such year from the
      disposition of an asset held for more than 6 months, and
        (C) for the period on or before the last date prescribed for
      payment of tax for the taxable year in which this withdrawal is
      made - 
          (i) no interest shall be payable under section 6601 of such
        Code [26 U.S.C. 6601] and no addition to the tax shall be
        payable under section 6651 of such Code [26 U.S.C. 6651],
          (ii) interest on the amount of the additional tax
        attributable to any item referred to in subparagraph (A) or (B)
        shall be paid at the applicable rate (as defined in paragraph
        (4)) from the last date prescribed for payment of the tax for
        the taxable year for which such item was deposited in the fund,
        and
          (iii) no interest shall be payable on amounts referred to in
        clauses (i) and (ii) of paragraph (2) or in the case of any
        nonqualified withdrawal arising from the application of the
        recapture provision of section 1176(5) of this Appendix as in
        effect on December 31, 1969.

      (4) For purposes of paragraph (3)(C)(ii), the applicable rate of
    interest for any nonqualified withdrawal - 
        (A) made in a taxable year beginning in 1970 or 1971 is 8
      percent, or
        (B) made in a taxable year beginning after 1971, shall be
      determined and published jointly by the Secretary of the Treasury
      and the Secretary and shall bear a relationship to 8 percent
      which the Secretaries determine under joint regulations to be
      comparable to the relationship which the money rates and
      investment yields for the calendar year immediately preceding the
      beginning of the taxable year bear to the money rates and
      investment yields for the calendar year 1970.

      (5) Amount not withdrawn from fund after 25 years from deposit
    taxed as nonqualified withdrawal. - 
        (A) In general. - The applicable percentage of any amount which
      remains in a capital construction fund at the close of the 26th,
      27th, 28th, 29th, or 30th taxable year following the taxable year
      for which such amount was deposited shall be treated as a
      nonqualified withdrawal in accordance with the following table:

-MISC1-
     If the amount remains in the fund at the                The
                                                              applicable 
      close of the -                                         percentage
                                                              is -       
         26th taxable year                            20 percent            
         27th taxable year                            40 percent            
         28th taxable year                            60 percent            
         29th taxable year                            80 percent            
         30th taxable year                            100 percent.          

        (B) Earnings treated as deposits. - The earnings of any capital
      construction fund for any taxable year (other than net gains)
      shall be treated for purposes of this paragraph as an amount
      deposited for such taxable year.
        (C) Amounts committed treated as withdrawn. - For purposes of
      subparagraph (A), an amount shall not be treated as remaining in
      a capital construction fund at the close of any taxable year to
      the extent there is a binding contract at the close of such year
      for a qualified withdrawal of such amount with respect to an
      identified item for which such withdrawal may be made.
        (D) Authority to treat excess funds as withdrawn. - If the
      Secretary determines that the balance in any capital construction
      fund exceeds the amount which is appropriate to meet the vessel
      construction program objectives of the person who established
      such fund, the amount of such excess shall be treated as a
      nonqualified withdrawal under subparagraph (A) unless such person
      develops appropriate program objectives within 3 years to
      dissipate such excess.
        (E) Amounts in fund on january 1, 1987. - For purposes of this
      paragraph, all amounts in a capital construction fund on January
      1, 1987, shall be treated as deposited in such fund on such date.

      (6) Nonqualified withdrawals taxed at highest marginal rate. - 
        (A) In general. - In the case of any taxable year for which
      there is a nonqualified withdrawal (including any amount so
      treated under paragraph (5)), the tax imposed by chapter 1 of the
      Internal Revenue Code of 1986 [26 U.S.C. 1 et seq.] shall be
      determined - 
          (i) by excluding such withdrawal from gross income, and
          (ii) by increasing the tax imposed by chapter 1 of such Code
        by the product of the amount of such withdrawal and the highest
        rate of tax specified in section 1 (section 11 in the case of a
        corporation) of such Code [26 U.S.C. 1, 11].

      With respect to the portion of any nonqualified withdrawal made
      out of the capital gain account during a taxable year to which
      section 1(h) or 1201(a) of such Code [26 U.S.C. 1(h), 1201(a)]
      applies, the rate of tax taken into account under the preceding
      sentence shall not exceed 15 percent (34 percent in the case of a
      corporation).
        (B) Tax benefit rule. - If any portion of a nonqualified
      withdrawal is properly attributable to deposits (other than
      earnings on deposits) made by the taxpayer in any taxable year
      which did not reduce the taxpayer's liability for tax under
      chapter 1 [26 U.S.C. 1 et seq.] for any taxable year preceding
      the taxable year in which such withdrawal occurs - 
          (i) such portion shall not be taken into account under
        subparagraph (A), and
          (ii) an amount equal to such portion shall be treated as
        allowed as a deduction under section 172 of such Code [26
        U.S.C. 172] for the taxable year in which such withdrawal
        occurs.

        (C) Coordination with deduction for net operating losses. - Any
      nonqualified withdrawal excluded from gross income under
      subparagraph (A) shall be excluded in determining taxable income
      under section 172(b)(2) of the Internal Revenue Code of 1986 [26
      U.S.C. 172(b)(2)].
    (i) Corporate reorganizations and partnership changes
      Under joint regulations - 
        (1) a transfer of a fund from one person to another person in a
      transaction to which section 381 of the Internal Revenue Code of
      1986 [26 U.S.C. 381] applies may be treated as if such
      transaction did not constitute a nonqualified withdrawal, and
        (2) a similar rule shall be applied in the case of a
      continuation of a partnership (within the meaning of subchapter K
      (!1) of such Code [26 U.S.C. 701 et seq.]).

    (j) Treatment of existing funds; relation of old to new fund
      (1) Any person who was maintaining a fund or funds (hereinafter
    in this subsection referred to as "old fund") under this section
    (as in effect before the enactment of this subsection) may elect to
    continue such old fund but - 
        (A) may not hold moneys in the old fund beyond the expiration
      date provided in the agreement under which such old fund is
      maintained (determined without regard to any extension or renewal
      entered into after April 14, 1970),
        (B) may not simultaneously maintain such old fund and a new
      fund established under this section, and
        (C) if he enters into an agreement under this section to
      establish a new fund, may agree to the extension of such
      agreement to some or all of the amounts in the old fund.

      (2) In the case of any extension of an agreement pursuant to
    paragraph (1)(C), each item in the old fund to be transferred shall
    be transferred in a nontaxable transaction to the appropriate
    account in the new fund established under this section. For
    purposes of subsection (h)(3)(C) of this section, the date of the
    deposit of any item so transferred shall be July 1, 1971, or the
    date of the deposit in the old fund, whichever is the later.
    (k) Definitions
      For purposes of this section - 
      (1) The term "eligible vessel" means any vessel - 
        (A) constructed in the United States and, if reconstructed,
      reconstructed in the United States,
        (B) documented under the laws of the United States, and
        (C) operated in the foreign or domestic commerce of the United
      States or in the fisheries of the United States.

    Any vessel which (i) was constructed outside of the United States
    but documented under the laws of the United States on April 15,
    1970, or (ii) constructed outside the United States for use in the
    United States foreign trade pursuant to a contract entered into
    before April 15, 1970, shall be treated as satisfying the
    requirements of subparagraph (A) of this paragraph and the
    requirements of subparagraph (A) of paragraph (2).
      (2) The term "qualified vessel" means any vessel - 
        (A) constructed in the United States and, if reconstructed,
      reconstructed in the United States,
        (B) documented under the laws of the United States, and
        (C) which the person maintaining the fund agrees with the
      Secretary will be operated in the United States foreign, Great
      Lakes, or noncontiguous domestic trade or in the fisheries of the
      United States.

      (3) The term "agreement vessel" means any eligible vessel or
    qualified vessel which is subject to an agreement entered into
    under this section.
      (4) The term "United States", when used in a geographical sense,
    means the continental United States including Alaska, Hawaii, and
    Puerto Rico.
      (5) The term "United States foreign trade" includes (but is not
    limited to) those areas in domestic trade in which a vessel built
    with construction-differential subsidy is permitted to operate
    under the first sentence of section 1156 of this Appendix.
      (6) The term "joint regulations" means regulations prescribed
    under subsection (l) of this section.
      (7) The term "vessel" includes cargo handling equipment which the
    Secretary determines is intended for use primarily on the vessel.
    The term "vessel" also includes an ocean-going towing vessel or an
    ocean-going barge or comparable towing vessel or barge operated on
    the Great Lakes.
      (8) The term "noncontiguous trade" means (i) trade between the
    contiguous forty-eight States on the one hand and Alaska, Hawaii,
    Puerto Rico and the insular territories and possessions of the
    United States on the other hand, and (ii) trade from any point in
    Alaska, Hawaii, Puerto Rico, and such territories and possessions
    to any other point in Alaska, Hawaii, Puerto Rico, and such
    territories and possessions.
      (9) The term "Secretary" means the Secretary of Commerce with
    respect to eligible or qualified vessels operated or to be operated
    in the fisheries of the United States, and the Secretary of
    Transportation with respect to all other vessels.
    (l) Records; reports; rules and regulations; termination of
      agreement upon changes in regulations with substantial effect on
      rights or obligations
      Each person maintaining a fund under this section shall keep such
    records and shall make such reports as the Secretary or the
    Secretary of the Treasury shall require. The Secretary of the
    Treasury and the Secretary shall jointly prescribe all rules and
    regulations, not inconsistent with the foregoing provisions of this
    section, as may be necessary or appropriate to the determination of
    tax liability under this section. If, after an agreement has been
    entered into under this section, a change is made either in the
    joint regulations or in the regulations prescribed by the Secretary
    under this section which could have a substantial effect on the
    rights or obligations of any person maintaining a fund under this
    section, such person may terminate such agreement.
    (m) Departmental reports and certification
      (1) In general
        For each calendar year, the Secretaries shall each provide the
      Secretary of the Treasury, within 120 days after the close of
      such calendar year, a written report with respect to those
      capital construction funds that are under their jurisdiction.
      (2) Contents of reports
        Each report shall set forth the name and taxpayer
      identification number of each person - 
          (A) establishing a capital construction fund during such
        calendar year;
          (B) maintaining a capital construction fund as of the last
        day of such calendar year;
          (C) terminating a capital construction fund during such
        calendar year;
          (D) making any withdrawal from or deposit into (and the
        amounts thereof) a capital construction fund during such
        calendar year; or
          (E) with respect to which a determination has been made
        during such calendar year that such person has failed to
        fulfill a substantial obligation under any capital construction
        fund agreement to which such person is a party.

-SOURCE-
    (June 29, 1936, ch. 858, title VI, Sec. 607, 49 Stat. 2005; June
    23, 1938, ch. 600, Secs. 23-28, 52 Stat. 960, 961; Aug. 4, 1939,
    ch. 417, Sec. 10, 53 Stat. 1185; July 17, 1952, ch. 939, Secs. 17-
    19, 66 Stat. 764, 765; Pub. L. 85-637, Aug. 14, 1958, 72 Stat.
    592; Pub. L. 86-518, Sec. 1, June 12, 1960, 74 Stat. 216; Pub. L.
    87-45, Sec. 6, May 27, 1961, 75 Stat. 91; Pub. L. 87-271, Sept. 21,
    1961, 75 Stat. 570; Pub. L. 91-469, Sec. 21(a), Oct. 21, 1970, 84
    Stat. 1026; Pub. L. 93-116, Oct. 1, 1973, 87 Stat. 421; Pub. L. 97-
    31, Sec. 12(97), Aug. 6, 1981, 95 Stat. 162; Pub. L. 99-514, Sec.
    2, title II, Sec. 261(d), (e), Oct. 22, 1986, 100 Stat. 2095, 2214;
    Pub. L. 100-647, title I, Sec. 1002(m)(2), Nov. 10, 1988, 102 Stat.
    3382; Pub. L. 101-508, title XI, Sec. 11101(d)(7)(B), Nov. 5, 1990,
    104 Stat. 1388-405; Pub. L. 105-34, title III, Sec. 311(c)(2), Aug.
    5, 1997, 111 Stat. 835; Pub. L. 108-27, title III, Sec.
    301(a)(2)(E), May 28, 2003, 117 Stat. 758.)

-STATAMEND-
                           AMENDMENT OF SECTION                       
      For termination of amendment by section 303 of Pub. L. 108-27,
    see Effective and Termination Dates of 2003 Amendment note below.

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Internal Revenue Code of 1986, referred to in subsecs. (d)(1)
    and (h)(3), is classified generally to Title 26, Internal Revenue
    Code.
      Section 103, referred to in subsec. (e)(2)(D), which related to
    interest on certain governmental obligations was amended generally
    by Pub. L. 99-514, title XIII, Sec. 1301(a), Oct. 22, 1986, 100
    Stat. 2602, and as so amended relates to interest on State and
    local bonds.

-MISC2-
                                AMENDMENTS                            
      2003 - Subsec. (h)(6)(A). Pub. L. 108-27, Secs. 301(a)(2)(E),
    303, temporarily substituted "15 percent" for "20 percent" in
    concluding provisions. See Effective and Termination Dates of 2003
    Amendment note below.
      1997 - Subsec. (h)(6)(A). Pub. L. 105-34 substituted "20 percent"
    for "28 percent" in concluding provisions.
      1990 - Subsec. (h)(6)(A). Pub. L. 101-508 substituted "section
    1(h)" for "section 1(j)".
      1988 - Subsec. (h)(6)(A). Pub. L. 100-647 substituted "section
    1(j)" for "section 1(i)".
      1986 - Subsec. (b)(1)(A), (B). Pub. L. 99-514, Sec. 2,
    substituted "Internal Revenue Code of 1986" for "Internal Revenue
    Code of 1954".
      Subsec. (d)(1). Pub. L. 99-514, Sec. 2, substituted "Internal
    Revenue Code of 1986" for "Internal Revenue Code of 1954".
      Subsec. (d)(1)(A), (D). Pub. L. 99-514, Sec. 261(e)(1), (2),
    inserted "and section 7518 of such Code".
      Subsec. (e)(2)(C). Pub. L. 99-514, Sec. 261(e)(3), substituted
    "the percentage applicable under section 243(a)(1) of the Internal
    Revenue Code of 1986" for "85 percent".
      Pub. L. 99-514, Sec. 2, substituted "section 243 of the Internal
    Revenue Code of 1986" for "section 243 of the Internal Revenue Code
    of 1954".
      Subsec. (e)(4)(E). Pub. L. 99-514, Sec. 261(e)(4), amended
    subpar. (E) generally. Prior to amendment, subpar. (E) read as
    follows: "15 percent of any dividend referred to in paragraph
    (2)(C)."
      Subsec. (g)(3). Pub. L. 99-514, Sec. 261(e)(5), amended par. (3)
    generally. Prior to amendment, par. (3) read as follows: "If any
    portion of a qualified withdrawal for a vessel, barge, or container
    is made out of the capital gain account, the basis of such vessel,
    barge, or container shall be reduced by an amount equal to - 
        "(A) Five-eighths of such portion, in the case of a corporation
      (other than an electing small business corporation, as defined in
      section 1371 of the Internal Revenue Code of 1954, or
        "(B) One-half of such portion, in the case of any other
      person."
      Subsec. (h)(3). Pub. L. 99-514, Sec. 2, substituted "Internal
    Revenue Code of 1986" for "Internal Revenue Code of 1954".
      Subsec. (h)(5), (6). Pub. L. 99-514, Sec. 261(e)(6), added pars.
    (5) and (6).
      Subsec. (i)(1). Pub. L. 99-514, Sec. 2, substituted "Internal
    Revenue Code of 1986" for "Internal Revenue Code of 1954".
      Subsec. (m). Pub. L. 99-514, Sec. 261(d), added subsec. (m).
      1981 - Subsecs. (a), (c), (f), (h)(4). Pub. L. 97-31, Sec.
    12(97)(A), substituted "Secretary" for "Secretary of Commerce"
    wherever appearing.
      Subsec. (k). Pub. L. 97-31, Sec. 12(97), substituted in pars.
    (2)(C) and (7) "Secretary" for "Secretary of Commerce" and added
    par. (9).
      Subsec. (l). Pub. L. 97-31, Sec. 12(97)(A), substituted
    "Secretary" for "Secretary of Commerce" wherever appearing.
      1973 - Subsec. (k)(8). Pub. L. 93-116 substituted "(ii) trade
    from any point in Alaska, Hawaii, Puerto Rico, and such territories
    and possessions to any other point in Alaska, Hawaii, Puerto Rico,
    and such territories and possessions." for "(ii) trade between
    Alaska, Hawaii, and Puerto Rico and such territories and
    possessions and (iii) trade between the islands of Hawaii."
      1970 - Pub. L. 91-469 revised tax deferred reserve fund
    provisions generally, extended tax deferral privilege to vessels
    operated in nonsubsidized foreign trade, noncontiguous domestic
    trade, Great Lakes trade, and in fisheries, built in the United
    States, and documented under her laws, and substituted a new
    statutory framework consisting of subsecs. (a) to (l) for
    determination of tax status of deposits into and withdrawals from
    the fund for former subsecs. (a) to (h) and providing as follows:
      Subsec. (a), a capital construction fund, agreement rules,
    persons eligible, replacement, additional, or reconstructed vessels
    for prescribed trade and fishery operations, amount of deposits,
    annual limitation, and conditions and requirements for deposits and
    withdrawals, subsec. (a) formerly permitting a 10 percent
    distribution of net profits;
      Subsec. (b), ceiling on deposits, deposits of lessees, and
    definition of "agreement vessel", subsec. (b) formerly providing
    for a capital reserve fund, deposits, and allowable disbursements;
      Subsec. (c), investment requirements, depositories, fiduciary
    requirements, investment in interest-bearing certificates (formerly
    provided in former subsec. (d)(2) of this section), stock
    investments, including common stock treatment of preferred issues,
    percentage for domestic issues, listing and registration, prudent
    man acquisitions (provisions formerly covered in former subsec.
    (d)(3)(A) of this section), and value and percentage equilibrium,
    subsec. (c) formerly providing for creation of a special reserve
    fund, deposits, and allowable disbursements;
      Subsec. (d), nontaxability of deposits and eligible deposits,
    subsec. (d) formerly providing rules and regulations for
    administration of reserve funds and investment of funds, now
    covered in subsec. (c) of this section;
      Subsec. (e), capital account, capital gain account, and ordinary
    income account within the capital construction fund and limitation
    on losses, subsec. (e) formerly providing for withdrawals from
    capital reserve fund to meet needs due to operating losses;
      Subsec. (f), purposes of qualified withdrawals and nonqualified
    withdrawal treatment for nonfulfillment of substantial obligations,
    subsec. (f) formerly providing for title to reserve funds on
    termination of contract;
      Subsec. (g), tax treatment of qualified withdrawals and reduction
    of basis, subsec. (g) formerly providing for increase and transfer
    of reserve funds and interest on overpayment of taxes;
      Subsec. (h), tax treatment of nonqualified withdrawals, FIFO and
    LIFO bases, and interest rate, subsec. (h) formerly providing for
    exemption of reserve funds from taxation, in effect a tax deferral;
      Subsec. (i), corporate reorganizations and partnership changes;
      Subsec. (j), treatment of existing funds and relation of old to
    new funds;
      Subsec. (k), definitions; and
      Subsec. (l), records, reports, rules, and regulations, and
    termination of agreement upon changes in regulations with
    substantial effect on rights or obligations.
      1961 - Subsec. (b). Pub. L. 87-271 authorized the contractor,
    upon consent of the Secretary of Commerce, to pay amounts from the
    capital reserve fund for research, development, and design expenses
    for new and advanced ship design machinery and equipment, purchase
    of cargo containers delivered after June 30, 1959, payment of
    principal on indebtedness incurred for containers, and for
    reimbursing the contractor's general funds for expenditures for
    such purchases or payments, and required such cargo containers, to
    the extent paid for out of the capital reserve fund, to be treated
    as vessels for purpose of deposits and withdrawals from the fund,
    except that depreciation thereon shall be based on life expectancy
    used for such containers in determination of "net earnings" in
    subsec. (d)(1) of this section.
      Pub. L. 87-45 inserted "and on cruises, if any, authorized under
    section 1183 of this Appendix" after "route or service approved by
    the Secretary" in second par.
      1960 - Subsec. (b). Pub. L. 86-518 substituted "twenty-five-year
    life expectancy" for "twenty-year life expectancy".
      1958 - Subsec. (d). Pub. L. 85-637 designated first and second
    paragraphs as subdivisions (1) and (2), and added subdivision (3).
      1952 - Subsec. (b). Act July 17, 1952, Sec. 17, permitted
    recomputation of life-expectancy of a reconstructed or
    reconditioned vessel in use under an operating-differential subsidy
    contract, and provided for recomputation of depreciation changes.
      Subsec. (d). Act July 17, 1952, Sec. 18, substituted "as provided
    for in section 1177(b) of this Appendix" after "life of the vessel"
    for "being twenty years".
      Subsec. (g). Act July 17, 1952, Sec. 19, barred payment of
    interest by Government on overpayment of taxes resulting from
    voluntary deposits of earnings.
      1939 - Subsec. (c)(3). Act Aug. 4, 1939, permitted payment from
    the capital reserve fund, and authorized payment from other assets
    of the contractor if assets have not been repaid to the reserve
    funds, or if prepayments of amounts not due before one year after
    the date of termination of the contract have been made from the
    capital reserve funds.
      1938 - Subsec. (b). Act June 23, 1938, Secs. 23, 24, substituted
    "insurance and indemnities" for "insurance indemnities" in first
    par., and inserted provisions requiring deposit of proceeds of any
    sale or other disposition of a vessel in the capital reserve funds,
    and to permit the contractor to pay from the fund any sums owing
    but not yet due on notes secured by mortgages on subsidized
    vessels.
      Subsec. (c). Act June 23, 1938, Sec. 25, substituted "If the
    profits, without regard to capital gains and capital losses, earned
    by the business of the subsidized vessels and services incident
    thereto exceed 10 per centum per annum and exceed the percentage of
    profits deposited in the capital reserve fund, as provided in
    subsection (b) of this section, the contractor shall deposit
    annually such excess profits in this reserve fund" for "In this
    reserve fund, the contractor shall deposit annually the profits
    earned by the business of the subsidized vessels and services
    incident thereto in excess of 10 per centum per annum and in excess
    of the percentage of profits deposited in the capital reserve fund,
    as provided in subsection (b) of this section", in second par.
      Subsec. (c)(2). Act June 23, 1938, Sec. 26, substituted "will be
    made up" for "will not be made up".
      Subsecs. (f), (g). Act June 23, 1938, Sec. 27, added subsecs. (f)
    and (g). Former subsec. (f) redesignated (h).
      Subsec. (h). Act June 23, 1938, Sec. 28, redesignated former
    subsec. (f) as subsec. (h) and made earnings withdrawn from the
    special reserve fund taxable as if earned during the year of
    withdrawal from the fund.

             EFFECTIVE AND TERMINATION DATES OF 2003 AMENDMENT         
      Amendment by Pub. L. 108-27 applicable to taxable years ending on
    or after May 6, 2003, see section 301(d) of Pub. L. 108-27, set out
    as a note under section 1 of Title 26, Internal Revenue Code.
      Amendment by Pub. L. 108-27 inapplicable to taxable years
    beginning after Dec. 31, 2008, and the Internal Revenue Code of
    1986 to be applied and administered to such years as if such
    amendment had never been enacted, see section 303 of Pub. L. 108-
    27, set out as a note under section 1 of Title 26, Internal
    Revenue Code.

                     EFFECTIVE DATE OF 1997 AMENDMENT                 
      Amendment by Pub. L. 105-34 applicable to taxable years ending
    after May 6, 1997, see section 311(d) of Pub. L. 105-34, set out as
    a note under section 1 of Title 26, Internal Revenue Code.

                     EFFECTIVE DATE OF 1990 AMENDMENT                 
      Amendment by Pub. L. 101-508 applicable to taxable years
    beginning after Dec. 31, 1990, see section 11101(e) of Pub. L. 101-
    508, set out as a note under section 1 of Title 26, Internal
    Revenue Code.

                     EFFECTIVE DATE OF 1988 AMENDMENT                 
      Amendment by Pub. L. 100-647 effective, except as otherwise
    provided, as if included in the provision of the Tax Reform Act of
    1986, Pub. L. 99-514, to which such amendment relates, see section
    1019(a) of Pub. L. 100-647, set out as a note under section 1 of
    Title 26, Internal Revenue Code.

                     EFFECTIVE DATE OF 1986 AMENDMENT                 
      Amendment by section 261(d), (e) of Pub. L. 99-514 applicable to
    taxable years beginning after Dec. 31, 1986, see section 261(g) of
    Pub. L. 99-514, set out as an Effective Date note under section
    7518 of Title 26, Internal Revenue Code.

                     EFFECTIVE DATE OF 1970 AMENDMENT                 
      Section 21(b) of Pub. L. 91-469 provided that: "The amendment
    made by subsection (a) [amending this section] shall apply to
    taxable years beginning after December 31, 1969."

                     EFFECTIVE DATE OF 1960 AMENDMENT                 
      Amendment by Pub. L. 86-518 applicable only to vessels delivered
    by the shipbuilder on or after Jan. 1, 1946, and with respect to
    such vessels shall become effective on Jan. 1, 1960, and with
    respect to vessels delivered by the shipbuilder before Jan. 1,
    1946, the provisions of this chapter existing immediately before
    June 12, 1960, shall continue in effect, see section 8(a) of Pub.
    L. 86-518, set out as a note under section 1125 of this Appendix.

                MERCHANT MARINE CAPITAL CONSTRUCTION FUNDS            
      For coordination of application of Internal Revenue Code of 1986
    with capital construction program under this chapter, see section
    261(a) of Pub. L. 99-514, set out as a note under section 7518 of
    Title 26, Internal Revenue Code.

                    DEPOSITS INTO CAPITAL RESERVE FUND                
      Pub. L. 92-507, Sec. 6, Oct. 19, 1972, 86 Stat. 917, provided
    that: "Nothing in this Act [enacting this note and amending
    subchapter XI of this chapter] shall limit or affect the right of
    an obligor who maintains a capital reserve fund under section 607
    of the Merchant Marine Act, 1936 [this section] to make deposits of
    the proceeds of guaranteed obligations into such capital reserve
    fund as provided in subparagraph (c) of condition (6) of section
    1107 of the Merchant Marine Act, 1936 [subparagraph (c) of
    condition (6) of section 1276a of former Title 46, Shipping], as in
    effect prior to the effective date of this Act [Oct. 9, 1972]."

      RATE OF DEPRECIATION FOR VESSELS DELIVERED BY SHIPBUILDER ON OR
             AFTER JANUARY 1, 1946, AND BEFORE JANUARY 1, 1960
      For provisions relating to computation of depreciation with
    respect to vessels delivered by the shipbuilder on or after Jan. 1,
    1946, and before Jan. 1, 1960, see section 8(b) of Pub. L. 86-518,
    set out as a note under section 1125 of this Appendix.

    REVISION OF CONTRACTS, COMMITMENTS TO INSURE MORTGAGES, MORTGAGES,
      AND MORTGAGE INSURANCE CONTRACTS ENTERED INTO PRIOR TO JUNE 12,
                                   1960
      For provisions authorizing revision, see section 8(c) of Pub. L.
    86-518, set out as a note under section 1125 of this Appendix.

      COMMERCIAL EXPECTANCY OR PERIOD OF DEPRECIATION OF TANKERS AND
                        OTHER LIQUID BULK CARRIERS
      Nothing in any amendment made by Pub. L. 86-518 to operate or be
    interpreted to change from 20 to 25 years the provisions of this
    chapter relating to the commercial expectancy or period of
    depreciation of any tanker or other liquid bulk carrier, see
    section 9 of Pub. L. 86-518, set out as a note under section 1125
    of this Appendix.

-FOOTNOTE-
    (!1) So in original. Probably should be followed by "of chapter 1".

-End-

-CITE-
    46 USC APPENDIX Sec. 1177-1                                 01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER VI - VESSEL OPERATING ASSISTANCE PROGRAMS
    Part A - Operating-Differential Subsidy Program

-HEAD-
    Sec. 1177-1. Small fishing vessel construction reserves

-STATUTE-
      In addition to any other vessel which may be deemed an "eligible
    vessel" and a "qualified vessel" under section 1177 of this
    Appendix, a commercial fishing vessel under five net tons but not
    under two net tons - 
        (1) which is constructed in the United States and, if
      reconstructed, is reconstructed in the United States;
        (2) which is owned by a citizen of the United States;
        (3) which has a home port in the United States; and
        (4) which is operated in the commercial fisheries of the United
      States,

    shall be considered to be an "eligible vessel" and a "qualified
    vessel" for the purposes of such section 1177 of this Appendix.

-SOURCE-
    (Pub. L. 94-455, title VIII, Sec. 807, Oct. 4, 1976, 90 Stat.
    1606.)

-COD-
                               CODIFICATION                           
      Section was not enacted as part of the Merchant Marine Act, 1936,
    which comprises this chapter.

-End-

-CITE-
    46 USC APPENDIX Sec. 1177a                                  01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER VI - VESSEL OPERATING ASSISTANCE PROGRAMS
    Part A - Operating-Differential Subsidy Program

-HEAD-
    Sec. 1177a. Deposits in special reserve fund; excusal; tax
      treatment

-STATUTE-
      On and after June 13, 1957, to the extent that the operating-
    differential subsidy accrual (computed on the basis of parity) is
    represented on the operator's books by a contingent accounts
    receivable item against the United States as a partial or complete
    offset to the recapture accrual, the operator (1) shall be excused
    from making deposits in the special reserve fund, and (2) as to the
    amount of such earnings the deposit of which is so excused shall be
    entitled to the same tax treatment as though it had been deposited
    in said special reserve fund. To the extent that any amount paid to
    the operator by the United States reduces the balance in the
    operator's contingent receivable account against the United States,
    such amount shall forthwith be deposited in the special reserve
    fund of the operator.

-SOURCE-
    (Pub. L. 85-52, title I, Sec. 101, June 13, 1957, 71 Stat. 73.)

-COD-
                               CODIFICATION                           
      Section was not enacted as part of the Merchant Marine Act, 1936,
    which comprises this chapter.

-End-

-CITE-
    46 USC APPENDIX Sec. 1178                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER VI - VESSEL OPERATING ASSISTANCE PROGRAMS
    Part A - Operating-Differential Subsidy Program

-HEAD-
    Sec. 1178. Sale or assignment of contract; consent of Secretary;
      purchaser subject to terms of contract; rescinding contract on
      transfer without consent

-STATUTE-
      No contract executed under this subchapter or any interest
    therein shall be sold, assigned, or transferred, either directly or
    indirectly, or through any reorganization, merger, or
    consolidation, nor shall any agreement or arrangement be made by
    the holder whereby the maintenance, management, or operation of the
    service, route, line, vessel, or vessels is to be performed by any
    other person, without the written consent of the Secretary of
    Transportation. If he consents to such agreement or arrangement,
    the agreement or arrangement shall make provision whereby the
    person undertaking such maintenance, management, or operation
    agrees to be bound by all of the provisions of the contract and of
    this chapter applicable thereto, and the rules and regulations
    prescribed pursuant to this chapter. If the holder of any such
    contract shall voluntarily sell such contract or any interest
    therein, or make such assignment, transfer, agreement, or
    arrangement whereby the maintenance, management, or operation of
    the service, route, line, vessel, or vessels is to be performed by
    any other person, without the consent of the Secretary of
    Transportation, or if the operation of the service, route, line, or
    vessel, shall pass out of the direct control of the holder of such
    contract by reason of any voluntary or involuntary receivership or
    bankruptcy proceedings, the Secretary of Transportation shall have
    the right to modify or rescind such contract, without further
    liability thereon by the United States, and is vested with
    exclusive jurisdiction to determine the purposes for which any
    payments made by him under such contract shall be expended.

-SOURCE-
    (June 29, 1936, ch. 858, title VI, Sec. 608, 49 Stat. 2007; Pub. L.
    97-31, Sec. 12(98), Aug. 6, 1981, 95 Stat. 162.)

-MISC1-
                                AMENDMENTS                            
      1981 - Pub. L. 97-31 substituted "Secretary of Transportation"
    for "Commission" in three places and "he" and "him" for "it". For
    prior transfers of functions of the Commission, meaning the United
    States Maritime Commission, see Transfer of Functions note below.

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      For transfer of functions of United States Maritime Commission,
    see Reorg. Plan No. 6 of 1949, Reorg. Plan No. 21 of 1950, and
    Reorg. Plan No. 7 of 1961, set out under section 1111 of this
    Appendix.

-End-

-CITE-
    46 USC APPENDIX Sec. 1179                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER VI - VESSEL OPERATING ASSISTANCE PROGRAMS
    Part A - Operating-Differential Subsidy Program

-HEAD-
    Sec. 1179. Withholding payment to defaulting contractor

-STATUTE-
      The Secretary of Transportation shall withhold the payment of
    operating-differential subsidy while any contractor therefor is in
    default in any payments due on account of construction-loan, ship-
    sales mortgage notes, or any other obligation due the United
    States, and shall apply the amount so withheld to the satisfaction
    of such debt.

-SOURCE-
    (June 29, 1936, ch. 858, title VI, Sec. 609, 49 Stat. 2007; June
    23, 1938, ch. 600, Sec. 29, 52 Stat. 961; Pub. L. 97-31, Sec.
    12(99), Aug. 6, 1981, 95 Stat. 162.)

-MISC1-
                                AMENDMENTS                            
      1981 - Pub. L. 97-31 substituted "Secretary of Transportation"
    for "Commission". For prior transfers of functions of the
    Commission, meaning the United States Maritime Commission, see
    Transfer of Functions note below.
      1938 - Act June 23, 1938, repealed subsec. (b) which related to
    cancellation or modification of a contract where a contractor filed
    bankruptcy or was in default of payments.

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      For transfer of functions of United States Maritime Commission,
    see Reorg. Plan No. 6 of 1949, Reorg. Plan No. 21 of 1950, and
    Reorg. Plan No. 7 of 1961, set out under section 1111 of this
    Appendix.

-End-

-CITE-
    46 USC APPENDIX Sec. 1180                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER VI - VESSEL OPERATING ASSISTANCE PROGRAMS
    Part A - Operating-Differential Subsidy Program

-HEAD-
    Sec. 1180. Vessels eligible to subsidy

-STATUTE-
      An operating-differential subsidy shall not be paid under
    authority of this subchapter on account of the operation of any
    vessel which does not meet the following requirements: (1) The
    vessel shall be of steel or other acceptable metal, shall be
    propelled by steam or motor, shall be as nearly fireproof as
    practicable, shall be built in a domestic yard or shall have been
    documented under the laws of the United States not later than
    February 1, 1928, or actually ordered and under construction for
    the account of citizens of the United States prior to such date,
    and shall be documented under the laws of the United States, during
    the entire life of the subsidy contract; and (2) if the vessel
    shall be constructed after June 29, 1936 it shall be either a
    vessel constructed according to plans and specifications approved
    by the Secretary of Transportation and the Secretary of the Navy,
    with particular reference to economical conversion into an
    auxiliary naval vessel, or a vessel approved by the Secretary of
    Transportation and the Navy Department as otherwise useful to the
    United States in time of national emergency.

-SOURCE-
    (June 29, 1936, ch. 858, title VI, Sec. 610, 49 Stat. 2007; Pub. L.
    97-31, Sec. 12(99), Aug. 6, 1981, 95 Stat. 162.)

-MISC1-
                                AMENDMENTS                            
      1981 - Pub. L. 97-31 substituted "Secretary of Transportation"
    for "Commission". For prior transfers of functions of the
    Commission, meaning the United States Maritime Commission, see
    Transfer of Functions note below.

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      For transfer of functions of United States Maritime Commission,
    see Reorg. Plan No. 6 of 1949, Reorg. Plan No. 21 of 1950, and
    Reorg. Plan No. 7 of 1961, set out under section 1111 of this
    Appendix.

-End-

-CITE-
    46 USC APPENDIX Sec. 1181                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER VI - VESSEL OPERATING ASSISTANCE PROGRAMS
    Part A - Operating-Differential Subsidy Program

-HEAD-
    Sec. 1181. Transfer of vessels to foreign registry on default of
      United States

-STATUTE-
    (a) Application; hearing; grant or denial
      The contractor, upon compliance with the provisions of this
    section, may transfer to foreign registry the vessels covered by
    any operating-differential subsidy contract held by him, in the
    event that the United States defaults upon such contract or cancels
    it without just cause. Any contractor desiring to transfer any such
    vessel to foreign registry upon such default or cancelation shall
    file an application in writing with the Secretary of Transportation
    setting forth its contentions with respect to the lack of just
    cause or lawful grounds for such default or cancelation. The
    Secretary of Transportation shall afford the contractor an
    opportunity for a hearing within twenty days after such contractor
    files written application therefor, and after the testimony, if
    any, in such hearing has been reduced to writing and filed with the
    Secretary of Transportation, he shall, within a reasonable time,
    grant or deny the application by order.
    (b) Appeal from denial of application
      If any such application is denied, the contractor may obtain a
    review of the order of denial in the United States Court of Appeals
    for the District of Columbia, by filing in such court, within
    twenty days after the entry of such order, a written petition
    praying that the order of the Secretary of Transportation be set
    aside. A copy of such petition shall be forthwith transmitted by
    the clerk of the court to the Secretary of Transportation or any
    officer designated by him for that purpose, and thereupon the
    Secretary of Transportation shall file in the court the record upon
    which the order complained of was entered, as provided in section
    2112 of title 28. Upon the filing of such petition such court shall
    have exclusive jurisdiction to determine whether such cancelation
    or default was without just cause, and to affirm or set aside such
    order. The judgment and decree of the court affirming or setting
    aside any such order of the Secretary of Transportation shall be
    final.
    (c) Effectiveness of transfer
      No transfer of vessels to foreign registry under this section
    shall become effective until any indebtedness to the Government or
    to any citizen of the United States, secured by such vessels, has
    been paid or discharged, and until after the expiration of ninety
    days from the date of final determination of the application or the
    appeal, if any. Within such ninety-day period the Secretary of
    Transportation may (1) with the consent of the contractor purchase
    the vessels at cost to the contractor plus cost of capital
    improvements thereon, less 4 per centum annual depreciation upon
    such vessel, and the actual depreciated costs of capital
    improvements thereon, or (2) reinstate the contract and adjust or
    settle the default found by the Secretary of Transportation or the
    court to exist.

-SOURCE-
    (June 29, 1936, ch. 858, title VI, Sec. 611, as added June 23,
    1938, ch. 600, Sec. 30, 52 Stat. 961; amended Pub. L. 85-791, Sec.
    17, Aug. 28, 1958, 72 Stat. 947; Pub. L. 86-518, Sec. 4, June 12,
    1960, 74 Stat. 216; Pub. L. 97-31, Sec. 12(100), Aug. 6, 1981, 95
    Stat. 162.)

-MISC1-
                                AMENDMENTS                            
      1981 - Subsec. (a). Pub. L. 97-31, Sec. 12(100)(A), (B),
    substituted "Secretary of Transportation" for "Commission" in three
    places and "he" for "it". For prior transfers of functions of the
    Commission, meaning the United States Maritime Commission, see
    Transfer of Functions note below.
      Subsec. (b). Pub. L. 97-31, Sec. 12(100)(A), (C), substituted
    "Secretary of Transportation" for "Commission" in three places and
    "the Secretary of Transportation or any other officer designated by
    him for that purpose" for "any member of the Commission, or any
    officer thereof designated by the Commission for that purpose". For
    prior transfers of functions of the Commission, meaning the United
    States Maritime Commission, see Transfer of Functions note below.
      Subsec. (c). Pub. L. 97-31, Sec. 12(100)(A), substituted
    "Secretary of Transportation" for "Commission". For prior transfers
    of functions of the Commission, meaning the United States Maritime
    Commission, see Transfer of Functions note below.
      1960 - Subsec. (c). Pub. L. 86-518 substituted "4 per centum" for
    "5 per centum".
      1958 - Subsec. (b). Pub. L. 85-791, in second sentence,
    substituted "transmitted by the clerk of the court to" for "served
    upon", struck out "upon" before "any officer", substituted "file in
    the court" for "certify and file in the court a transcript of", and
    inserted "as provided in section 2112 of title 28", and which, in
    third sentence, substituted "petition" for "transcript".

                     EFFECTIVE DATE OF 1960 AMENDMENT                 
      Amendment by Pub. L. 86-518 applicable only to vessels delivered
    by the shipbuilder on or after Jan. 1, 1946, and with respect to
    such vessels shall become effective on Jan. 1, 1960, and with
    respect to vessels delivered by the shipbuilder before Jan. 1,
    1946, the provisions of this chapter existing immediately before
    June 12, 1960, shall continue in effect, see section 8(a) of Pub.
    L. 86-518, set out as a note under section 1125 of this Appendix.

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      For transfer of functions of United States Maritime Commission,
    see Reorg. Plan No. 6 of 1949, Reorg. Plan No. 21 of 1950, and
    Reorg. Plan No. 7 of 1961, set out under section 1111 of this
    Appendix.

-MISC2-
      RATE OF DEPRECIATION FOR VESSELS DELIVERED BY SHIPBUILDER ON OR
             AFTER JANUARY 1, 1946, AND BEFORE JANUARY 1, 1960
      For provisions relating to computation of depreciation with
    respect to vessels delivered by the shipbuilder on or after Jan. 1,
    1946, and before Jan. 1, 1960, see section 8(b) of Pub. L. 86-518,
    set out as a note under section 1125 of this Appendix.

    REVISION OF CONTRACTS, COMMITMENTS TO INSURE MORTGAGES, MORTGAGES,
      AND MORTGAGE INSURANCE CONTRACTS ENTERED INTO PRIOR TO JUNE 12,
                                   1960
      For provisions authorizing revision, see section 8(c) of Pub. L.
    86-518, set out as a note under section 1125 of this Appendix.

      COMMERCIAL EXPECTANCY OR PERIOD OF DEPRECIATION OF TANKERS AND
                        OTHER LIQUID BULK CARRIERS
      Nothing in any amendment made by Pub. L. 86-518 to operate or be
    interpreted to change from 20 to 25 years the provisions of this
    chapter relating to the commercial expectancy or period of
    depreciation of any tanker or other liquid bulk carrier, see
    section 9 of Pub. L. 86-518, set out as a note under section 1125
    of this Appendix.

-End-

-CITE-
    46 USC APPENDIX Sec. 1183                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER VI - VESSEL OPERATING ASSISTANCE PROGRAMS
    Part A - Operating-Differential Subsidy Program

-HEAD-
    Sec. 1183. Off-season cruises by passenger vessels

-STATUTE-
    (a) "Passenger vessel" defined
      In this section, "passenger vessel" means a vessel which (1) is
    of not less than ten thousand gross tons, and (2) has
    accommodations for not less than one hundred passengers.
    (b) Authorization for payment of subsidy
      If the Secretary of Transportation finds that the operation of
    any passenger vessel with respect to which a contract for the
    payment of an operating-differential subsidy has been entered into
    under section 1173 of this Appendix effective before January 2,
    1960, is not required for all of each year, in order to furnish
    adequate service on the service, route, or line covered by such
    contract, he may amend such contract to agree to pay an operating-
    differential subsidy for operation of the vessel (1) on such
    service, route, or line for some part or no part of each year, and
    (2) on cruises for all or part of each year if such specific cruise
    is approved by the Secretary of Transportation under subsection (e)
    of this section: Provided, however, That no such vessel may cruise
    for more than seven months of each year to ports which are
    regularly served by another United States-flag passenger vessel
    pursuant to an operating-differential subsidy contract.
    (c) Authorization for payment of subsidy to passenger vessels
      providing domestic service
      The Secretary of Transportation may authorize passenger vessels
    under operating-differential subsidy contracts to provide domestic
    service between specified ports while the vessels are on voyages in
    an essential service in the foreign commerce of the United States
    without reduction of operating-differential subsidy and the partial
    payback of construction-differential subsidy for operating in the
    domestic trades, if he finds that such domestic service will not
    result in a substantial deviation from the service, route, or line
    for which operating-differential subsidy is paid and will not
    adversely affect service on such service, route, or line.
    (d) Conditions for cruises or domestic service while on voyages in
      an essential service in foreign commerce
      When a vessel is being operated on cruises or has been authorized
    under this section to provide domestic passenger services while on
    voyages in an essential service in foreign commerce of the United
    States - 
        (1) except as provided in subdivision (4) of this subsection,
      it shall carry no mail unless required by law, or cargo except
      passengers' luggage, except between those ports between which it
      may carry mail and cargo on its regular service assigned by
      contract;
        (2) it may not carry one-way passengers between those ports
      served by another United States carrier on its regular service
      assigned by contract, without the consent of such carrier, except
      between those ports between which it may carry one-way passengers
      on its own regular service assigned by contract;
        (3) it shall stop at other domestic ports only for the same
      time and the same purpose as is permitted with respect to a
      foreign-flag vessel which is carrying passengers who embarked at
      a domestic port, except that a cruise may end at a different port
      or coast from that where it began and may embark or disembark
      passengers at other domestic ports, either when not involving
      transportation in the domestic offshore trade in competition with
      a United States-flag passenger vessel offering berth service
      therein, or, if involving such transportation, with the consent
      of such carrier: Provided, however, That nothing herein shall be
      construed to repeal or modify section 1223(a) of this Appendix.
        (4) Any other provisions of this chapter or of the Shipping
      Act, 1916 [46 App. U.S.C. 801 et seq.], to the contrary
      notwithstanding, with the approval of the Secretary of
      Transportation, it may carry cargo and mail between ports to the
      extent such carriage is not in direct competition with a carrier
      offering United States-flag berth service between those ports,
      or, if such carriage is in direct competition with one or more
      carriers offering United States-flag berth service between such
      ports, with the consent of the next scheduled United States-flag
      carrier, which consent shall not be unreasonably withheld in the
      judgment of the Maritime Administrator.

    Section 1175(c) of this Appendix shall not apply to cruises
    authorized under this section. Notwithstanding the applicable
    provisions of sections 1175(a) and 1156 of this Appendix requiring
    the reduction of operating differential subsidy and the partial
    payback of construction differential subsidy for operating in the
    domestic trades, such reduction of operating subsidy and partial
    payback of construction subsidy under sections 1175(a) and 1156,
    respectively, of this Appendix, shall not apply to cruises or
    domestic services authorized under this section.
    (e) Application for approval of cruise; notice to other American
      flag operators
      Upon the application of any operator for approval of a specific
    cruise, the Secretary of Transportation, after notice to all other
    American flag operators who may be affected and after affording all
    such operators an opportunity to submit written data, views or
    arguments, with or without opportunity to present the same orally
    in any manner, and after consideration of all relevant matter
    presented, shall approve the proposed cruise, if he determines that
    the proposed cruise will not substantially adversely affect an
    existing operator's service performed with passenger vessels of
    United States registry. Such approval shall not be given more than
    two years in advance of the beginning of the cruise.

-SOURCE-
    (June 29, 1936, ch. 858, title VI, Sec. 613, as added Pub. L. 87-
    45, Sec. 1, May 27, 1961, 75 Stat. 89; amended Pub. L. 90-358,
    Secs. 1, 2, June 22, 1968, 82 Stat. 248; Pub. L. 91-250, May 14,
    1970, 84 Stat. 215; Pub. L. 92-323, June 30, 1972, 86 Stat. 389;
    Pub. L. 97-31, Sec. 12(102), Aug. 6, 1981, 95 Stat. 162.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Shipping Act, 1916, referred to in subsec. (d)(4), is act
    Sept. 7, 1916, ch. 451, 39 Stat. 728, as amended, which is
    classified generally to chapter 23 (Sec. 801 et seq.) of this
    Appendix. For complete classification of this Act to the Code, see
    section 842 of this Appendix and Tables.

-MISC1-
                                AMENDMENTS                            
      1981 - Subsec. (b). Pub. L. 97-31, Sec. 12(102)(A), substituted
    "Secretary of Transportation" for "Secretary of Commerce" wherever
    appearing.
      Subsec. (c). Pub. L. 97-31, Sec. 12(102)(A), (B), substituted
    "Secretary of Transportation" for "Secretary of Commerce" and "he"
    for "it".
      Subsec. (d)(4). Pub. L. 97-31, Sec. 12(102)(A), substituted
    "Secretary of Transportation" for "Secretary of Commerce".
      Subsec. (e). Pub. L. 97-31, Sec. 12(102)(B), (C), substituted
    "Secretary of Transportation" for "Board" and "he" for "it". For
    prior transfers of functions of the Board, meaning the Federal
    Maritime Board, see Transfer of Functions note set out below.
      1972 - Subsec. (b). Pub. L. 92-323, Sec. 1(a), substituted
    provisions authorizing the Secretary of Commerce to permit
    passenger vehicles with respect to which an operating differential
    subsidy contract was entered into prior to January 2, 1960, to
    cruise for the whole year, for provisions permitting such passenger
    vessels to cruise off their essential trade routes for two-thirds
    of each year.
      Subsec. (d). Pub. L. 92-323, Sec. 1(b), added subd. (4) and
    qualified subd. (1) by making it subject to the provisions in subd.
    (4).
      Subsec. (e). Pub. L. 92-323, Sec. 1(c), changed phraseology.
      1970 - Subsec. (b). Pub. L. 91-250, Sec. 1(a), substituted "(e)"
    for "(d)" after "under subsection".
      Subsec. (c). Pub. L. 91-250, Sec. 1(b), substituted provision
    that Secretary of Commerce may authorize passenger vessels under
    operating-differential subsidy contracts to provide domestic
    service between specified ports under stated conditions, for
    provision stating conditions for operating passenger vessels on
    cruises.
      Subsec. (d). Pub. L. 91-250, Sec. 1(c), added subsec. (d). Former
    subsec. (d) redesignated (e).
      Subsec. (e). Pub. L. 91-250, Sec. 1(c), (d), redesignated former
    subsec. (d) as (e). Former subsec. (e), which defined seacoasts of
    the United States, was struck out.
      1968 - Subsec. (b). Pub. L. 90-358, Sec. 1, substituted reference
    to passenger vessels with respect to which a contract for the
    payment of an operating-differential subsidy has been entered into
    under section 1173 of this Appendix effective before January 2,
    1960, for reference to passenger vessels with respect to which an
    application for operating-differential subsidy has been filed under
    section 1171 of this Appendix, increased from four to eight months
    of each year the length of the period during which vessels may
    engage in cruises, and limited the cruising period each year to
    seven months in the case of ports regularly served by another
    United States-flag passenger vessel pursuant to an operating-
    differential subsidy contract.
      Subsecs. (d) to (f). Pub. L. 90-358, Sec. 2(a), (b), redesignated
    subsecs. (e) and (f) as (d) and (e), respectively. Former subsec.
    (d), making provision for periodic review of operating differential
    subsidy contracts entered into under this subchapter and for
    amendment of such contracts, was repealed.

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      For transfer of functions of Federal Maritime Board, see Reorg.
    Plan No. 7 of 1961, set out under section 1111 of this Appendix.

-End-

-CITE-
    46 USC APPENDIX Sec. 1183a                                  01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER VI - VESSEL OPERATING ASSISTANCE PROGRAMS
    Part A - Operating-Differential Subsidy Program

-HEAD-
    Sec. 1183a. Off-season cruises additional to right of operator to
      make voyages on regular service, route, or line, including
      approved deviations

-STATUTE-
      The cruises authorized by section 1183 of this Appendix shall be
    in addition to and not in derogation of the right of an operator to
    make voyages on his regular service, route or line, including
    approved deviations within the general area of his essential
    service. There shall be no adjustment of subsidy in the event of
    such deviations if they are without prejudice to the adequacy of
    service.

-SOURCE-
    (Pub. L. 87-45, Sec. 7, May 27, 1961, 75 Stat. 91.)

-COD-
                               CODIFICATION                           
      Section was not enacted as part of the Merchant Marine Act, 1936,
    which comprises this chapter.

-End-

-CITE-
    46 USC APPENDIX Sec. 1184                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER VI - VESSEL OPERATING ASSISTANCE PROGRAMS
    Part A - Operating-Differential Subsidy Program

-HEAD-
    Sec. 1184. Suspension of operating differential subsidy contracts
      by operator recipients

-STATUTE-
      (a) Any operator receiving operating differential subsidy funds
    may elect, for all or a portion of its ships, to suspend its
    operating differential subsidy contract with all attendant
    statutory and contractual restrictions, except as to those
    pertaining to the domestic intercoastal or coastwise service,
    including any agreement providing for the replacement of vessels,
    if - 
        (1) the vessel is less than ten years of age;
        (2) the suspension period is not less than twelve months;
        (3) the operator's financial condition is maintained at a level
      acceptable to the Secretary of Commerce; and
        (4) the owner agrees to pay to the Secretary, upon such terms
      and conditions as he may prescribe, an amount which bears the
      same proportion to the construction differential subsidy paid by
      the Secretary as the portion of the suspension period during
      which the vessel is operated in any preference trade from which a
      subsidized vessel would otherwise be excluded by law or contract
      bears to the entire economic life of the vessel.

      (b) Any operator making an election under this section is
    entitled to full reinstatement of the suspended contract on
    request. The Secretary of Commerce may prescribe rules and
    regulations consistent with the purpose of this section.

-SOURCE-
    (June 29, 1936, ch. 858, title VI, Sec. 614, as added Pub. L. 97-
    35, title XVI, Sec. 1603, Aug. 13, 1981, 95 Stat. 751.)

-End-

-CITE-
    46 USC APPENDIX Sec. 1185                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER VI - VESSEL OPERATING ASSISTANCE PROGRAMS
    Part A - Operating-Differential Subsidy Program

-HEAD-
    Sec. 1185. Construction, reconstruction, or acquisition of vessels
      over five thousand deadweight tons in foreign shipyards;
      preconditions

-STATUTE-
      (a) The Secretary of Commerce may, until September 30, 1983,
    authorize an operator receiving or applying for operating
    differential subsidy under this subchapter to construct,
    reconstruct, or acquire its vessels of over five thousand
    deadweight tons in a foreign shipyard if the Secretary finds and
    certifies in writing that such operator's application for
    construction differential subsidy cannot be approved due to the
    unavailability of funds in the construction differential subsidy
    account. Vessels constructed, reconstructed, or modified pursuant
    to this section shall be deemed to have been United States built
    for the purposes of this subchapter, section 1241(b) of this
    Appendix, and sections 3704 to 3709 of title 46: Provided, That the
    provisions of section 1177 of this Appendix shall not apply to
    vessels constructed, reconstructed, modified, or acquired pursuant
    to this section.
      (b) The provisions of this section shall be effective for fiscal
    year 1983 only if the President in his annual budget message for
    that year requests at least $100,000,000 in construction
    differential subsidy or proposes an alternate program that would
    create equivalent merchant shipbuilding activity in privately owned
    United States shipyards and the Secretary reports to Congress on
    the effect such action will have on the shipyard mobilization base
    at least thirty days prior to making the certification referred to
    in subsection (a) of this section.

-SOURCE-
    (June 29, 1936, ch. 858, title VI, Sec. 615, as added Pub. L. 97-
    35, title XVI, Sec. 1610, Aug. 13, 1981, 95 Stat. 753.)

-COD-
                               CODIFICATION                           
      In subsec. (a), "sections 3704 to 3709 of title 46" substituted
    for "section 5(7) of the Port and Tanker Safety Act of 1978 [46
    U.S.C. 391a(7)]" on authority of Pub. L. 98-89, Sec. 2(b), Aug. 26,
    1983, 97 Stat. 598, section 1 of which enacted Title 46, Shipping.

-End-

-CITE-
    46 USC APPENDIX Sec. 1185a                                  01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER VI - VESSEL OPERATING ASSISTANCE PROGRAMS
    Part A - Operating-Differential Subsidy Program

-HEAD-
    Sec. 1185a. Wind-up of program

-STATUTE-
    (a) In general
      After October 8, 1996, the Secretary of Transportation shall not
    enter into any new contract for operating-differential subsidy
    under this part.
    (b) Existing subsidy contracts
      Notwithstanding any other provision of this chapter, any
    operating-differential subsidy contract in effect under this
    subchapter on the day before October 8, 1996, shall continue in
    effect and terminate as set forth in the contract, unless
    voluntarily terminated at an earlier date by the parties (other
    than the United States Government) to the contract.
    (c) Essential service and port equity requirements
      The essential service requirements of section (!1) 1171(a) and
    1173(b) of this Appendix, and the provisions of sections 1175(c)
    and 1213(a) of this Appendix, shall not apply to the operating-
    differential subsidy program under this part effective upon the
    earlier of - 

        (1) the date that a payment is made, under the Maritime
      Security Program established by part B of this subchapter to a
      contractor under that part who is not party to an operating-
      differential subsidy contract under this part, with the
      Secretary to cause notice of the date of such payment to be
      published in the Federal Register as soon as possible; or
        (2) with respect to a particular contractor under the operating-
      differential subsidy program, the date that contractor enters
      into a contract with the Secretary under the Maritime Security
      Program established by part B of this subchapter.
    (d) Transfer and registration of vessel
      (1) Notwithstanding any other provision of law, a vessel may be
    transferred and registered under an effective United States-
    controlled foreign flag if - 
        (A) the operator of the vessel receives an operating-
      differential subsidy pursuant to a contract under this part
      which is in force on October 1, 1994, and the Secretary approves
      the replacement of such vessel with a comparable vessel, or
        (B) the vessel is covered by an operating agreement under part
      B of this subchapter, and the Secretary approves the replacement
      of such vessel with a comparable vessel for inclusion in the
      Maritime Security Fleet established under part B of this
      subchapter.

      (2) Any such vessel may be requisitioned by the Secretary of
    Transportation pursuant to section 1242 of this Appendix.

-SOURCE-
    (June 29, 1936, ch. 858, title VI, Sec. 616, as added Pub. L. 104-
    239, Sec. 3(b), Oct. 8, 1996, 110 Stat. 3127.)

-FOOTNOTE-
    (!1) So in original. Probably should be "sections".

-End-

-CITE-
    46 USC APPENDIX Part B - Maritime Security Fleet
           Program                                         01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER VI - VESSEL OPERATING ASSISTANCE PROGRAMS
    Part B - Maritime Security Fleet Program

-HEAD-
                 PART B - MARITIME SECURITY FLEET PROGRAM             

-End-

-CITE-
    46 USC APPENDIX Secs. 1187 to 1187e                         01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER VI - VESSEL OPERATING ASSISTANCE PROGRAMS
    Part B - Maritime Security Fleet Program

-HEAD-
    Secs. 1187 to 1187e. Repealed. Pub. L. 108-136, div. C, title XXXV,
      Sec. 3534(a)(1), Nov. 24, 2003, 117 Stat. 1818

-MISC1-
      Section 1187, act June 29, 1936, ch. 858, title VI, Sec. 651, as
    added Pub. L. 104-239, Sec. 2(2), Oct. 8, 1996, 110 Stat. 3118,
    related to establishment of fleet.
      Section 1187a, act June 29, 1936, ch. 858, title VI, Sec. 652, as
    added Pub. L. 104-239, Sec. 2(2), Oct. 8, 1996, 110 Stat. 3119;
    amended Pub. L. 105-85, div. C, title XXXVI, Sec. 3603(b), Nov. 18,
    1997, 111 Stat. 2075, related to operating agreements.
      Section 1187b, act June 29, 1936, ch. 858, title VI, Sec. 653, as
    added Pub. L. 104-239, Sec. 2(2), Oct. 8, 1996, 110 Stat. 3124;
    amended Pub. L. 105-85, div. C, title XXXVI, Sec. 3604, Nov. 18,
    1997, 111 Stat. 2076, related to national security requirements.
      Section 1187c, act June 29, 1936, ch. 858, title VI, Sec. 654, as
    added Pub. L. 104-239, Sec. 2(2), Oct. 8, 1996, 110 Stat. 3126, set
    out definitions.
      Section 1187d, act June 29, 1936, ch. 858, title VI, Sec. 655, as
    added Pub. L. 104-239, Sec. 2(2), Oct. 8, 1996, 110 Stat. 3126,
    authorized appropriations.
      Section 1187e, act June 29, 1936, ch. 858, title VI, Sec. 656, as
    added Pub. L. 104-239, Sec. 4(a), Oct. 8, 1996, 110 Stat. 3127;
    amended Pub. L. 105-85, div. C, title XXXVI, Sec. 3603(a), Nov. 18,
    1997, 111 Stat. 2075, related to noncontiguous domestic trades.

                         EFFECTIVE DATE OF REPEAL                     
      Repeal effective Oct. 1, 2005, see section 3537(b) of Pub. L. 108-
    136, set out as an Effective Date note under section 53101 of
    Title 46, Shipping.

-End-

-CITE-
    46 USC APPENDIX SUBCHAPTER VII - PRIVATE CHARTER
           OPERATION                                       01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER VII - PRIVATE CHARTER OPERATION

-HEAD-
                SUBCHAPTER VII - PRIVATE CHARTER OPERATION            

-End-

-CITE-
    46 USC APPENDIX Sec. 1191                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER VII - PRIVATE CHARTER OPERATION

-HEAD-
    Sec. 1191. Additional powers of Secretary for completion of program

-STATUTE-
      Whenever the Secretary of Transportation shall find and
    determine, and such finding and determination shall be approved by
    the President of the United States, that the national policy
    declared in section 1101 of this Appendix, and the objectives set
    forth in section 1120 of this Appendix, cannot be fully realized
    within a reasonable time, in whole or in part, under the provisions
    of subchapters V and VI of this chapter, the Secretary of
    Transportation is authorized and directed to complete his long-
    range program previously adopted as provided in this subchapter.

-SOURCE-
    (June 29, 1936, ch. 858, title VII, Sec. 701, 49 Stat. 2008; Pub.
    L. 97-31, Sec. 12(103), Aug. 6, 1981, 95 Stat. 162.)

-MISC1-
                                AMENDMENTS                            
      1981 - Pub. L. 97-31 substituted "Secretary of Transportation"
    for "Commission" in two places. For prior transfers of functions of
    the Commission, meaning the United States Maritime Commission, see
    Transfer of Functions note below.

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      For transfer of functions of United States Maritime Commission,
    see Reorg. Plan No. 6 of 1949, Reorg. Plan No. 21 of 1950, and
    Reorg. Plan No. 7 of 1961, set out under section 1111 of this
    Appendix.

-MISC2-
                           FINDING OF COMMISSION                       
      Former United States Maritime Commission made findings and
    determinations on Apr. 28, 1938, which were approved by the
    President on Apr. 29, 1938, that the national policy declared in
    section 1101 of this Appendix and the objectives set forth in
    section 1120 of this Appendix could not with respect to
    construction of new vessels be fully realized within a reasonable
    time under the provisions of subchapters V and VI of this chapter.

-End-

-CITE-
    46 USC APPENDIX Sec. 1192                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER VII - PRIVATE CHARTER OPERATION

-HEAD-
    Sec. 1192. Construction or reconditioning of vessels by Secretary

-STATUTE-
      The Secretary of Transportation is authorized to have constructed
    in shipyards in the continental United States such new vessels as
    he shall determine may be required to carry out the objects of this
    chapter, and to have old vessels reconditioned or remodeled in such
    yards: Provided, That if satisfactory contracts for such new
    construction or reconstruction, in accordance with the provisions
    of this chapter, cannot be obtained from private shipbuilders, the
    Secretary of Transportation is authorized to have such vessels
    constructed, reconditioned, or remodeled in United States navy
    yards. For the purposes of this section, the term "continental
    United States" includes the States of Alaska and Hawaii.

-SOURCE-
    (June 29, 1936, ch. 858, title VII, Sec. 702, 49 Stat. 2008; Pub.
    L. 85-191, Aug. 28, 1957, 71 Stat. 471; Pub. L. 86-624, Sec. 35(c),
    July 12, 1960, 74 Stat. 421; Pub. L. 97-31, Sec. 12(104), Aug. 6,
    1981, 95 Stat. 162.)

-MISC1-
                                AMENDMENTS                            
      1981 - Pub. L. 97-31 substituted "Secretary of Transportation"
    for "Commission" in two places and "he" for "it". For prior
    transfers of functions of the Commission, meaning the United States
    Maritime Commission, see Transfer of Functions note below.
      1960 - Pub. L. 86-624 inserted definition of "continental United
    States".
      1957 - Pub. L. 85-191 substituted "in shipyards in the
    continental United States" for "in domestic yards, on the Atlantic
    and Gulf and Pacific coasts,".

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      For transfer of functions of United States Maritime Commission,
    see Reorg. Plan No. 6 of 1949, Reorg. Plan No. 21 of 1950, and
    Reorg. Plan No. 7 of 1961, set out under section 1111 of this
    Appendix.

-End-

-CITE-
    46 USC APPENDIX Sec. 1193                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER VII - PRIVATE CHARTER OPERATION

-HEAD-
    Sec. 1193. Competitive bidding

-STATUTE-
    (a) Construction, reconstruction, or reconditioning of vessels
      No contract for the building of a new vessel, or for the
    reconditioning or reconstruction of any other vessel, shall be made
    by the Secretary of Transportation with any private shipbuilder,
    except after due advertisement and upon sealed competitive bids.
    (b) Requirements
      All contracts for the construction, reconditioning, or
    reconstruction of a vessel or vessels by a private shipbuilder
    under authority of this subchapter shall be subject to all the
    provisions and requirements prescribed in subchapter V of this
    chapter with respect to contracts with a private shipbuilder for
    the construction of vessels under authority of said subchapter.
    (c) Opening of bids
      All bids required by the Secretary of Transportation for the
    construction, reconstruction, or reconditioning of vessels, and for
    the chartering of the Secretary's vessels hereinafter provided for,
    shall be opened at the time, hour, and place stated in the
    advertisement for bids, and all interested persons, including
    representatives of the press, shall be permitted to attend, and the
    results of such bidding shall be publicly announced.

-SOURCE-
    (June 29, 1936, ch. 858, title VII, Sec. 703, 49 Stat. 2008; Pub.
    L. 97-31, Sec. 12(105), Aug. 6, 1981, 95 Stat. 163.)

-MISC1-
                                AMENDMENTS                            
      1981 - Subsec. (a). Pub. L. 97-31, Sec. 12(105)(A), substituted
    "Secretary of Transportation" for "Commission". For prior transfers
    of functions of the Commission, meaning the United States Maritime
    Commission, see Transfer of Functions note below.
      Subsec. (c). Pub. L. 97-31, Sec. 12(105), substituted "Secretary
    of Transportation" for "Commission" and "Secretary's" for
    "Commission's". For prior transfers of functions of the Commission,
    meaning the United States Maritime Commission, see Transfer of
    Functions note below.

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      For transfer of functions of United States Maritime Commission,
    see Reorg. Plan No. 6 of 1949, Reorg. Plan No. 21 of 1950, and
    Reorg. Plan No. 7 of 1961, set out under section 1111 of this
    Appendix.

-End-

-CITE-
    46 USC APPENDIX Sec. 1194                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER VII - PRIVATE CHARTER OPERATION

-HEAD-
    Sec. 1194. Charter or sale of vessels acquired by Department of
      Transportation

-STATUTE-
      All vessels transferred to or otherwise acquired by the
    Department of Transportation in any manner may be chartered or sold
    by the Secretary of Transportation pursuant to the further
    provisions of this chapter.

-SOURCE-
    (June 29, 1936, ch. 858, title VII, Sec. 704, 49 Stat. 2008; Apr.
    1, 1937, ch. 64, 50 Stat. 57; Pub. L. 97-31, Sec. 12(106), Aug. 6,
    1981, 95 Stat. 163.)

-MISC1-
                                AMENDMENTS                            
      1981 - Pub. L. 97-31 substituted "Department of Transportation"
    for "Commission" the first place it appeared and "Secretary of
    Transportation" for "Commission" the second place it appeared, and
    struck out provisions relating to discontinuance of operation of
    Commission's vessels on lines in foreign commerce under operating
    agreements within one year after June 27, 1936. For prior transfers
    of functions of the Commission, meaning the United States Maritime
    Commission, see Transfer of Functions note below.
      1937 - Act Apr. 1, 1937, substituted "may be temporarily
    operated" for "shall be temporarily operated", required preference
    to be given to present operators, permitted private operators to
    commence voyages prior to the expiration date and to complete them
    thereafter, and inserted provisions providing that nothing
    contained in this section should be construed as limiting the power
    of sale under section 1195 of this Appendix.

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      For transfer of functions of United States Maritime Commission,
    see Reorg. Plan No. 6 of 1949, Reorg. Plan No. 21 of 1950, and
    Reorg. Plan No. 7 of 1961, set out under section 1111 of this
    Appendix.

-MISC2-
              AUTHORITY FOR WARTIME SALE OR CHARTER REPEALED          
      Act May 14, 1940, ch. 201, Sec. 2, 54 Stat. 216, as extended June
    16, 1942, ch. 416, 56 Stat. 370, which related to sale or charter
    of vessels by United States Maritime Commission until six months
    after the end of World War II should have been proclaimed or such
    earlier time as the Congress by concurrent resolution or the
    President might designate, was repealed by act July 25, 1947, ch.
    327, Sec. 1, 61 Stat. 449.

-End-

-CITE-
    46 USC APPENDIX Sec. 1195                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER VII - PRIVATE CHARTER OPERATION

-HEAD-
    Sec. 1195. Employment of vessels on foreign trade routes; selection
      of routes; encouraging private operation by sale or charter;
      selling price

-STATUTE-
      As soon as practicable after June 29, 1936, and continuing
    thereafter, the Secretary of Transportation shall arrange for the
    employment of the Department of Transportation's vessels in
    steamship lines on such trade routes, exclusively serving the
    foreign trade of the United States, as the Secretary of
    Transportation shall determine are necessary and essential for the
    development and maintenance of the commerce of the United States
    and the national defense: Provided, That such needs are not being
    adequately served by existing steamship lines privately owned and
    operated by citizens of the United States and documented under the
    laws of the United States. It shall be the policy of the Secretary
    of Transportation to encourage private operation of each essential
    steamship line now owned by the United States by selling such lines
    to citizens of the United States in the manner provided in section
    7 of the Merchant Marine Act, 1920 [46 App. U.S.C. 866], and in
    strict accordance with the provisions of section 5 of said Act,(!1)
    or by demising his vessels on bare-boat charter to citizens of the
    United States who shall agree to maintain such line or lines in the
    manner hereinafter provided. No vessel constructed under the
    provisions of this chapter, as amended, shall be sold by the
    Secretary of Transportation for operation in the foreign trade for
    a sum less than the estimated foreign construction cost exclusive
    of national defense features (determined as of the date the
    construction contract therefor is executed) less depreciation based
    on a twenty-five year life, nor shall any such vessel be sold by
    the Secretary of Transportation for operation in the domestic trade
    for a sum less than the cost of construction in the United States
    exclusive of national defense features less depreciation based on a
    twenty-five year life.

-SOURCE-
    (June 29, 1936, ch. 858, title VII, Sec. 705, 49 Stat. 2009; Aug.
    4, 1939, ch. 417, Sec. 11(a), 53 Stat. 1185; Pub. L. 86-518, Sec.
    1, June 12, 1960, 74 Stat. 216; Pub. L. 97-31, Sec. 12(107), Aug.
    6, 1981, 95 Stat. 163.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 5 of said Act, referred to in text, was classified to
    section 864 of former Title 46, Shipping, and was repealed by Pub.
    L. 100-710, title II, Sec. 202(4), Nov. 23, 1988, 102 Stat. 4753.

-MISC1-
                                AMENDMENTS                            
      1981 - Pub. L. 97-31 substituted "Secretary of Transportation"
    for "Commission" in four places, "the Department of
    Transportation's vessels" for "its vessels", and "his vessels" for
    "its vessels". For prior transfers of functions of the Commission,
    meaning the United States Maritime Commission, see Transfer of
    Functions note below.
      1960 - Pub. L. 86-518 substituted "twenty-five-year life" for
    "twenty-year life" in two places.
      1939 - Act Aug. 4, 1939, prohibited sale of any vessel
    constructed under this chapter for operation in the foreign trade
    for a sum less than the estimated foreign construction cost
    exclusive of national defense features less depreciation based on a
    20 year life, nor for operation in the domestic trade for a sum
    less than the cost of construction in the United States exclusive
    of national defense features less depreciation based on a 20 year
    life.

                     EFFECTIVE DATE OF 1960 AMENDMENT                 
      Amendment by Pub. L. 86-518 applicable only to vessels delivered
    by the shipbuilder on or after Jan. 1, 1946, and with respect to
    such vessels shall become effective on Jan. 1, 1960, and with
    respect to vessels delivered by the shipbuilder before Jan. 1,
    1946, the provisions of this chapter existing immediately before
    June 12, 1960, shall continue in effect, see section 8(a) of Pub.
    L. 86-518, set out as a note under section 1125 of this Appendix.

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      For transfer of functions of United States Maritime Commission,
    see Reorg. Plan No. 6 of 1949, Reorg. Plan No. 21 of 1950, and
    Reorg. Plan No. 7 of 1961, set out under section 1111 of this
    Appendix.

-MISC2-
      RATE OF DEPRECIATION FOR VESSELS DELIVERED BY SHIPBUILDER ON OR
             AFTER JANUARY 1, 1946, AND BEFORE JANUARY 1, 1960
      For provisions relating to computation of depreciation with
    respect to vessels delivered by the shipbuilder on or after Jan. 1,
    1946, and before Jan. 1, 1960, see section 8(b) of Pub. L. 86-518,
    set out as a note under section 1125 of this Appendix.

    REVISION OF CONTRACTS, COMMITMENTS TO INSURE MORTGAGES, MORTGAGES,
      AND MORTGAGE INSURANCE CONTRACTS ENTERED INTO PRIOR TO JUNE 12,
                                   1960
      For provisions authorizing revision, see section 8(c) of Pub. L.
    86-518, set out as a note under section 1125 of this Appendix.

      COMMERCIAL EXPECTANCY OR PERIOD OF DEPRECIATION OF TANKERS AND
                        OTHER LIQUID BULK CARRIERS
      Nothing in any amendment made by Pub. L. 86-518 to operate or be
    interpreted to change from 20 to 25 years the provisions of this
    chapter relating to the commercial expectancy or period of
    depreciation of any tanker or other liquid bulk carrier, see
    section 9 of Pub. L. 86-518, set out as a note under section 1125
    of this Appendix.

-FOOTNOTE-
    (!1) See References in Text note below.

-End-

-CITE-
    46 USC APPENDIX Sec. 1196                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER VII - PRIVATE CHARTER OPERATION

-HEAD-
    Sec. 1196. Advertising for bids for charters; rejection of bids

-STATUTE-
      (a) The Secretary of Transportation shall not charter the
    Department of Transportation's vessels to private operators except
    upon competitive sealed bids submitted in strict compliance with
    all the terms and conditions of a public advertisement soliciting
    such bids. Each and every advertisement for bids to charter the
    Department of Transportation's vessels shall state the number,
    type, and tonnage of the vessels the Secretary of Transportation is
    offering for bare-boat charter for operation as a steamship line on
    a designated trade route, the minimum number of sailings that will
    be required, the length of time for which the charter will be
    given, and all other information the Secretary of Transportation
    shall deem necessary for the information of prospective bidders.
      (b) The Secretary of Transportation shall have authority to, and
    shall announce in his advertisements for bids that the Secretary of
    Transportation reserves the right to, reject any and all bids
    submitted. The Secretary of Transportation shall reject any bid for
    the charter (under sections 1191 to 1203 of this Appendix) of any
    vessel constructed under the provisions of this chapter, as
    amended, if the charter hire offered by the bidder is lower than
    the minimum charter hire for such vessel would be if chartered
    under the provisions of section 1204 of this Appendix.

-SOURCE-
    (June 29, 1936, ch. 858, title VII, Sec. 706, 49 Stat. 2009; Aug.
    4, 1939, ch. 417, Sec. 11(b), 53 Stat. 1186; Pub. L. 97-31, Sec.
    12(108), Aug. 6, 1981, 95 Stat. 163.)

-MISC1-
                                AMENDMENTS                            
      1981 - Subsec. (a). Pub. L. 97-31, Sec. 12(108)(A)-(C),
    substituted "Secretary of Transportation" for "Commission" in three
    places, "the Department of Transportation's vessels" for "its
    vessels", and "the Department of Transportation's vessels" for
    "Commission's vessels". For prior transfers of functions of the
    Commission, meaning the United States Maritime Commission, see
    Transfer of Functions note below.
      Subsec. (b). Pub. L. 97-31, Sec. 12(108)(A), (D), substituted
    "Secretary of Transportation" for "Commission" in three places and
    "his" for "its". For prior transfers of functions of the
    Commission, meaning the United States Maritime Commission, see
    Transfer of Functions note below.
      1939 - Subsec. (b). Act Aug. 4, 1939, required rejection of any
    bids for charter if the charter hire offered by the bidder is lower
    than the minimum charter hire for such vessel would be if chartered
    under the provisions of section 1204 of this Appendix.

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      For transfer of functions of United States Maritime Commission,
    see Reorg. Plan No. 6 of 1949, Reorg. Plan No. 21 of 1950, and
    Reorg. Plan No. 7 of 1961, set out under section 1111 of this
    Appendix.

-End-

-CITE-
    46 USC APPENDIX Sec. 1197                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER VII - PRIVATE CHARTER OPERATION

-HEAD-
    Sec. 1197. Awarding charter on bids

-STATUTE-
    (a) Highest bid
      The Secretary of Transportation shall award the charter to the
    bidder proposing to pay the highest monthly charter hire unless the
    Secretary of Transportation shall reject such bid for the reasons
    set forth in subsection (b) of this section.
    (b) Rejection of highest bid
      The Secretary of Transportation may reject the highest or most
    advantageous or any other bid, if, in the Secretary's discretion,
    the charter hire offered is deemed too low, or the Secretary of
    Transportation determines that the bidder lacks sufficient capital,
    credit, or experience to operate successfully the line; but the
    reason or reasons for rejection of any bid, upon request of the
    bidder, shall be stated to such bidder in writing.
    (c) Next highest bid; rejection of all bids and readvertisement
      If the highest bid is rejected, the Secretary of Transportation
    may award the charter to the next highest bidder, or may reject all
    bids and readvertise the line: Provided, however, That the
    Secretary of Transportation may operate the line until conditions
    appear to be more favorable for a reoffering of the line for
    private charter.

-SOURCE-
    (June 29, 1936, ch. 858, title VII, Sec. 707, 49 Stat. 2009; Pub.
    L. 97-31, Sec. 12(109), Aug. 6, 1981, 95 Stat. 163.)

-MISC1-
                                AMENDMENTS                            
      1981 - Subsec. (a). Pub. L. 97-31, Sec. 12(109)(A), substituted
    "Secretary of Transportation" for "Commission" in two places. For
    prior transfers of functions of the Commission, meaning the United
    States Maritime Commission, see Transfer of Functions note below.
      Subsec. (b). Pub. L. 97-31, Sec. 12(109), substituted "Secretary
    of Transportation" for "Commission" in two places and "Secretary's
    discretion" for "Commission's discretion". For prior transfers of
    functions of the Commission, meaning the United States Maritime
    Commission, see Transfer of Functions note below.
      Subsec. (c). Pub. L. 97-31, Sec. 12(109)(A), substituted
    "Secretary of Transportation" for "Commission" in two places. For
    prior transfers of functions of the Commission, meaning the United
    States Maritime Commission, see Transfer of Functions note below.

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      For transfer of functions of United States Maritime Commission,
    see Reorg. Plan No. 6 of 1949, Reorg. Plan No. 21 of 1950, and
    Reorg. Plan No. 7 of 1961, set out under section 1111 of this
    Appendix.

-End-

-CITE-
    46 USC APPENDIX Sec. 1198                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER VII - PRIVATE CHARTER OPERATION

-HEAD-
    Sec. 1198. Payment of subsidies to charterers

-STATUTE-
      The Secretary of Transportation may, if in his discretion
    financial aid is deemed necessary, enter into a contract with any
    charterer of his vessels for payment to such charterer of an
    operating-differential subsidy upon the same terms and conditions
    and subject to the same limitations and restrictions, where
    applicable, as are elsewhere provided in this chapter with respect
    to payments of such subsidies to operators of privately owned
    vessels.

-SOURCE-
    (June 29, 1936, ch. 858, title VII, Sec. 708, 49 Stat. 2009; June
    23, 1938, ch. 600, Sec. 31, 52 Stat. 962; Pub. L. 97-31, Sec.
    12(110), Aug. 6, 1981, 95 Stat. 163.)

-MISC1-
                                AMENDMENTS                            
      1981 - Pub. L. 97-31 substituted "Secretary of Transportation"
    for "Commission" and "his" for "its" in two places. For prior
    transfers of functions of the Commission, meaning the United States
    Maritime Commission, see Transfer of Functions note below.
      1938 - Act June 23, 1938, inserted ", where applicable," before
    "as are elsewhere provided".

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      For transfer of functions of United States Maritime Commission,
    see Reorg. Plan No. 6 of 1949, Reorg. Plan No. 21 of 1950, and
    Reorg. Plan No. 7 of 1961, set out under section 1111 of this
    Appendix.

-End-

-CITE-
    46 USC APPENDIX Sec. 1199                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER VII - PRIVATE CHARTER OPERATION

-HEAD-
    Sec. 1199. Excess profit; payment to Secretary; formula for
      determining profit

-STATUTE-
      (a) Every charter made by the Secretary of Transportation
    pursuant to the provisions of this subchapter shall provide that
    whenever, at the end of any calendar year subsequent to the
    execution of such charter, the cumulative net voyage profits (after
    payment of the charter hire reserved in the charter and payment of
    the charterer's fair and reasonable overhead expenses applicable to
    operation of the chartered vessels) shall exceed 10 per centum per
    annum on the charterer's capital necessarily employed in the
    business of such chartered vessels, the charterer shall pay over to
    the Secretary of Transportation, as additional charter hire, one-
    half of such cumulative net voyage profit in excess of 10 per
    centum per annum: Provided, That the cumulative net profit so
    accounted for shall not be included in any calculation of
    cumulative net profit in subsequent years.
      (b) Every charter shall contain a definition of the terms "net
    voyage profit" and "fair and reasonable overhead expenses", and
    "capital necessarily employed", as said terms are used in
    subsection (a) of this section, setting forth the formula for
    determining such profit and overhead expense and capital
    necessarily employed, which definitions shall have been previously
    approved by the Secretary of Transportation and published in the
    advertisement for bids for such charter.

-SOURCE-
    (June 29, 1936, ch. 858, title VII, Sec. 709, 49 Stat. 2010; Pub.
    L. 97-31, Sec. 12(111), Aug. 6, 1981, 95 Stat. 163.)

-MISC1-
                                AMENDMENTS                            
      1981 - Pub. L. 97-31 substituted "Secretary of Transportation"
    for "Commission" in two places in subsec. (a) and once in subsec.
    (b). For prior transfers of functions of the Commission, meaning
    the United States Maritime Commission, see Transfer of Functions
    note below.

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      For transfer of functions of United States Maritime Commission,
    see Reorg. Plan No. 6 of 1949, Reorg. Plan No. 21 of 1950, and
    Reorg. Plan No. 7 of 1961, set out under section 1111 of this
    Appendix.

-End-

-CITE-
    46 USC APPENDIX Sec. 1200                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER VII - PRIVATE CHARTER OPERATION

-HEAD-
    Sec. 1200. Undertaking required of charterer

-STATUTE-
      Every charterer of the Secretary of Transportation's vessels
    shall be required to deposit with the Secretary of Transportation
    an undertaking with approved sureties as security for the faithful
    performance of all of the conditions of the charter, including
    indemnity against liens on the chartered vessels, in such amount as
    the Secretary of Transportation shall require.

-SOURCE-
    (June 29, 1936, ch. 858, title VII, Sec. 710, 49 Stat. 2010; Pub.
    L. 97-31, Sec. 12(112), Aug. 6, 1981, 95 Stat. 163.)

-MISC1-
                                AMENDMENTS                            
      1981 - Pub. L. 97-31 substituted "Secretary of Transportation's
    vessels" for "Commission's vessels" and "Secretary of
    Transportation" for "Commission" in two places. For prior transfers
    of functions of the Commission, meaning the United States Maritime
    Commission, see Transfer of Functions note below.

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      For transfer of functions of United States Maritime Commission,
    see Reorg. Plan No. 6 of 1949, Reorg. Plan No. 21 of 1950, and
    Reorg. Plan No. 7 of 1961, set out under section 1111 of this
    Appendix.

-End-

-CITE-
    46 USC APPENDIX Sec. 1201                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER VII - PRIVATE CHARTER OPERATION

-HEAD-
    Sec. 1201. Terms and conditions of charters

-STATUTE-
      The charters to be made by the Secretary of Transportation
    pursuant to the provisions of this subchapter shall demise the
    vessels to the charterer subject to all usual conditions contained
    in bareboat charters, and until January 1, 1940, shall be for terms
    of three years or less as the Secretary of Transportation may
    decide: Provided, That after January 1, 1940, charters may be
    executed by the Secretary of Transportation for such terms as the
    experience gained by the Secretary of Transportation shall indicate
    are to the best interests of the United States and the merchant
    marine.

-SOURCE-
    (June 29, 1936, ch. 858, title VII, Sec. 711, 49 Stat. 2010; Pub.
    L. 97-31, Sec. 12(113), Aug. 6, 1981, 95 Stat. 163.)

-MISC1-
                                AMENDMENTS                            
      1981 - Pub. L. 97-31 substituted "Secretary of Transportation"
    for "Commission" in four places. For prior transfers of functions
    of the Commission, meaning the United States Maritime Commission,
    see Transfer of Functions note below.

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      For transfer of functions of United States Maritime Commission,
    see Reorg. Plan No. 6 of 1949, Reorg. Plan No. 21 of 1950, and
    Reorg. Plan No. 7 of 1961, set out under section 1111 of this
    Appendix.

-End-

-CITE-
    46 USC APPENDIX Sec. 1202                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER VII - PRIVATE CHARTER OPERATION

-HEAD-
    Sec. 1202. Insurance requirements; repairs; inspection by
      Secretary; termination of charter in national emergency

-STATUTE-
      Every charter shall provide - 
      (a) That the charterer shall carry on the chartered vessels, at
    his own expense, policies of insurance covering all marine and port
    risks, protection and indemnity risks, and all other hazards and
    liabilities, in such amounts, in such form, and in such insurance
    companies as the Secretary of Transportation shall require and
    approve, adequate to cover all damages claimed against and losses
    sustained by the chartered vessels arising during the life of the
    charter: Provided, That in accordance with existing law, some or
    all of such insurance risks may be underwritten by the Secretary of
    Transportation himself as in his discretion he may determine.
      (b) That the charterer shall at its own expense keep the
    chartered vessel in good state of repair and in efficient operating
    condition and shall at its own expense make any and all repairs as
    may be required by the Secretary of Transportation.
      (c) That the Secretary of Transportation shall have the right to
    inspect the vessel at any and all times to ascertain its condition.
      (d) That whenever the President shall proclaim that the security
    of the national defense makes it advisable, or during any national
    emergency declared by proclamation of the President, the Secretary
    of Transportation may terminate the charter without cost to the
    United States, upon such notice to the charterers as the President
    shall determine.

-SOURCE-
    (June 29, 1936, ch. 858, title VII, Sec. 712, 49 Stat. 2010; Aug.
    7, 1939, ch. 555, Sec. 1, 53 Stat. 1254; Pub. L. 97-31, Sec.
    12(114), Aug. 6, 1981, 95 Stat. 163.)

-MISC1-
                                AMENDMENTS                            
      1981 - Subsec. (a). Pub. L. 97-31 substituted "Secretary of
    Transportation" for "Commission" in two places, and "himself",
    "his", and "he" for "itself", "its", and "it", respectively. For
    prior transfers of functions of the Commission, meaning the United
    States Maritime Commission, see Transfer of Functions note below.
      Subsecs. (b) to (d). Pub. L. 97-31 substituted "Secretary of
    Transportation" for "Commission". For prior transfers of functions
    of the Commission, meaning the United States Maritime Commission,
    see Transfer of Functions note below.
      1939 - Subsec. (d). Act Aug. 7, 1939, permitted termination of a
    charter whenever the President proclaims that the security of the
    national defense makes it advisable.

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      For transfer of functions of United States Maritime Commission,
    see Reorg. Plan No. 6 of 1949, Reorg. Plan No. 21 of 1950, and
    Reorg. Plan No. 7 of 1961, set out under section 1111 of this
    Appendix.

-MISC2-
                    TERMINATION OF WAR AND EMERGENCIES                
      Act July 25, 1947, ch. 327, Sec. 3, 61 Stat. 451, provided that
    in the interpretation of subsec. (d) of this section, the date July
    25, 1947, shall be deemed to be the date of termination of any
    state of war theretofore declared by Congress and of the national
    emergencies proclaimed by the President on Sept. 8, 1939, and May
    27, 1941.

-End-

-CITE-
    46 USC APPENDIX Sec. 1203                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER VII - PRIVATE CHARTER OPERATION

-HEAD-
    Sec. 1203. Financial resources and other factors considered in
      awarding charters

-STATUTE-
      In the awarding of charters, the Secretary of Transportation
    shall take in consideration the charterer's financial resources and
    credit standing, practical experience in the operation of vessels,
    and any other factors that would be considered by a prudent
    businessman in entering into a transaction involving a large
    investment of his capital; and the Secretary of Transportation is
    directed to refrain from chartering the Department of
    Transportation's vessels to any person appearing to lack sufficient
    capital, credit, and experience to operate successfully the vessel
    over the period covered by the charter.

-SOURCE-
    (June 29, 1936, ch. 858, title VII, Sec. 713, 49 Stat. 2010; Pub.
    L. 97-31, Sec. 12(115), Aug. 6, 1981, 95 Stat. 164.)

-MISC1-
                                AMENDMENTS                            
      1981 - Pub. L. 97-31 substituted "Secretary of Transportation"
    for "Commission" in two places and "the Department of
    Transportation's vessels" for "its vessels". For prior transfers of
    functions of the Commission, meaning the United States Maritime
    Commission, see Transfer of Functions note below.

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      For transfer of functions of United States Maritime Commission,
    see Reorg. Plan No. 6 of 1949, Reorg. Plan No. 21 of 1950, and
    Reorg. Plan No. 7 of 1961, set out under section 1111 of this
    Appendix.

-End-

-CITE-
    46 USC APPENDIX Sec. 1204                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER VII - PRIVATE CHARTER OPERATION

-HEAD-
    Sec. 1204. Construction and chartering of vessels for unsuccessful
      routes; purchase of vessel by charterer; purchase price;
      operation of vessel in foreign trade

-STATUTE-
      If the Secretary of Transportation shall find that any trade
    route (determined by the Secretary of Transportation to be an
    essential trade route as provided in section 1121 of this Appendix)
    cannot be successfully developed and maintained and the Secretary
    of Transportation's replacement program cannot be achieved under
    private operation of such trade route by a citizen of the United
    States with vessels registered under the laws thereof, without
    further Government aid in addition to the financial aids authorized
    under subchapters V and VI of this chapter, the Secretary of
    Transportation is authorized to have constructed, in private
    shipyards or in navy yards, the vessel or vessels of the types
    deemed necessary for such trade route, and to demise such new
    vessel or vessels, or bare-boat charter to the American-flag
    operator established on such trade route, without advertisement or
    competition, upon an annual charter hire of not less than 4 per
    centum of the price (herein referred to as the "foreign cost") at
    which such vessel or vessels would be sold if constructed under
    subchapter V of this chapter plus an amount equal to (i) the sum of
    a percentage of the depreciated foreign cost computed annually upon
    the basis of a twenty-five year life of the vessel determined by
    the Secretary of the Treasury, taking into consideration the
    current average market yield on outstanding marketable obligations
    of the United States with remaining periods to maturity comparable
    to the term of the charter, adjusted to the nearest one-eighth of 1
    per centum, plus (ii) an allowance adequate in the judgment of the
    Secretary of Transportation to cover administrative costs. Such
    charter may contain an option to the charterer to purchase such
    vessel or vessels from the Secretary of Transportation within five
    years after delivery thereof under the charter, upon the same terms
    and conditions as are provided in subchapter V of this chapter for
    the purchase of new vessels from the Secretary of Transportation,
    except that (a) the purchase price shall be the foreign cost less
    depreciation to the date of purchase based upon a twenty-five year
    life; (b) the required cash payment payable at the time of such
    purchase shall be 25 per centum of the purchase price as so
    determined; (c) the charter may provide that all or any part of the
    charter hire paid in excess of the minimum charter hire provided
    for in this section may be credited against the cash payment
    payable at the time of such purchase; (d) the balance of the
    purchase price shall be paid within the years remaining of the
    twenty-five years after the date of delivery of the vessel under
    the charter and in approximately equal annual installments, except
    that the first of said installments, which shall be payable upon
    the next ensuing anniversary date of such delivery under the
    charter, shall be a proportionate part of the annual installment,
    interest to be payable upon the unpaid balances from the date of
    purchase, at a rate not less than (i) a rate determined by the
    Secretary of the Treasury, taking into consideration the current
    average market yield on outstanding marketable obligations of the
    United States with remaining periods to maturity comparable to the
    average maturities of such loans, adjusted to the nearest one-
    eighth of 1 per centum, plus (ii) an allowance adequate in the
    judgment of the Secretary of Transportation to cover administrative
    costs.
      Such charter shall provide for operation of the vessel
    exclusively in foreign trade, or on a round-the-world voyage, or on
    a round voyage from the west coast of the United States to a
    European port or ports which includes intercoastal ports of the
    United States, or a round voyage from the Atlantic coast of the
    United States to the Orient which includes intercoastal ports of
    the United States, or on a voyage in foreign trade on which the
    vessel may stop at the State of Hawaii, or an island possession or
    island Territory of the United States, and if the vessel is
    operated in the domestic trade on any of the above-enumerated
    services the charterer will pay annually to the Secretary of
    Transportation that proportion of one-twenty-fifth of the
    difference between the domestic and foreign cost of such vessel as
    the gross revenue derived from the domestic trade bears to the
    gross revenue derived from the entire voyages completed during the
    preceding year.

-SOURCE-
    (June 29, 1936, ch. 858, title VII, Sec. 714, 49 Stat. 2011; June
    23, 1938, ch. 600, Sec. 32, 52 Stat. 962; Aug. 4, 1939, ch. 417,
    Sec. 12, 53 Stat. 1186; Pub. L. 86-3, Sec. 18(b)(3), Mar. 18, 1959,
    73 Stat. 12; Pub. L. 86-518, Sec. 5, June 12, 1960, 74 Stat. 216;
    Pub. L. 91-469, Sec. 22, Oct. 21, 1970, 84 Stat. 1032; Pub. L. 97-
    31, Sec. 12(116), Aug. 6, 1981, 95 Stat. 164.)

-MISC1-
                                AMENDMENTS                            
      1981 - Pub. L. 97-31 substituted "Secretary of Transportation"
    for "Secretary of Commerce" and "Secretary of Transportation's" for
    "Secretary of Commerce's".
      1970 - Pub. L. 91-469 substituted: "Secretary of Commerce" and
    "Secretary of Commerce's" for "Commission" and "Commission's"
    wherever appearing; provision for an additional amount for charter
    hire equal to sum of depreciated foreign cost computed annually
    upon basis of a twenty-five year life of vessel determined by the
    Secretary of the Treasury, taking into consideration the current
    average market yield or outstanding marketable obligations of the
    United States with remaining periods to maturity comparable to the
    term of the charter, adjusted to the nearest one-eighth of 1 per
    centum plus an administrative cost allowance for prior provision
    for 3 1/2  per centum of depreciated foreign cost computed annually
    upon the basis of a twenty-five year life of vessel; and provision
    for interest upon unpaid balances of purchase price payable in
    annual installments from date of purchase, at a rate not less than
    a rate determined by the Secretary of the Treasury, taking into
    consideration the current average market yield on outstanding
    marketable obligations of the United States with remaining periods
    to maturity comparable to the average maturities of such loans,
    adjusted to the nearest one-eighth of 1 per centum plus an
    administrative cost allowance for prior interest upon unpaid
    balances of 3 1/2  per centum per annum from date of purchase.
      1960 - Pub. L. 86-518 substituted "4 per centum" for "5 per
    centum", "twenty-five-year life" for "twenty-year life" in two
    places, "twenty-five years" for "twenty years", and "one-twenty-
    fifth" for "one-twentieth".
      1959 - Pub. L. 86-3 included stops at the State of Hawaii for
    vessels operated on voyages in foreign trade.
      1939 - Act Aug. 4, 1939, amended section generally, and among
    other changes, substituted "price (herein referred to as the
    'foreign cost') at which such vessel or vessels would be sold if
    constructed under sections 1151-1161 of this Appendix plus 3 1/2 
    per centum of the depreciated foreign cost computed annually upon
    the basis of a twenty-year life of the vessel" for "construction
    cost of such new vessel or vessels", and added second paragraph
    relating to mixed foreign and domestic trade.
      1938 - Act June 23, 1938, required the charter to contain an
    agreement of the purchaser to pay interest at the rate of 3 1/2 
    per centum per annum upon all unpaid portions of the purchase price
    from the date of the delivery of the vessel to the purchaser under
    the charter agreement, and provided that if the option to purchase
    is exercised, the deferred payments shall not be extended beyond
    the life of the vessel computed on a 20 year expectancy.

                     EFFECTIVE DATE OF 1960 AMENDMENT                 
      Amendment by Pub. L. 86-518 applicable only to vessels delivered
    by the shipbuilder on or after Jan. 1, 1946, and with respect to
    such vessels shall become effective on Jan. 1, 1960, and with
    respect to vessels delivered by the shipbuilder before Jan. 1,
    1946, the provisions of this chapter existing immediately before
    June 12, 1960, shall continue in effect, see section 8(a) of Pub.
    L. 86-518, set out as a note under section 1125 of this Appendix.

      RATE OF DEPRECIATION FOR VESSELS DELIVERED BY SHIPBUILDER ON OR
             AFTER JANUARY 1, 1946, AND BEFORE JANUARY 1, 1960
      For provisions relating to computation of depreciation with
    respect to vessels delivered by the shipbuilder on or after Jan. 1,
    1946, and before Jan. 1, 1960, see section 8(b) of Pub. L. 86-518,
    set out as a note under section 1125 of this Appendix.

    REVISION OF CONTRACTS, COMMITMENTS TO INSURE MORTGAGES, MORTGAGES,
      AND MORTGAGE INSURANCE CONTRACTS ENTERED INTO PRIOR TO JUNE 12,
                                   1960
      For provisions authorizing revision, see section 8(c) of Pub. L.
    86-518, set out as a note under section 1125 of this Appendix.

      COMMERCIAL EXPECTANCY OR PERIOD OF DEPRECIATION OF TANKERS AND
                        OTHER LIQUID BULK CARRIERS
      Nothing in any amendment made by Pub. L. 86-518 to operate or be
    interpreted to change from 20 to 25 years the provisions of this
    chapter relating to the commercial expectancy or period of
    depreciation of any tanker or other liquid bulk carrier, see
    section 9 of Pub. L. 86-518, set out as a note under section 1125
    of this Appendix.

-End-

-CITE-
    46 USC APPENDIX Sec. 1205                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER VII - PRIVATE CHARTER OPERATION

-HEAD-
    Sec. 1205. Experimental operation and testing of United States
      vessels; number; bareboat charters; review of charters and agency
      agreements; provisions applicable to charters and agreements

-STATUTE-
      The Secretary of Transportation, for the purpose of practical
    development, trial, and testing, is authorized without regard to
    other provisions of this subchapter or other laws relating to
    chartering and general agency operations, to operate, under general
    agency agreements, or bareboat charter, vessels owned by the United
    States (including any national defense reserve vessel) which have
    been constructed, reconditioned, or remodeled for experimental or
    testing purposes, in the foreign or domestic trade of the United
    States or for use for the account of any agency or department of
    the United States, under such reasonable terms or conditions as the
    Secretary of Transportation determines to be necessary to carry out
    the objects of this chapter: Provided, however, That not in excess
    of ten such vessels shall be operated and tested under the
    authority of this section in any one year. Bareboat charters
    entered into under this section shall be made at reasonable rates
    of charter and shall include such restrictions and conditions as
    the Secretary of Transportation determines to be necessary or
    appropriate to protect the public interest, including provisions
    for recapture of profits as provided for in section 1199 of this
    Appendix. Charters and general agency agreements entered into under
    this section shall be reviewed annually for the purpose of
    determining whether conditions exist which would justify
    continuance of the charter or agreement. Those provisions of law
    prescribed or incorporated under section 1241a of this Appendix,
    which relate to vessel operating activities of the Secretary of
    Transportation and to employment of seamen through general agents,
    shall be applicable in connection with charters and agreements
    entered into under this section.

-SOURCE-
    (June 29, 1936, ch. 858, title VII, Sec. 715, as added July 11,
    1956, ch. 574, 70 Stat. 531; amended Pub. L. 97-31, Sec. 12(117),
    Aug. 6, 1981, 95 Stat. 164.)

-MISC1-
                                AMENDMENTS                            
      1981 - Pub. L. 97-31 substituted "Secretary of Transportation"
    for "Secretary of Commerce" wherever appearing.

-End-

-CITE-
    46 USC APPENDIX SUBCHAPTER VIII - CONTRACT
           PROVISIONS                                      01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER VIII - CONTRACT PROVISIONS

-HEAD-
                   SUBCHAPTER VIII - CONTRACT PROVISIONS               

-End-

-CITE-
    46 USC APPENDIX Sec. 1211                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER VIII - CONTRACT PROVISIONS

-HEAD-
    Sec. 1211. Provision for books and records; filing balance sheets;
      inspection and auditing by Secretary; rescission of contract on
      failure to comply with provisions

-STATUTE-
      Every contract executed by the Secretary of Transportation under
    the provisions of subchapters VI or VII of this chapter shall
    contain provisions requiring (1) that, the contractor and every
    affiliate, domestic agent, subsidiary, or holding company connected
    with, or directly or indirectly controlling or controlled by, the
    contractor, to keep its books, records, and accounts, relating to
    the maintenance, operation, and servicing of the vessels, services,
    routes, and lines covered by the contract, in such form and under
    such regulations as may be prescribed by the Secretary of
    Transportation: Provided, That the provisions of this paragraph
    shall not require the duplication of books, records, and accounts
    required to be kept in some other form by the Interstate Commerce
    Commission; (2) that the contractor and every affiliate, domestic
    agent, subsidiary, or holding company connected with, or directly
    or indirectly controlling or controlled by, the contractor, to
    file, upon notice from the Secretary of Transportation, balance
    sheets, profit and loss statements, and such other statements of
    financial operations, special report, memoranda of any facts and
    transactions, which in the opinion of the Secretary of
    Transportation affect the financial results in, the performance of,
    or transactions or operations under, such contract; (3) that the
    Secretary of Transportation shall be authorized to examine and
    audit the books, records, and accounts of all persons referred to
    in this section whenever he may deem it necessary or desirable; and
    (4) that upon the willful failure or refusal of any person
    described in this section to comply with the contract provisions
    required by this section, the Secretary of Transportation shall
    have the right to rescind the contract, and upon such rescission,
    the United States shall be relieved of all further liability on
    such contract.

-SOURCE-
    (June 29, 1936, ch. 858, title VIII, Sec. 801, 49 Stat. 2011; Pub.
    L. 97-31, Sec. 12(119), Aug. 6, 1981, 95 Stat. 164.)

-MISC1-
                                AMENDMENTS                            
      1981 - Pub. L. 97-31 substituted "Secretary of Transportation"
    for "Commission" in six places and in cl. (3) "he may deem" for "it
    may deem". For prior transfers of functions of the Commission,
    meaning the United States Maritime Commission, see Transfer of
    Functions note below.

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      For transfer of functions of United States Maritime Commission,
    see Reorg. Plan No. 6 of 1949, Reorg. Plan No. 21 of 1950, and
    Reorg. Plan No. 7 of 1961, set out under section 1111 of this
    Appendix.

        ABOLITION OF INTERSTATE COMMERCE COMMISSION AND TRANSFER OF
                                 FUNCTIONS
      Interstate Commerce Commission abolished and functions of
    Commission transferred, except as otherwise provided in Pub. L. 104-
    88, to Surface Transportation Board effective Jan. 1, 1996, by
    section 702 of Title 49, Transportation, and section 101 of Pub. L.
    104-88, set out as a note under section 701 of Title 49. References
    to Interstate Commerce Commission deemed to refer to Surface
    Transportation Board, a member or employee of the Board, or
    Secretary of Transportation, as appropriate, see section 205 of
    Pub. L. 104-88, set out as a note under section 701 of Title 49.

-End-

-CITE-
    46 USC APPENDIX Sec. 1212                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER VIII - CONTRACT PROVISIONS

-HEAD-
    Sec. 1212. Purchase or requisition of vessels by United States;
      amount of payment

-STATUTE-
      Every contract executed by the Secretary of Transportation under
    authority of subchapter V of this chapter shall provide that - 
      In the event the United States shall, through purchase or
    requisition, acquire ownership of the vessel or vessels on which a
    construction-differential subsidy was paid, the owner shall be paid
    therefor the value thereof, but in no event shall such payment
    exceed the actual depreciated construction cost thereof (together
    with the actual depreciated cost of capital improvements thereon,
    but excluding the cost of national-defense features) less the
    depreciated amount of construction-differential subsidy theretofore
    paid incident to the construction or reconditioning of such vessel
    or vessels, or the fair and reasonable scrap value of such vessel
    as determined by the Secretary of Transportation, whichever is the
    greater. Such determination shall be final. In computing the
    depreciated value of such vessel, depreciation shall be computed on
    each vessel on the schedule adopted by the Internal Revenue Service
    for income-tax purposes.
      The foregoing provision respecting the requisition or the
    acquisition of ownership by the United States shall run with the
    title to such vessel or vessels and be binding on all owners
    thereof.

-SOURCE-
    (June 29, 1936, ch. 858, title VIII, Sec. 802, 49 Stat. 2011; June
    23, 1938, ch. 600, Sec. 33, 52 Stat. 962; Aug. 7, 1939, ch. 555,
    Sec. 2, 53 Stat. 1254; Pub. L. 97-31, Sec. 12(120), Aug. 6, 1981,
    95 Stat. 164.)

-MISC1-
                                AMENDMENTS                            
      1981 - Pub. L. 97-31 substituted "Secretary of Transportation"
    for "Commission" in two places. For prior transfers of functions of
    the Commission, meaning the United States Maritime Commission, see
    Transfer of Functions note below.
      1939 - Act Aug. 7, 1939, struck out "fair actual" after "owner
    shall be paid therefor the" in first sentence.
      1938 - Act June 23, 1938, inserted ", or the fair and reasonable
    scrap value of such vessel as determined by the Commission,
    whichever is the greater. Such determination shall be final." at
    end of first sentence, and "depreciated" after "In computing the"
    in second sentence.

-CHANGE-
                              CHANGE OF NAME                          
      The official title of the Bureau of Internal Revenue was changed
    to the Internal Revenue Service by Treas. Dept. Order 150-29, eff.
    July 9, 1953.

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      For transfer of functions of United States Maritime Commission,
    see Reorg. Plan No. 6 of 1949, Reorg. Plan No. 21 of 1950, and
    Reorg. Plan No. 7 of 1961, set out under section 1111 of this
    Appendix.

-End-

-CITE-
    46 USC APPENDIX Sec. 1213                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER VIII - CONTRACT PROVISIONS

-HEAD-
    Sec. 1213. Contracts designed equitably for all ports; minimum
      allocation of funds; report to Congress; preference to citizens
      of United States; regional offices for Maritime Administration

-STATUTE-
      (a) Contracts under this chapter shall be entered into so as to
    equitably serve, insofar as possible, the foreign-trade
    requirements of the Atlantic, Gulf, Great Lakes, and Pacific ports
    of the United States. In order to assure equitable treatment for
    each range of ports referred to in the preceding sentence, not less
    than 10 percent of the funds appropriated for construction-
    differential subsidy and operating-differential subsidy pursuant
    to this chapter or any law authorizing funds for the purposes of
    this chapter shall be allocated to each such port range: Provided,
    however, That such allocation shall apply to the extent that
    subsidy contracts are approved by the Secretary of Transportation.
    For the purposes of this section and section 1121(a) of this
    Appendix, the Secretary shall establish trade routes, services, or
    lines that take into account the seasonal closure of the Saint
    Lawrence Seaway and provide for alternate routing of ships via a
    different range of ports during that closure so as to maintain
    continuity of service on a year-round basis. For the purposes of
    section 1175(c) of this Appendix, such an alternate routing via a
    different range of ports shall be deemed to be service from Great
    Lakes ports, provided such alternative routing is based upon
    receipt or delivery of cargo at Great Lakes-Saint Lawrence Seaway
    ports under through intermodal bills of lading. The Secretary shall
    include in the annual report pursuant to section 1118 of this
    Appendix a detailed report (1) describing the actions that have
    been taken pursuant to this chapter to assure insofar as possible
    that direct and adequate service is provided by United States-flag
    commercial vessels to each range of ports referred to in this
    section; and (2) including any recommendations for additional
    legislation that may be necessary to achieve the purpose of this
    section. In awarding contracts under this chapter, preference shall
    be given to persons who are citizens of the United States and who
    have the support, financial and otherwise, of the domestic
    communities primarily interested.
      (b) There shall be established and maintained within the Maritime
    Administration such regional offices as may be necessary,
    including, but not limited to, one such office for each of the four
    port ranges specified in subsection (a) of this section. The
    Secretary of Transportation shall appoint a qualified individual to
    be the Director of each such regional office and shall carry out
    appropriate functions, activities, and programs of the Maritime
    Administration through such regional offices.

-SOURCE-
    (June 29, 1936, ch. 858, title VIII, Sec. 809, 49 Stat. 2015; Pub.
    L. 91-469, Sec. 26(a), Oct. 21, 1970, 84 Stat. 1034; Pub. L. 94-10,
    Sec. 3, Mar. 23, 1975, 89 Stat. 16; Pub. L. 94-127, Sec. 4, Nov.
    13, 1975, 89 Stat. 680; Pub. L. 96-470, title II, Sec. 201(a), Oct.
    19, 1980, 94 Stat. 2241; Pub. L. 97-31, Sec. 12(121), Aug. 6, 1981,
    95 Stat. 164; Pub. L. 97-35, title XVI, Sec. 1604, Aug. 13, 1981,
    95 Stat. 751.)

-MISC1-
                                AMENDMENTS                            
      1981 - Subsec. (a). Pub. L. 97-35 inserted provisions respecting
    the establishment of trade routes, services or lines taking into
    consideration the seasonal closure of the Saint Lawrence Seaway,
    and alternate routing of ships.
      Pub. L. 97-31 substituted "Secretary of Transportation" for
    "Secretary of Commerce".
      Subsec. (b). Pub. L. 97-31 substituted "Secretary of
    Transportation" for "Secretary of Commerce".
      1980 - Subsec. (a). Pub. L. 96-470 substituted "The Secretary
    shall include in the annual report pursuant to section 1118 of this
    Appendix" for "Not later than March 1, 1976, and annually
    thereafter, the Secretary shall submit to Congress".
      1975 - Subsec. (a). Pub. L. 94-127 required minimum allocation of
    funds for each range of ports and submission of an annual report to
    Congress.
      Pub. L. 94-10 designated existing provisions as subsec. (a) and
    added subsec. (b).
      1970 - Pub. L. 91-469 included ports on the Great Lakes.

-End-

-CITE-
    46 USC APPENDIX SUBCHAPTER VIII-A - OFFENSES AND
           PENALTIES                                       01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER VIII-A - OFFENSES AND PENALTIES

-HEAD-
                SUBCHAPTER VIII-A - OFFENSES AND PENALTIES            

-End-

-CITE-
    46 USC APPENDIX Sec. 1222                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER VIII-A - OFFENSES AND PENALTIES

-HEAD-
    Sec. 1222. Repealed. Pub. L. 108-136, div. C, title XXXV, Sec.
      3534(a)(2), Nov. 24, 2003, 117 Stat. 1818

-MISC1-
      Section, acts June 29, 1936, ch. 858, title VIII, Sec. 804, 49
    Stat. 2012; June 23, 1938, ch. 600, Sec. 35, 52 Stat. 963; Pub. L.
    91-469, Sec. 24, Oct. 21, 1970, 84 Stat. 1033; Pub. L. 96-470,
    title II, Sec. 201(b), Oct. 19, 1980, 94 Stat. 2241; Pub. L. 97-31,
    Sec. 12(121), Aug. 6, 1981, 95 Stat. 164; Pub. L. 101-225, title
    III, Sec. 307(7), Dec. 12, 1989, 103 Stat. 1925; Pub. L. 104-239,
    Sec. 5(a), Oct. 8, 1996, 110 Stat. 3131, prohibited the operation
    of a competing foreign-flag vessel.

                         EFFECTIVE DATE OF REPEAL                     
      Repeal effective Oct. 1, 2005, see section 3537(b) of Pub. L. 108-
    136, set out as an Effective Date note under section 53101 of
    Title 46, Shipping.

-End-

-CITE-
    46 USC APPENDIX Sec. 1223                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER VIII-A - OFFENSES AND PENALTIES

-HEAD-
    Sec. 1223. Forbidden practices relating to coastwise service,
      salaries, officers, and employees

-STATUTE-
    (a) Foreign trade subsidy contractor engaging in coastwise or
      intercoastal trade
      It shall be unlawful to award or pay any subsidy to any
    contractor under authority of part A of subchapter VI of this
    chapter, or to charter any vessel to any person under subchapter
    VII of this chapter if said contractor or charterer, or any holding
    company, subsidiary, affiliate, or associate of such contractor or
    charterer, or any officer, director, agent, or executive thereof,
    directly or indirectly, shall own, operate, or charter any vessel
    or vessels engaged in the domestic intercoastal or coastwise
    service, or own any pecuniary interest, directly or indirectly, in
    any person or concern that owns, charters, or operates any vessel
    or vessels in the domestic intercoastal or coastwise service,
    without the written permission of the Secretary of Transportation.
    Every person, firm, or corporation having any interest in such
    application shall be permitted to intervene and the Secretary of
    Transportation shall give a hearing to the applicant and the
    intervenors. The Secretary of Transportation shall not grant any
    such application if the Secretary of Transportation finds it will
    result in unfair competition to any person, firm, or corporation
    operating exclusively in the coastwise or intercoastal service or
    that it would be prejudicial to the objects and policy of this
    chapter: Provided, That if such contractor or other person above-
    described or a predecessor in interest was in bona-fide operation
    as a common carrier by water in the domestic, intercoastal, or
    coastwise trade in 1935 over the route or routes or in the trade or
    trades for which application is made and has so operated since that
    time or if engaged in furnishing seasonal service only, was in bona-
    fide operation in 1935 during the season ordinarily covered by its
    operation, except in either event, as to interruptions of service
    over which the applicant or its predecessor in interest had no
    control, the Secretary of Transportation shall grant such
    permission without requiring further proof that public interest and
    convenience will be served by such operation, and without further
    proceedings as to the competition in such route or trade.
      If such application be allowed, it shall be unlawful for any of
    the persons mentioned in this section to divert, directly or
    indirectly, any moneys, property, or other thing of value, used in
    foreign-trade operations, for which a subsidy is paid by the United
    States, into any such coastwise or intercoastal operations; and
    whosoever shall violate this provision shall be guilty of a
    misdemeanor.
    (b) Contractor in default paying more than specified salary
      Whenever any contractor under part A of subchapter VI of this
    chapter or subchapter VII of this chapter receiving an operating-
    differential subsidy is in default with respect to any mortgage,
    note, purchase contract, or other obligation to the Secretary of
    Transportation, or has not maintained, in a manner satisfactory to
    the Secretary of Transportation, all of the reserves provided for
    in this chapter, the Secretary of Transportation shall have the
    right to supervise the number and compensation of all officers and
    employees of the contractor.
    (c) Repealed. Pub. L. 91-469, Sec. 25, Oct. 21, 1970, 84 Stat. 1034
    (d) Employing other persons or concerns as managing or operating
      agent
      It shall be unlawful, without express written consent of the
    Secretary of Transportation, for any contractor holding a contract
    authorized under part A of subchapter VI or (!1) VII of this
    chapter to employ any other person or concern as the managing or
    operating agent of such operator, or to charter any vessel, on
    which an operating-differential subsidy is to be paid, for
    operation by another person or concern, and if such charter is
    made, the person or concern operating the chartered vessel or
    vessels shall be subject to all the terms and provisions of this
    chapter, including limitations of profits and salaries.

    (e) Repealed. Pub. L. 101-225, title III, Sec. 307(7), Dec. 12,
      1989, 103 Stat. 1925
    (f) Penalty
      Any willful violation of any provision of this section shall
    constitute a breach of the contract or charter in force under this
    chapter, and upon determining that such a violation has occurred
    the Secretary of Transportation may forthwith declare such contract
    or charter rescinded and any person willfully violating the
    provisions of this section shall be guilty of a misdemeanor.

-SOURCE-
    (June 29, 1936, ch. 858, title VIII, Sec. 805, 49 Stat. 2012; June
    23, 1938, ch. 600, Secs. 36, 37, 52 Stat. 963; July 17, 1952, ch.
    939, Sec. 20, 66 Stat. 765; Pub. L. 91-469, Sec. 25, Oct. 21, 1970,
    84 Stat. 1034; Pub. L. 91-603, Sec. 4(e), Dec. 31, 1970, 84 Stat.
    1675; Pub. L. 97-31, Sec. 12(122), Aug. 6, 1981, 95 Stat. 164; Pub.
    L. 101-225, title III, Sec. 307(7), Dec. 12, 1989, 103 Stat. 1925;
    Pub. L. 104-239, Sec. 4(b), Oct. 8, 1996, 110 Stat. 3131.)

-MISC1-
                                AMENDMENTS                            
      1996 - Subsec. (a). Pub. L. 104-239, Sec. 4(b)(1), substituted
    "part A of subchapter VI of this chapter" for "subchapter VI of
    this chapter".
      Subsecs. (b), (d). Pub. L. 104-239, Sec. 4(b)(2), substituted
    "under part A of subchapter VI" for "under subchapter VI".
      1989 - Subsec. (e). Pub. L. 101-225 struck out subsec. (e) which
    provided that it was unlawful for any contractor or charterer who
    holds any contract made under authority of this chapter to employ
    any Member of Congress, either with or without compensation, as an
    attorney, agent, officer, or director of such person.
      1981 - Pub. L. 97-31 substituted "Secretary of Transportation"
    for "Commission" wherever appearing. For prior transfers of
    functions of the Commission, meaning the United States Maritime
    Commission, see Transfer of Functions note below.
      1970 - Subsec. (c). Pub. L. 91-469 struck out restriction against
    taking into account for subsidy accounting purposes any salary for
    personal services in excess of $25,000 paid by the contractor and
    definition of terms "director", "officer", "employee", and
    "salary".
      Subsec. (d). Pub. L. 91-603 struck out provisions which
    prohibited a contractor from receiving an operating-differential
    subsidy for the operation of any chartered vessel save and except
    during a period of actual emergency determined by the Secretary, or
    except as provided in section 1198 of this Appendix.
      1952 - Subsec. (c). Act July 17, 1952, removed limitation of
    amount of salaries paid to employers, and defined director,
    officer, or employee.
      1938 - Subsec. (d). Act June 23, 1938, substituted "contractor.
    (c) No director" for "contractor (c) no director", and inserted "or
    except as provided in section 1198 of this Appendix".

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      For transfer of functions of United States Maritime Commission,
    see Reorg. Plan No. 6 of 1949, Reorg. Plan No. 21 of 1950, and
    Reorg. Plan No. 7 of 1961, set out under section 1111 of this
    Appendix.

-FOOTNOTE-
    (!1) So in original. Probably should be followed by "subchapter".

-End-

-CITE-
    46 USC APPENDIX Sec. 1226                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER VIII-A - OFFENSES AND PENALTIES

-HEAD-
    Sec. 1226. Discrimination in respect to cargo

-STATUTE-
      It shall be unlawful for any contractor receiving an operating-
    differential subsidy under subchapter VI of this chapter or for
    any charterer under subchapter VII of this chapter unjustly to
    discriminate in any manner so as to give preference directly or
    indirectly in respect to cargo in which such contractor or
    charterer has a direct or indirect ownership, or purchase or
    vending interest; and whosoever shall violate this provision shall
    be guilty of a misdemeanor.

-SOURCE-
    (June 29, 1936, ch. 858, title VIII, Sec. 808, 49 Stat. 2015.)

-End-

-CITE-
    46 USC APPENDIX Sec. 1227                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER VIII-A - OFFENSES AND PENALTIES

-HEAD-
    Sec. 1227. Agreements with other carriers forbidden; withholding
      subsidies; actions by injured persons for damages

-STATUTE-
      It shall be unlawful for any contractor receiving an operating-
    differential subsidy under subchapter VI of this chapter or for
    any charterer of vessels under subchapter VII of this chapter to
    continue as a party to or to conform to any agreement with another
    carrier or carriers by water, or to engage in any practice in
    concert with another carrier or carriers by water, which is
    unjustly discriminatory or unfair to any other citizen of the
    United States who operates a common carrier by water exclusively
    employing vessels registered under the laws of the United States on
    any established trade route from and to a United States port or
    ports.
      No payment or subsidy of any kind shall be paid directly or
    indirectly out of funds of the United States or any agency of the
    United States to any contractor or charterer who shall violate this
    section. Any person who shall be injured in his business or
    property by reason of anything forbidden by this section may sue
    therefor in any district court of the United States in which the
    defendant resides or is found or has an agent, without respect to
    the amount in controversy, and shall recover threefold the damages
    by him sustained, and the cost of suit, including a reasonable
    attorney's fee.

-SOURCE-
    (June 29, 1936, ch. 858, title VIII, Sec. 810, 49 Stat. 2015.)

-End-

-CITE-
    46 USC APPENDIX Sec. 1228                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER VIII-A - OFFENSES AND PENALTIES

-HEAD-
    Sec. 1228. Fines and penalties; conviction as rendering persons
      ineligible to receive benefits of law

-STATUTE-
      Whenever any natural person is found guilty in any district court
    of the United States of any act or acts declared in this chapter to
    constitute a misdemeanor, he shall be punished by a fine of not
    more than $10,000, or by imprisonment for not less than one year or
    more than five years, or by both fine and imprisonment. Whenever
    any corporation is found guilty of any act or acts declared in this
    chapter to be unlawful, such corporation shall be punished by a
    fine of not more than $25,000.
      In addition to the punishment prescribed in section 1224 (!1) of
    this Appendix, any person or corporation convicted of a misdemeanor
    under the provisions of this chapter shall be ineligible, at the
    discretion of the Commission or the Secretary of Transportation, to
    receive any benefits under subchapters V and VI of this chapter, or
    to receive a charter under subchapter VII of this chapter for a
    period of five years after conviction.

      Whoever knowingly and willfully violates any order, rule, or
    regulation of the Federal Maritime Commission or the Secretary of
    Transportation made or issued in the exercise of the powers,
    duties, or functions transferred to it or him or vested in it or
    him by this chapter, as amended, for which no penalty is otherwise
    expressly provided, shall upon conviction thereof be subject to a
    fine of not more than $500. If such violation is a continuing one,
    each day of such violation shall constitute a separate offense.

-SOURCE-
    (June 29, 1936, ch. 858, title VIII, Sec. 806(b)-(d), 49 Stat.
    2014; Aug. 4, 1939, ch. 417, Sec. 13, 53 Stat. 1187; Pub. L. 97-31,
    Sec. 12(125), Aug. 6, 1981, 95 Stat. 164.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 1224 of this Appendix, referred to in text, was repealed
    by Pub. L. 101-225, title III, Sec. 307(7), Dec. 12, 1989, 103
    Stat. 1925.

-COD-
                               CODIFICATION                           
      Section is comprised of subsecs. (b) to (d) of section 806 of act
    June 29, 1936. Subsec. (a) of section 806 is classified to section
    1224 of this Appendix.

-MISC1-
                                AMENDMENTS                            
      1981 - Pub. L. 97-31 substituted "Commission or the Secretary of
    Transportation" for "Commission", "Federal Maritime Commission or
    the Secretary of Transportation" for "United States Maritime
    Commission", and "it or him" for "it" in two places. For prior
    transfers of functions of the Commission, meaning the United States
    Maritime Commission, see Transfer of Functions note below.
      1939 - Act Aug. 4, 1939, added third par.

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      For transfer of functions of United States Maritime Commission,
    see Reorg. Plan No. 6 of 1949, Reorg. Plan No. 21 of 1950, and
    Reorg. Plan No. 7 of 1961, set out under section 1111 of this
    Appendix.

-FOOTNOTE-
    (!1) See References in Text note below.

-End-

-CITE-
    46 USC APPENDIX SUBCHAPTER IX - MISCELLANEOUS
           PROVISIONS                                      01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER IX - MISCELLANEOUS PROVISIONS

-HEAD-
                 SUBCHAPTER IX - MISCELLANEOUS PROVISIONS             

-End-

-CITE-
    46 USC APPENDIX Sec. 1241                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER IX - MISCELLANEOUS PROVISIONS

-HEAD-
    Sec. 1241. Transportation in American vessels of Government
      personnel and certain cargoes

-STATUTE-
    (a) Requirement that officers and employees travel on American
      ships
      Any officer or employee of the United States traveling on
    official business overseas or to or from any of the possessions of
    the United States shall travel and transport his personal effects
    on ships registered under the laws of the United States where such
    ships are available unless the necessity of his mission requires
    the use of a ship under a foreign flag. The Administrator of
    General Services shall prescribe regulations under which agencies
    shall not pay for or reimburse officers or employees for travel or
    shipping expenses incurred on a foreign ship in the absence of
    satisfactory proof of the necessity therefor.
    (b) Cargoes procured, furnished or financed by United States;
      waiver in emergencies; exceptions; definition
      (1) Whenever the United States shall procure, contract for, or
    otherwise obtain for its own account, or shall furnish to or for
    the account of any foreign nation without provision for
    reimbursement, any equipment, materials, or commodities, within or
    without the United States, or shall advance funds or credits or
    guarantee the convertibility of foreign currencies in connection
    with the furnishing of such equipment, materials, or commodities,
    the appropriate agency or agencies shall take such steps as may be
    necessary and practicable to assure that at least 50 per centum of
    the gross tonnage of such equipment, materials or commodities
    (computed separately for dry bulk carriers, dry cargo liners, and
    tankers), which may be transported on ocean vessels shall be
    transported on privately owned United States-flag commercial
    vessels, to the extent such vessels are available at fair and
    reasonable rates for United States-flag commercial vessels, in such
    manner as will insure a fair and reasonable participation of United
    States-flag commercial vessels in such cargoes by geographic areas:
    Provided, That the provisions of this subsection may be waived
    whenever the Congress by concurrent resolution or otherwise, or the
    President of the United States or the Secretary of Defense declares
    that an emergency exists justifying a temporary waiver of the
    provisions of this paragraph and so notifies the appropriate agency
    or agencies: And provided further, That the provisions of this
    subsection shall not apply to cargoes carried in the vessels of the
    Panama Canal Company. Nothing herein shall repeal or otherwise
    modify the provisions of section 1241-1 of this Appendix. For
    purposes of this section, the term "privately owned United States-
    flag commercial vessels" shall not be deemed to include any vessel
    which, subsequent to September 21, 1961, shall have been either (a)
    built outside the United States, (b) rebuilt outside the United
    States, or (c) documented under any foreign registry, until such
    vessel shall have been documented under the laws of the United
    States for a period of three years: Provided, however, That the
    provisions of this amendment shall not apply where, (1) prior to
    September 21, 1961, the owner of a vessel, or contractor for the
    purchase of a vessel, originally constructed in the United States
    and rebuilt abroad or contracted to be rebuilt abroad, has notified
    the Maritime Administration in writing of its intent to document
    such vessel under United States registry, and such vessel is so
    documented on its first arrival at a United States port not later
    than one year subsequent to September 21, 1961, or (2) where prior
    to September 21, 1961, the owner of a vessel under United States
    registry has made a contract for the rebuilding abroad of such
    vessel and has notified the Maritime Administration of such
    contract, and such rebuilding is completed and such vessel is
    thereafter documented under United States registry on its first
    arrival at a United States port not later than one year subsequent
    to September 21, 1961.
      (2) Every department or agency having responsibility under this
    subsection shall administer its programs with respect to this
    subsection under regulations issued by the Secretary of
    Transportation. The Secretary of Transportation shall review such
    administration and shall annually report to the Congress with
    respect thereto.
    (c) Motor vehicle owned by Government personnel
      Notwithstanding any other provision of law, privately owned
    American shipping services may be utilized for the transportation
    of motor vehicles owned by Government personnel whenever
    transportation of such vehicles at Government expense is otherwise
    authorized by law.

-SOURCE-
    (June 29, 1936, ch. 858, title IX, Sec. 901, 49 Stat. 2015; Aug.
    26, 1954, ch. 936, 68 Stat. 832; May 28, 1956, ch. 325, 70 Stat.
    187; Pub. L. 87-266, Sept. 21, 1961, 75 Stat. 565; Pub. L. 91-469,
    Sec. 27, Oct. 21, 1970, 84 Stat. 1034; Pub. L. 97-31, Sec. 12(126),
    Aug. 6, 1981, 95 Stat. 165; Pub. L. 104-316, title I, Sec. 125,
    Oct. 19, 1996, 110 Stat. 3839.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Panama Canal Company, referred to in subsec. (b)(1), deemed to
    refer to Panama Canal Commission, see section 3602(b)(5) of Title
    22, Foreign Relations and Intercourse.
      This amendment, referred to in subsec. (b)(1), means the
    amendment to this section by Pub. L. 87-266. See 1961 Amendment
    note below.

-MISC1-
                                AMENDMENTS                            
      1996 - Subsec. (a). Pub. L. 104-316 substituted "flag. The
    Administrator of General Services shall prescribe regulations under
    which agencies" for "flag: Provided, That the Comptroller General
    of the United States" and substituted "pay for or reimburse
    officers or employees" for "credit any allowance".
      1981 - Subsec. (b)(2). Pub. L. 97-31 substituted "Secretary of
    Transportation" for "Secretary of Commerce" in two places.
      1970 - Subsec. (b). Pub. L. 91-469 redesignated subsec. (b) as
    (b)(1), substituted "this paragraph" for "this subsection" after
    "temporary waiver of the provisions of" therein, and added subsec.
    (b)(2).
      1961 - Subsec. (b). Pub. L. 87-266 excluded from term "privately
    owned United States-flag commercial vehicles" those vessels which,
    subsequent to Sept. 21, 1961, have been either built outside the
    United States, rebuilt outside the United States, or documented
    under foreign registry, until such vessels have been documented
    under the laws of the United States for 3 years.
      1956 - Subsec. (c). Act May 28, 1956, added subsec. (c).
      1954 - Act Aug. 26, 1954, designated existing provisions as
    subsec. (a) and added subsec. (b).

                                EXEMPTIONS                            
      Export sales of certain agricultural commodities, see section
    1707a of Title 7, Agriculture.
      Functions authorized by Foreign Assistance Act of 1961, as
    amended, as exempt, see Ex. Ord. No. 11223, eff. May 12, 1965, 30
    F.R. 6635, set out under section 2393 of Title 22, Foreign
    Relations and Intercourse.
      Act Aug. 3, 1956, ch. 933, Sec. 3, 70 Stat. 988, provided that
    sales of fresh fruit and the products thereof under sections 1701
    to 1709 of Title 7, Agriculture, should be exempt from the
    requirements of this section.

-End-

-CITE-
    46 USC APPENDIX Sec. 1241-1                                 01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER IX - MISCELLANEOUS PROVISIONS

-HEAD-
    Sec. 1241-1. Shipment of exports financed by Government in United
      States vessels

-STATUTE-
      It is the sense of Congress that in any loans made by any
    instrumentality of the Government to foster the exporting of
    agricultural or other products, provision shall be made that such
    products shall be carried exclusively in vessels of the United
    States, unless, as to any or all of such products, the Secretary of
    Transportation, after investigation, shall certify to the
    instrumentality of the Government that vessels of the United States
    are not available in sufficient numbers, or in sufficient tonnage
    capacity, or on necessary sailing schedule, or at reasonable rates.

-SOURCE-
    (Mar. 26, 1934, ch. 90, 48 Stat. 500; June 29, 1936, ch. 858, Sec.
    204, 49 Stat. 1987; 1957 Reorg. Plan No. 1, eff. June 30, 1957, 22
    F.R. 4633, 71 Stat. 647; Pub. L. 97-31, Sec. 12(127), Aug. 6, 1981,
    95 Stat. 165.)

-COD-
                               CODIFICATION                           
      Provisions of this section reading "any loans made by any
    instrumentality of the Government" and "shall certify to the
    instrumentality of the Government" were substituted for "any loans
    made by the Reconstruction Finance Corporation or any other
    instrumentality of the Government" and "shall certify to the
    Reconstruction Finance Corporation or any other instrumentality of
    the Government" in view of the abolition of the Reconstruction
    Finance Corporation and transfer of its remaining functions to
    Housing and Home Finance Agency, Administrator of General Services,
    Administrator of Small Business Administration, and Secretary of
    the Treasury pursuant to Reorg. Plan No. 1 of 1957, set out in
    Appendix of Title 5, Government Organization and Employees.
      Section was not enacted as part of the Merchant Marine Act, 1936,
    which comprises this chapter.
      Section was formerly classified to section 616a of Title 15,
    Commerce and Trade.

-MISC1-
                                AMENDMENTS                            
      1981 - Pub. L. 97-31 substituted "Secretary of Transportation"
    for "Commission". For prior transfers of functions of the
    Commission, meaning the United States Maritime Commission, see
    Transfer of Functions note below.

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      Functions of Shipping Board Bureau assumed by United States
    Maritime Commission on Oct. 26, 1936, under provisions of act June
    29, 1936, set out as section 1114 of this Appendix. For subsequent
    transfers of functions, see Reorg. Plan No. 6 of 1949, Reorg. Plan
    No. 21 of 1950, and Reorg. Plan No. 7 of 1961, set out under
    section 1111 of this Appendix.

-MISC2-
                                EXEMPTIONS                            
      Export sales of certain agricultural commodities, see section
    1707a of Title 7, Agriculture.
      Functions authorized by Foreign Assistance Act of 1961, as
    amended, as exempt, see Ex. Ord. No. 11223, eff. May 12, 1965, 30
    F.R. 6635, set out under section 2393 of Title 22, Foreign
    Relations and Intercourse.
      Act Aug. 3, 1956, ch. 933, Sec. 3, 70 Stat. 988, provided that
    sales of fresh fruit and the products thereof under sections 1701
    to 1709 of Title 7, Agriculture, should be exempt from the
    requirements of this section.
      Section not affected by other requirements regarding
    transportation of certain cargoes in American vessels, see section
    1241 of this Appendix.

-End-

-CITE-
    46 USC APPENDIX Sec. 1241a                                  01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER IX - MISCELLANEOUS PROVISIONS

-HEAD-
    Sec. 1241a. Vessel operations revolving fund; establishment; uses;
      limitation

-STATUTE-
      There is established a working capital of $20,000,000 to remain
    available until expended, for the "Vessel Operations Revolving
    Fund", which is created for the purpose of carrying out vessel
    operating functions of the Secretary of Transportation, including
    charter, operation, maintenance, repair, reconditioning, and
    betterment of merchant vessels under the jurisdiction of the
    Secretary of Transportation.
      Notwithstanding any other provision of law, rates for shipping
    services rendered under said Fund shall be prescribed by the
    Secretary of Transportation and the Fund shall be credited with all
    receipts from vessel operating activities conducted thereunder:
    Provided, That the provisions of sections 1291(a), (c), 1293(c),
    and 1294 of Appendix to title 50 shall be applicable in connection
    with such operations and to seamen employed through general agents
    as employees of the United States, who may be employed in
    accordance with customary commercial practices in the maritime
    industry, notwithstanding the provisions of any law applicable in
    terms to the employment of persons by the United States: Provided
    further, That such sums as may be determined to be necessary by the
    Secretary of Transportation, with the approval of the Office of
    Management and Budget, but not exceeding 2 per centum of vessel
    operating expenses, may be advanced from this Fund to the
    appropriation "Salaries and expenses" for the purposes of that
    appropriation in connection with vessel operating functions, but
    without regard to the limitations on amounts as stated therein:
    Provided further, That notwithstanding any other provisions of law,
    the unexpended balances of any working funds or of allocation
    accounts established, subsequent to January 1, 1951, for the
    activities provided for under this appropriation, together with
    receipts heretofore and hereafter received from such activities,
    may be transferred to and consolidated with this Fund, which shall
    be available for the purposes of such working funds or allocation
    accounts.
      No money made available to the Department of Transportation, for
    Maritime Activities, by this section or any other Act shall be used
    in payment for a vessel the title to which is acquired by the
    Government either by requisition or purchase, or the use of which
    is taken either by requisition or agreement, or which is insured by
    the Government and lost while so insured, unless the price or hire
    to be paid therefor, (except in cases where section 1212 of this
    Appendix is applicable) is computed in accordance with subsection
    (a) of section 1242 of this Appendix, as that subsection is
    interpreted by the Government Accountability Office.

-SOURCE-
    (June 2, 1951, ch. 121, Ch. VIII, 65 Stat. 59; 1970 Reorg. Plan No.
    2, Sec. 102, eff. July 1, 1970, 35 F.R. 7959, 84 Stat. 2085; Pub.
    L. 97-31, Sec. 12(128), Aug. 6, 1981, 95 Stat. 165; Pub. L. 108-
    271, Sec. 8(b), July 7, 2004, 118 Stat. 814.)

-COD-
                               CODIFICATION                           
      Section was not enacted as part of the Merchant Marine Act, 1936,
    which comprises this chapter.

-MISC1-
                                AMENDMENTS                            
      2004 - Pub. L. 108-271 substituted "Government Accountability
    Office" for "General Accounting Office" in last par.
      1981 - Pub. L. 97-31 substituted "Secretary of Transportation"
    for "Secretary of Commerce" in four places and "Department of
    Transportation" for "Department of Commerce".

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      Functions vested by law (including reorganization plan) in Bureau
    of Budget or Director of Bureau of the Budget transferred to
    President of United States by section 101 of Reorg. Plan No. 2 of
    1970, eff. July 1, 1970, 35 F.R. 7959, 84 Stat. 2085, set out in
    the Appendix to Title 5, Government Organization and Employees.
    Section 102 of Reorg. Plan No. 2 of 1970, redesignated Bureau of
    the Budget as Office of Management and Budget.

-MISC2-
                  AUTHORIZATION FOR PAYMENTS OUT OF FUND              
      Pub. L. 85-721, Aug. 21, 1958, 72 Stat. 710, as authorizing
    Secretary of Commerce to make certain payments out of Vessels
    Operations Revolving Fund to persons to whom he chartered vessel,
    see note set out under section 1738 of Appendix to Title 50, War
    and National Defense.

-End-

-CITE-
    46 USC APPENDIX Sec. 1241b                                  01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER IX - MISCELLANEOUS PROVISIONS

-HEAD-
    Sec. 1241b. Availability of vessel operations revolving fund;
      vessels involved in mortgage-foreclosure or forfeiture
      proceedings; redelivery and layup of chartered ships; custody and
      husbanding of Government-owned ships

-STATUTE-
      On and after June 20, 1956, the vessel operations revolving fund
    shall be available for necessary expenses incurred, in connection
    with protection, preservation, maintenance, acquisition, or use of
    vessels involved in mortgage-foreclosure or forfeiture proceedings
    instituted by the United States, including payment of prior claims
    and liens, expenses of sale, or other charges incident thereto; for
    necessary expenses incident to the redelivery and lay-up, in the
    United States, of ships now chartered under agreements which do not
    call for their return to the United States; for activation, repair
    and deactivation of merchant ships chartered for limited emergency
    purposes during the fiscal year 1957 under the jurisdiction of the
    Secretary of Transportation; and for payment of expenses of custody
    and husbanding of Government-owned ships other than those within
    reserve fleets.

-SOURCE-
    (June 20, 1956, ch. 415, title I, Sec. 101, 70 Stat. 319; Pub. L.
    97-31, Sec. 12(129), Aug. 6, 1981, 95 Stat. 165.)

-COD-
                               CODIFICATION                           
      Section was not enacted as part of the Merchant Act, 1936, which
    comprises this chapter.

-MISC1-
                                AMENDMENTS                            
      1981 - Pub. L. 97-31 substituted "Secretary of Transportation"
    for "Secretary of Commerce".

                             PRIOR PROVISIONS                         
      Provisions similar to those in this section were contained in the
    appropriation act of June 30, 1955, ch. 253, title I, Sec. 101, 69
    Stat. 231, as amended by act May 19, 1956, ch. 313, Ch. II, Sec.
    201, 70 Stat. 162.

                 LIMITATION ON FUNDS FOR FISCAL YEAR 1957             
      Act June 20, 1956, ch. 415, title I, Sec. 101, 70 Stat. 319,
    provided in part that not to exceed $5,000,000 of the funds of the
    vessel operations revolving fund were to be used in fiscal year
    1957 for the purposes set forth in this section.
      Similar provisions on limitation on funds were contained in act
    June 30, 1955, ch. 253, title I, Sec. 101, 69 Stat. 231.

-End-

-CITE-
    46 USC APPENDIX Sec. 1241c                                  01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER IX - MISCELLANEOUS PROVISIONS

-HEAD-
    Sec. 1241c. Expenses for activation, repair and deactivation of
      merchant ships; receipts

-STATUTE-
      The vessel operations revolving fund created by section 1241a of
    this Appendix, shall, beginning July 1, 1956, be available for
    expenses incurred in connection with the activation, repair, and
    deactivation of merchant ships chartered under the jurisdiction of
    the Secretary of Transportation. There shall be credited to such
    fund all receipts on account of operations after July 1, 1956,
    under charters of Government-owned ships under the jurisdiction of
    the Secretary of Transportation.

-SOURCE-
    (Aug. 1, 1956, ch. 846, 70 Stat. 897; Pub. L. 97-31, Sec. 12(130),
    Aug. 6, 1981, 95 Stat. 165.)

-COD-
                               CODIFICATION                           
      Section was not enacted as part of the Merchant Act, 1936, which
    comprises this chapter.

-MISC1-
                                AMENDMENTS                            
      1981 - Pub. L. 97-31 substituted "Secretary of Transportation"
    for "Secretary of Commerce" in two places.

-End-

-CITE-
    46 USC APPENDIX Sec. 1241d                                  01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER IX - MISCELLANEOUS PROVISIONS

-HEAD-
    Sec. 1241d. Findings and declarations with respect to export
      transportation of agricultural commodities

-STATUTE-
      (a) The Congress finds and declares - 
        (1) that a productive and healthy agricultural industry and a
      strong and active United States maritime industry are vitally
      important to the economic well-being and national security
      objectives of our Nation;
        (2) that both industries must compete in international markets
      increasingly dominated by foreign trade barriers and the
      subsidization practices of foreign governments; and
        (3) that increased agricultural exports and the utilization of
      United States merchant vessels contribute positively to the
      United States balance of trade and generate employment
      opportunities in the United States.

      (b) It is therefore declared to be the purpose and policy of the
    Congress in sections 1241d to 1241p of this Appendix - 
        (1) to enable the Department of Agriculture to plan its export
      programs effectively, by clarifying the ocean transportation
      requirements applicable to such programs;
        (2) to take immediate and positive steps to promote the growth
      of the cargo carrying capacity of the United States merchant
      marine;
        (3) to expand international trade in United States agricultural
      commodities and products and to develop, maintain, and expand
      markets for United States agricultural exports;
        (4) to improve the efficiency of administration of both the
      commodity purchasing and selling and the ocean transportation
      activities associated with export programs sponsored by the
      Department of Agriculture;
        (5) to stimulate and promote both the agricultural and maritime
      industries of the United States and encourage cooperative efforts
      by both industries to address their common problems; and
        (6) to provide in this chapter for the appropriate disposition
      of these findings and purposes.

-SOURCE-
    (Pub. L. 99-198, title XI, Sec. 1141, Dec. 23, 1985, 99 Stat.
    1490.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Sections 1241d to 1241p of this Appendix, referred to in subsec.
    (b), was in the original "this subtitle", meaning subtitle C (Secs.
    1141-1143) of title XI of Pub. L. 99-198, Dec. 23, 1985, 99 Stat.
    1490, which enacted sections 1241d to 1241p of this Appendix.

-COD-
                               CODIFICATION                           
      Section was enacted as part of the Food Security Act of 1985, and
    not as part of the Merchant Marine Act, 1936, which comprises this
    chapter.

-End-

-CITE-
    46 USC APPENDIX Sec. 1241e                                  01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER IX - MISCELLANEOUS PROVISIONS

-HEAD-
    Sec. 1241e. Exemption of certain agricultural exports from
      requirements of cargo preference laws

-STATUTE-
      The requirements of sections 1241(b)(1) and 1241-1 of this
    Appendix, shall not apply to any export activities of the Secretary
    of Agriculture or the Commodity Credit Corporation - 
        (1) under which agricultural commodities or the products
      thereof acquired by the Commodity Credit Corporation are made
      available to United States exporters, users, processors, or
      foreign purchasers for the purpose of developing, maintaining, or
      expanding export markets for United States agricultural
      commodities or the products thereof at prevailing world market
      prices;
        (2) under which payments are made available to United States
      exporters, users, or processors or, except as provided in section
      1241f of this Appendix, cash grants are made available to foreign
      purchasers, for the purpose described in paragraph (1);
        (3) under which commercial credit guarantees are blended with
      direct credits from the Commodity Credit Corporation to reduce
      the effective rate of interest on export sales of United States
      agricultural commodities or the products thereof;
        (4) under which credit or credit guarantees for not to exceed 3
      years are extended by the Commodity Credit Corporation to finance
      or guarantee export sales of United States agricultural
      commodities or the products thereof; or
        (5) under which agricultural commodities or the products
      thereof owned or controlled by or under loan from the Commodity
      Credit Corporation are exchanged or bartered for materials,
      goods, equipment, or services, but only if such materials, goods,
      equipment, or services are of a value at least equivalent to the
      value of the agricultural commodities or products exchanged or
      bartered therefor (determined on the basis of prevailing world
      market prices at the time of the exchange or barter), but nothing
      in this subsection shall be construed to exempt from the cargo
      preference provisions referred to in section 1241f of this
      Appendix any requirement otherwise applicable to the materials,
      goods, equipment, or services imported under any such
      transaction.

-SOURCE-
    (June 29, 1936, ch. 858, title IX, Sec. 901a, as added Pub. L. 99-
    198, title XI, Sec. 1142, Dec. 23, 1985, 99 Stat. 1490.)

-End-

-CITE-
    46 USC APPENDIX Sec. 1241f                                  01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER IX - MISCELLANEOUS PROVISIONS

-HEAD-
    Sec. 1241f. Shipment requirements for certain exports sponsored by
      Department of Agriculture

-STATUTE-
    (a) Minimum requirement respecting gross tonnage transported in
      United States-flag commercial vessels; implementation
      (1) In addition to the requirement for United States-flag
    carriage of a percentage of gross tonnage imposed by section
    1241(b)(1) of this Appendix, 25 percent of the gross tonnage of
    agricultural commodities or the products thereof specified in
    subsection (b) of this section shall be transported on United
    States-flag commercial vessels.
      (2) In order to achieve an orderly and efficient implementation
    of the requirement of paragraph (1) - 
        (A) an additional quantity equal to 10 percent of the gross
      tonnage referred to in paragraph (1) shall be transported in
      United States-flag vessels in calendar year 1986;
        (B) an additional quantity equal to 20 percent of the gross
      tonnage shall be transported in such vessels in calendar year
      1987; and
        (C) an additional quantity equal to 25 percent of the gross
      tonnage shall be transported in such vessels in calendar year
      1988 and in each calendar year thereafter.
    (b) Covered export activity
      This section shall apply to any export activity of the Commodity
    Credit Corporation or the Secretary of Agriculture - 
        (1) carried out under the Agricultural Trade Development and
      Assistance Act of 1954 (7 U.S.C. 1691 et seq.);
        (2) carried out under section 416 of the Agricultural Act of
      1949 (7 U.S.C. 1431);
        (3) carried out under the Bill Emerson Humanitarian Trust Act
      [7 U.S.C. 1736f-1];
        (4) under which agricultural commodities or the products
      thereof are - 
          (A) donated through foreign governments or agencies, private
        or public, including intergovernmental organizations; or
          (B) sold for foreign currencies or for dollars on credit
        terms of more than ten years;

        (5) under which agricultural commodities or the products
      thereof are made available for emergency food relief at less than
      prevailing world market prices;
        (6) under which a cash grant is made directly or through an
      intermediary to a foreign purchaser for the purpose of enabling
      the purchaser to obtain United States agricultural commodities or
      the products thereof in an amount greater than the difference
      between the prevailing world market price and the United States
      market price, free along side vessel at United States port; or
        (7) under which agricultural commodities owned or controlled by
      or under loan from the Commodity Credit Corporation are exchanged
      or bartered for materials, goods, equipment, or services produced
      in foreign countries, other than export activities described in
      section 1241e(5) of this Appendix.
    (c) Terms and conditions
      (1) The requirement for United States-flag transportation imposed
    by subsection (a) of this section shall be subject to the same
    terms and conditions as provided in section 1241(b) of this
    Appendix.
      (2) In order to provide for effective and equitable
    administration of the cargo preference laws the calendar year for
    the purpose of compliance with minimum percentage requirements
    shall be for 12 month periods commencing April 1, 1986, the 18-
    month period beginning April 1, 2002, and the 12-month period
    beginning October 1, 2003, and each year thereafter.
      (3)(A) Subject to subparagraph (B), in administering sections
    1241(b) and 1241f of this Appendix, and, subject to subparagraph
    (B) of this paragraph, consistent with those sections, the
    Commodity Credit Corporation shall take such steps as may be
    necessary and practicable without detriment to any port range to
    allocate, on the principle of lowest landed cost without regard to
    the country of documentation of the vessel, 25 percent of the
    bagged, processed, or fortified commodities furnished pursuant to
    title II of the Agricultural Trade Development and Assistance Act
    of 1954 [7 U.S.C. 1721 et seq.].
      (B) In carrying out this paragraph, there shall first be
    calculated the allocation of 100 percent of the quantity to be
    procured on an overall lowest landed cost basis without regard to
    the country of documentation of the vessel and there shall be
    allocated to the Great Lakes port range any cargoes for which it
    has the lowest landed cost under that calculation. The requirements
    for United States-flag transportation under section 1241(b) of this
    Appendix and this section shall not apply to commodities allocated
    under subparagraph (A) to the Great Lakes port range, and
    commodities allocated under subparagraph (A) to that port range may
    not be reallocated or diverted to another port range to meet those
    requirements to the extent that the total tonnage of commodities to
    which subparagraph (A) applies that is furnished and transported
    from the Great Lakes port range is less than 25 percent of the
    total annual tonnage of such commodities furnished.
      (C) In awarding any contract for the transportation by vessel of
    commodities from the Great Lakes port range pursuant to an export
    activity referred to in subsection (b) of this section, each agency
    or instrumentality - 
        (i) shall consider expressions of freight interest for any
      vessel from a vessel operator who meets reasonable requirements
      for financial and operational integrity; and
        (ii) may not deny award of the contract to a person based on
      the type of vessel on which the transportation would be provided
      (including on the basis that the transportation would not be
      provided on a liner vessel (as that term is used in the Shipping
      Act of 1984 [46 App. U.S.C. 1701 et seq.], as in effect on
      November 14, 1995)), if the person otherwise satisfies reasonable
      requirements for financial and operational integrity.

      (4) Any determination of nonavailability of United States-flag
    vessels resulting from the application of this subsection shall not
    reduce the gross tonnage of commodities required by sections
    1241(b) and 1241f of this Appendix to be transported on United
    States-flag vessels.
    (d) "Export activity" defined
      As used in subsection (b) of this section, the term "export
    activity" does not include inspection or weighing activities, other
    activities carried out for health or safety purposes, or technical
    assistance provided in the handling of commercial transactions.
    (e) Prevailing world market price
      (1) The prevailing world market price as to agricultural
    commodities or the products thereof shall be determined under
    sections 1241e through 1241h of this Appendix in accordance with
    procedures established by the Secretary of Agriculture. The
    Secretary shall prescribe such procedures by regulation, with
    notice and opportunity for public comment, pursuant to section 553
    of title 5.
      (2) In the event that a determination of the prevailing world
    market price of any other type of materials, goods, equipment, or
    service is required in order to determine whether a barter or
    exchange transaction is subject to subsection (b)(6) or (b)(7) of
    this section, such determination shall be made by the Secretary of
    Agriculture in consultation with the heads of other appropriate
    Federal agencies.

-SOURCE-
    (June 29, 1936, ch. 858, title IX, Sec. 901b, as added Pub. L. 99-
    198, title XI, Sec. 1142, Dec. 23, 1985, 99 Stat. 1491; amended
    Pub. L. 101-624, title XV, Sec. 1525, Nov. 28, 1990, 104 Stat.
    3667; Pub. L. 104-239, Sec. 17, Oct. 8, 1996, 110 Stat. 3138; Pub.
    L. 105-385, title II, Sec. 212(b)(5), Nov. 13, 1998, 112 Stat.
    3467; Pub. L. 108-136, div. C, title XXXV, Sec. 3514, Nov. 24,
    2003, 117 Stat. 1792.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Agricultural Trade Development and Assistance Act of 1954,
    referred to in subsecs. (b)(1) and (c)(3)(A), is act July 10, 1954,
    ch. 469, 68 Stat. 454, as amended, which is classified generally to
    chapter 41 (Sec. 1691 et seq.) of Title 7, Agriculture. Title II of
    the Act is classified generally to subchapter III (Sec. 1721 et
    seq.) of chapter 41 of Title 7. For complete classification of this
    Act to the Code, see Short Title note set out under section 1691 of
    Title 7 and Tables.
      The cargo preference laws, referred to in subsec. (c)(2), include
    act Mar. 26, 1934, ch. 90, 48 Stat. 500, and act Aug. 26, 1954, ch.
    936, 68 Stat. 832, which are classified to sections 1241-1 and
    1241, respectively, of this Appendix.
      The Shipping Act of 1984, referred to in subsec. (c)(3)(C)(ii),
    is Pub. L. 98-237, Mar. 20, 1984, 98 Stat. 67, as amended, which is
    classified principally to chapter 36 (Sec. 1701 et seq.) of this
    Appendix. For complete classification of this Act to the Code, see
    Short Title note set out under section 1701 of this Appendix and
    Tables.

-MISC1-
                                AMENDMENTS                            
      2003 - Subsec. (c)(2). Pub. L. 108-136 substituted "1986, the 18-
    month period beginning April 1, 2002, and the 12-month period
    beginning October 1, 2003, and each year thereafter" for "1986".
      1998 - Subsec. (b)(3). Pub. L. 105-385 substituted "Bill Emerson
    Humanitarian Trust Act" for "Food Security Wheat Reserve Act of
    1980 (7 U.S.C. 1736f-1)".
      1996 - Subsec. (c)(3)(A). Pub. L. 104-239, Sec. 17(a)(1),
    substituted "and, subject to subparagraph (B) of this paragraph,
    consistent with those sections," for "and consistent with those
    sections," and "25 percent" for "50 percent".
      Subsec. (c)(3)(B), (C). Pub. L. 104-239, Sec. 17(a)(2), added
    subpars. (B) and (C) and struck out former subpar. (B) which read
    as follows: "In carrying out this paragraph, the Commodity Credit
    Corporation shall not allocate to the Great Lakes port range in any
    year a percentage share of commodities referred to in subparagraph
    (A) that is greater than the share experienced by that port range
    in 1984, as determined by the Secretary of Agriculture."
      Subsec. (c)(4), (5). Pub. L. 104-239, Sec. 17(b), redesignated
    par. (5) as (4) and struck out former par. (4) which read as
    follows: "Amounts of cargo allocated to ports in the Great Lakes
    port range pursuant to paragraph (3) shall not be exported from a
    different port range except as necessary to meet United States-flag
    transportation requirements of sections 1241(b) and 1241f of this
    Appendix, in which case within the same year the Commodity Credit
    Corporation shall take such steps as are necessary and practicable
    without detriment to any port range to ensure the export from the
    Great Lakes port range of an amount of tonnage of commodities
    referred to in paragraph (3)(A) that is not required to be
    transported on United States-flag vessels, that is equal to the
    amount of tonnage diverted for export from other port ranges."
      1990 - Subsec. (c)(2). Pub. L. 101-624, Sec. 1525(1), (2), struck
    out "(A)" before "In order to provide" and struck out subpar. (B)
    which read as follows: "In addition, the Secretary of
    Transportation, in administering this subsection and section
    1241(b) of this Appendix, and consistent with these sections, shall
    take such steps as may be necessary and practicable without
    detriment to any port range to preserve during calendar years 1986,
    1987, 1988, and 1989 the percentage share, or metric tonnage of
    bagged, processed, or fortified commodities, whichever is lower,
    experienced in calendar year 1984 as determined by the Secretary of
    Agriculture, of waterborne cargoes exported from Great Lake ports
    pursuant to title II of the Agricultural Trade Development and
    Assistance Act of 1954 (7 U.S.C. 1721 et seq.)."
      Subsec. (c)(3) to (5). Pub. L. 101-624, Sec. 1525(3), added pars.
    (3) to (5).

-End-

-CITE-
    46 USC APPENDIX Sec. 1241g                                  01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER IX - MISCELLANEOUS PROVISIONS

-HEAD-
    Sec. 1241g. Minimum tonnage

-STATUTE-
      (a)(1) For fiscal year 1986 and each fiscal year thereafter, the
    minimum quantity of agricultural commodities to be exported under
    programs subject to section 1241f of this Appendix shall be the
    average of the tonnage exported under such programs during the base
    period defined in subsection (b) of this section, discarding the
    high and low years.
      (2) The President may waive the minimum quantity for any fiscal
    year required under paragraph (1) if he determines and reports to
    the Congress, together with his reasons, that such quantity cannot
    be effectively used for the purposes of such programs or, based on
    a certification by the Secretary of Agriculture, that the
    commodities are not available for reasons which include the
    unavailability of funds.
      (b) The base period utilized for computing the minimum tonnage
    quantity referred to in subsection (a) of this section for any
    fiscal year shall be the five fiscal years beginning with the sixth
    fiscal year preceding such fiscal year and ending with the second
    fiscal year preceding such fiscal year.

-SOURCE-
    (June 29, 1936, ch. 858, title IX, Sec. 901c, as added Pub. L. 99-
    198, title XI, Sec. 1142, Dec. 23, 1985, 99 Stat. 1493.)

-End-

-CITE-
    46 USC APPENDIX Sec. 1241h                                  01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER IX - MISCELLANEOUS PROVISIONS

-HEAD-
    Sec. 1241h. Financing of shipment of agricultural commodities in
      United States-flag vessels

-STATUTE-
    (a) Financing by Secretary of Transportation of increased ocean
      freight charges
      The Secretary of Transportation shall finance any increased ocean
    freight charges incurred in any fiscal year which result from the
    application of section 1241f of this Appendix.
    (b) Reimbursement of Secretary of Agriculture and Commodity Credit
      Corporation; computations
      If in any fiscal year the total cost of ocean freight and ocean
    freight differential for which obligations are incurred by the
    Department of Agriculture and the Commodity Credit Corporation on
    exports of agricultural commodities and products thereof under the
    agricultural export programs specified in section 1241f(b) of this
    Appendix exceeds 20 percent of the value of such commodities and
    products and the cost of such ocean freight and ocean freight
    differential on which obligations are incurred by such Department
    and Corporation during such year, the Secretary of Transportation
    shall reimburse the Department of Agriculture and the Commodity
    Credit Corporation for the amount of such excess. For the purpose
    of this subsection, commodities shipped from the inventory of the
    Commodity Credit Corporation shall be valued as provided in section
    1733(b) (!1) of title 7.

    (c) Issuance, etc., of obligations for financing
      For the purpose of meeting those expenses required to be assumed
    under subsections (a) and (b) of this section, the Secretary of
    Transportation shall issue to the Secretary of the Treasury such
    obligations in such forms and denominations, bearing such
    maturities and subject to such terms and conditions, as may be
    prescribed by the Secretary of Transportation with the approval of
    the Secretary of the Treasury. Such obligations shall be at a rate
    of interest as determined by the Secretary of the Treasury, taking
    into consideration the average market yield on outstanding
    marketable obligations of the United States with remaining periods
    of maturity comparable to the average maturities of such
    obligations during the month preceding the issuance of such
    obligations of the Secretary of Transportation. The Secretary of
    the Treasury shall purchase any obligations of the Secretary of
    Transportation issued under this subsection and, for the purpose of
    purchasing such obligations, the Secretary of the Treasury may use
    as a public debt transaction the proceeds from the sale of any
    securities issued under chapter 31 of title 31 after December 23,
    1985, and the purposes for which securities may be issued under
    such chapter are extended to include any purchases of the
    obligations of the Secretary of Transportation under this
    subsection. All redemptions and purchases by the Secretary of the
    Treasury of the obligations of the Secretary of Transportation
    shall be treated as public-debt transactions of the United States.
    (d) Authorization of appropriations
      There is authorized to be appropriated annually for each fiscal
    year, commencing with the fiscal year beginning October 1, 1986, an
    amount sufficient to reimburse the Secretary of Transportation for
    the costs, including administrative expenses and the principal and
    interest due on the obligations to the Secretary of the Treasury
    incurred under this section. Reimbursement of any such costs shall
    be made with appropriated funds, as provided in this section,
    rather than through cancellation of notes.
    (e) Notification of Congress respecting failure to obtain funds
      necessary for financing
      Notwithstanding the provisions of this section, in the event that
    the Secretary of Transportation is unable to obtain the funds
    necessary to finance the increased ocean freight charges resulting
    from the requirements of subsections (a) and (b) of this section
    and section 1241f(a) of this Appendix, the Secretary of
    Transportation shall so notify the Congress within 10 working days
    of the discovery of such insufficiency.

-SOURCE-
    (June 29, 1936, ch. 858, title IX, Sec. 901d, as added Pub. L. 99-
    198, title XI, Sec. 1142, Dec. 23, 1985, 99 Stat. 1493.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 1733 of title 7, referred to in subsec. (b), was amended
    generally by Pub. L. 101-624, title XV, Sec. 1512, Nov. 28, 1990,
    104 Stat. 3646, and, as so amended, no longer contains provisions
    relating to valuation of commodities shipped from the inventory of
    the Commodity Credit Corporation. See section 1736f(e) of Title 7,
    Agriculture.

-COD-
                               CODIFICATION                           
      "December 23, 1985," substituted in subsec. (c) for "the date of
    the enactment of this Act", meaning the date of the enactment of
    Pub. L. 99-198 which enacted this section, as the probable intent
    of Congress.

-MISC1-
         APPROPRIATION FOR PAYMENTS OF OCEAN FREIGHT DIFFERENTIALS     
      Pub. L. 100-202, Sec. 101(a) [title V, Sec. 501], Dec. 22, 1987,
    101 Stat. 1329, 1329-27, provided that: "Such sums as may be
    necessary for fiscal year 1988 and thereafter are hereby
    appropriated to liquidate debt and pay interest due to the
    Secretary of the Treasury, as required by section 901d, Merchant
    Marine Act, 1936 [46 App. U.S.C. 1241h]."

-FOOTNOTE-
    (!1) See References in Text note below.

-End-

-CITE-
    46 USC APPENDIX Sec. 1241i                                  01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER IX - MISCELLANEOUS PROVISIONS

-HEAD-
    Sec. 1241i. Authorization of appropriations

-STATUTE-
      There are authorized to be appropriated such sums as may be
    necessary to carry out the provisions of sections 1241e through
    1241o of this Appendix.

-SOURCE-
    (June 29, 1936, ch. 858, title IX, Sec. 901e, as added Pub. L. 99-
    198, title XI, Sec. 1142, Dec. 23, 1985, 99 Stat. 1494.)

-End-

-CITE-
    46 USC APPENDIX Sec. 1241j                                  01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER IX - MISCELLANEOUS PROVISIONS

-HEAD-
    Sec. 1241j. Termination of sections 1241e through 1241o of this
      Appendix

-STATUTE-
      The operation of sections 1241e through 1241o of this Appendix
    shall terminate 90 days after the date on which a notification is
    made pursuant to section 1241h(e) of this Appendix, except with
    respect to shipments of agricultural commodities and products
    subject to contracts entered into before the expiration of such 90-
    day period, unless within such 90-day period the Secretary of
    Transportation proclaims that funds are available to finance
    increased freight charges resulting from the requirements of
    sections 1241f(a) and 1241h(a) and (b) of this Appendix. In the
    event of termination under this section, nothing in sections 1241e
    through 1241h of this Appendix shall be construed as exempting
    export activities from or subjecting export activities to the cargo
    preference laws except to the extent those activities are exempt
    under section 1707a(b) (!1) of title 7. In the event of termination
    under this section, the 50 percent requirement in section 1241(b)
    of this Appendix shall be in full effect.

-SOURCE-
    (June 29, 1936, ch. 858, title IX, Sec. 901f, as added Pub. L. 99-
    198, title XI, Sec. 1142, Dec. 23, 1985, 99 Stat. 1494.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The cargo preference laws, referred to in text, include act Mar.
    26, 1934, ch. 90, 48 Stat. 500, and act Aug. 26, 1954, ch. 936, 68
    Stat. 832, which are classified to sections 1241-1 and 1241,
    respectively, of this Appendix.
      Section 1707a of title 7, referred to in text, was repealed by
    Pub. L. 101-624, title XV, Sec. 1574, Nov. 28, 1990, 104 Stat.
    3702.

-FOOTNOTE-
    (!1) See References in Text note below.

-End-

-CITE-
    46 USC APPENDIX Sec. 1241k                                  01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER IX - MISCELLANEOUS PROVISIONS

-HEAD-
    Sec. 1241k. National Advisory Commission on Agricultural Export
      Transportation Policy

-STATUTE-
    (a) Establishment
      There is hereby established an advisory commission to be known as
    the National Advisory Commission on Agricultural Export
    Transportation Policy (hereafter in this section through section
    1241n of this Appendix referred to as the "Commission").
    (b) Membership; composition, appointment, etc.
      (1) The Commission shall be composed of 16 members.
      (2) Eight members of the Commission shall be appointed by the
    President.
      (3) The chairman and ranking minority members of the Senate
    Committee on Agriculture, Nutrition, and Forestry, of the
    Subcommittee on Merchant Marine of the Senate Committee on
    Commerce, Science, and Transportation, of the House Committee on
    Agriculture, and of the House Committee on Transportation and
    Infrastructure shall serve as members of the Commission.
      (4)(A) Four of the members appointed by the President shall be
    representatives of agricultural producers, cooperatives,
    merchandisers, and processors of agricultural commodities.
      (B) The remaining four members appointed by the President shall
    be representatives of the United States-flag maritime industry, two
    of whom shall represent labor and two of whom shall represent
    management.
    (c) Chairman; vacancy
      (1) The members of the Commission shall elect a Chairman from
    among its members.
      (2) Any vacancy in the Commission does not affect its powers but
    shall be filled in the same manner in which the original
    appointment was made.

-SOURCE-
    (June 29, 1936, ch. 858, title IX, Sec. 901g, as added Pub. L. 99-
    198, title XI, Sec. 1142, Dec. 23, 1985, 99 Stat. 1494; Pub. L.
    107-295, title IV, Sec. 408(c)(2), Nov. 25, 2002, 116 Stat. 2117.)

-MISC1-
                                AMENDMENTS                            
      2002 - Subsec. (b)(3). Pub. L. 107-295 substituted
    "Transportation and Infrastructure" for "Merchant Marine and
    Fisheries".

-End-

-CITE-
    46 USC APPENDIX Sec. 1241l                                  01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER IX - MISCELLANEOUS PROVISIONS

-HEAD-
    Sec. 1241l. Duties of Commission

-STATUTE-
    (a) Study and review of ocean transportation of agricultural
      exports subject to cargo preference laws; recommendations, scope,
      etc.
      It shall be the duty of the Commission to conduct a comprehensive
    study and review of the ocean transportation of agricultural
    exports subject to the cargo preference laws referred to in section
    1241f of this Appendix and to make recommendations to the President
    and the Congress for improving the efficiency of such
    transportation on United States-flag vessels in order to reduce the
    costs incurred by the United States in connection with such
    transportation. In carrying out such study and review, the
    Commission shall consider the extent to which any unfair or
    discriminatory practices of foreign governments increase the cost
    to the United States of transporting agricultural commodities
    subject to such cargo preference laws.
    (b) Reporting requirements; termination of Commission
      (1) The Commission shall submit an interim report to the
    President and the Congress not later than one year after December
    23, 1985, and such other interim reports as the Commission
    considers advisable.
      (2) The Commission shall submit a final report containing its
    findings and recommendations to the President and the Congress not
    later than two years after December 23, 1985. The report shall
    include recommendations for any changes in the provisions of
    paragraph (1) that would help assure that the cost of ocean freight
    and ocean freight differential incurred by the Department of
    Agriculture and the Commodity Credit Corporation on the
    agricultural export programs specified in section 1241f of this
    Appendix, is not increased above historical levels as a result of
    the extra demand for United States-flag vessels caused by section
    1241f of this Appendix.
      (3) Sixty days after the submission of the final report, the
    Commission shall cease to exist.
    (c) Contents of reports
      The Commission shall include in its reports submitted pursuant to
    subsection (b) of this section recommendations concerning the
    feasibility and desirability of achieving the following goals with
    respect to the ocean transportation of agricultural commodities
    subject to the cargo preference laws referred to in section 1241f
    of this Appendix:
        (1) Ensuring that the timing of commodity purchase agreements
      entered into by the United States in connection with the export
      of such commodities, and the methods of implementing such
      agreements, will minimize cost to the United States.
        (2) Ensuring that shipments of such commodities are made on the
      most modern and efficient United States-flag vessels available.
        (3) Ensuring that shipments of such commodities are made under
      the most advantageous terms available, including - 
          (A) charters for full shiploads;
          (B) charters for intermediate or long term;
          (C) charters for consecutive voyages and contracts of
        affreightment; and
          (D) adjustment of rates in the event that vessels used for
        shipments of such commodities also carry cargoes on return
        voyages.

        (4) Reduction and elimination of impediments, including delays
      in port, to the efficient loading and operation of the vessels
      employed for shipment of such commodities.
        (5) Utilization of open and competitive bidding for the ocean
      transportation of such commodities.

-SOURCE-
    (June 29, 1936, ch. 858, title IX, Sec. 901h, as added Pub. L. 99-
    198, title XI, Sec. 1142, Dec. 23, 1985, 99 Stat. 1495.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The cargo preference laws, referred to in subsecs. (a) and (c),
    include act Mar. 26, 1934, ch. 90, 48 Stat. 500, and act Aug. 26,
    1954, ch. 936, 68 Stat. 832, which are classified to sections 1241-
    1 and 1241, respectively, of this Appendix.

-End-

-CITE-
    46 USC APPENDIX Sec. 1241m                                  01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER IX - MISCELLANEOUS PROVISIONS

-HEAD-
    Sec. 1241m. Information and assistance to be furnished to
      Commission

-STATUTE-
      (a) Each department, agency, and instrumentality of the United
    States, including independent agencies, shall furnish to the
    Commission, upon request made by the Chairman, such statistical
    data, reports, and other information as the Commission considers
    necessary to carry out its functions.
      (b) The Secretary of Agriculture and the Secretary of
    Transportation shall make available to the Commission such staff,
    personnel, and administrative services as may reasonably be
    required to carry out the Commission's duties.

-SOURCE-
    (June 29, 1936, ch. 858, title IX, Sec. 901i, as added Pub. L. 99-
    198, title XI, Sec. 1142, Dec. 23, 1985, 99 Stat. 1496.)

-End-

-CITE-
    46 USC APPENDIX Sec. 1241n                                  01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER IX - MISCELLANEOUS PROVISIONS

-HEAD-
    Sec. 1241n. Compensation and travel and subsistence expenses of
      Commission members

-STATUTE-
      Members of the Commission shall serve without compensation in
    addition to compensation they may otherwise be entitled to receive
    as employees of the United States or as Members of Congress, but
    shall be reimbursed for travel, subsistence, and other necessary
    expenses incurred in the performance of duties vested in the
    Commission.

-SOURCE-
    (June 29, 1936, ch. 858, title IX, Sec. 901j, as added Pub. L. 99-
    198, title XI, Sec. 1142, Dec. 23, 1985, 99 Stat. 1496.)

-End-

-CITE-
    46 USC APPENDIX Sec. 1241o                                  01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER IX - MISCELLANEOUS PROVISIONS

-HEAD-
    Sec. 1241o. Definition of United States-flag vessel eligible to
      carry cargoes under sections 1241f through 1241h of this Appendix

-STATUTE-
      A United States flag (!1) vessel eligible to carry cargoes under
    sections 1241f through 1241h of this Appendix means a vessel, as
    defined in section 3 of title 1, that is necessary for national
    security purposes and, if more than 25 years old, is within five
    years of having been substantially rebuilt and certified by the
    Secretary of Transportation as having a useful life of at least
    five years after that rebuilding.

-SOURCE-
    (June 29, 1936, ch. 858, title IX, Sec. 901k, as added Pub. L. 99-
    198, title XI, Sec. 1142, Dec. 23, 1985, 99 Stat. 1496.)

-FOOTNOTE-
    (!1) So in original. Probably should be "United States-flag".

-End-

-CITE-
    46 USC APPENDIX Sec. 1241p                                  01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER IX - MISCELLANEOUS PROVISIONS

-HEAD-
    Sec. 1241p. Effect on other laws

-STATUTE-
      Sections 1241d to 1241p of this Appendix shall not be construed
    as modifying in any manner the provisions of section 1707a(b)(8)
    (!1) of title 7 or chapter 5 of title 5.

-SOURCE-
    (Pub. L. 99-198, title XI, Sec. 1143, Dec. 23, 1985, 99 Stat.
    1496.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Sections 1241d to 1241p of this Appendix, referred to in text,
    was in the original "this subtitle", meaning subtitle C (Secs. 1141-
    1143) of title XI of Pub. L. 99-198, Dec. 23, 1985, 99 Stat. 1490,
    which enacted sections 1241d to 1241p of this Appendix.
      Section 1707a of title 7, referred to in text, was repealed by
    Pub. L. 101-624, title XV, Sec. 1574, Nov. 28, 1990, 104 Stat.
    3702.

-COD-
                               CODIFICATION                           
      Section was enacted as part of the Food Security Act of 1985, and
    not as part of the Merchant Marine Act, 1936, which comprises this
    chapter.

-FOOTNOTE-
    (!1) See References in Text note below.

-End-

-CITE-
    46 USC APPENDIX Sec. 1241q                                  01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER IX - MISCELLANEOUS PROVISIONS

-HEAD-
    Sec. 1241q. Exemption of American Great Lakes vessels from
      restriction on carriage of preference cargoes

-STATUTE-
    (a) Exemption from restriction
      The restriction described in subsection (b) of this section shall
    not apply to an American Great Lakes vessel while it is so
    designated.
    (b) Restriction described
      The restriction referred to in subsection (a) of this section is
    the restriction in section 1241(b)(1) of this Appendix, that a
    vessel that is - 
        (1) built outside the United States;
        (2) rebuilt outside the United States; or
        (3) documented under any foreign registry;

    shall not be a privately owned United States-flag commercial vessel
    under that section until the vessel is documented under the laws of
    the United States for a period of 3 years.
    (c) Subsequent application of restriction
      Upon the revocation or termination of a designation of a vessel
    as an American Great Lakes vessel, the restriction described in
    subsection (b) of this section shall apply as if the vessel had
    never been a vessel documented under the laws of the United States.

-SOURCE-
    (Pub. L. 101-624, title XV, Sec. 1521, Nov. 28, 1990, 104 Stat.
    3665.)

-COD-
                               CODIFICATION                           
      Section was enacted as part of the Agricultural Development and
    Trade Act of 1990 and also as part of the Food, Agriculture,
    Conservation, and Trade Act of 1990, and not as part of the
    Merchant Marine Act, 1936, which comprises this chapter.

-End-

-CITE-
    46 USC APPENDIX Sec. 1241r                                  01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER IX - MISCELLANEOUS PROVISIONS

-HEAD-
    Sec. 1241r. Designation of American Great Lakes vessels

-STATUTE-
    (a) In general
      The Secretary shall designate a vessel as an American Great Lakes
    vessel for purposes of sections 1241q to 1241v of this Appendix if -
     
        (1) the vessel is documented under the laws of the United
      States;
        (2) the Secretary receives an application for such designation
      submitted in accordance with regulations issued by the Secretary
      under subsection (d) of this section;
        (3) the owner of the vessel enters into an agreement in
      accordance with subsection (b) of this section;
        (4)(A) the vessel is not more than 6 years old, and not less
      than 1 year old, on the effective date of the designation; or
        (B) the vessel is not more than 11 years old, and not less than
      1 year old on the effective date of the designation, and the
      Secretary determines that suitable vessels are not available for
      providing the type of service for which the vessel will be used
      after designation; and
        (5) the vessel has not been previously designated as an
      American Great Lakes vessel.
    (b) Construction and purchase agreement
      As a condition of designating a vessel as an American Great Lakes
    vessel under this section, the Secretary shall require the person
    who will be the owner of the vessel at the time of that designation
    to enter into an agreement with the Secretary which provides that
    if the Secretary determines that the vessel is necessary to the
    defense of the United States, the United States Government shall
    have, during the 120-day period following the date of any
    revocation of such designation under section 1241t of this
    Appendix, an exclusive right to purchase the vessel for a price
    equal to - 
        (1) the approximate world market value of the vessel; or
        (2) the cost of the vessel to the owner less an amount
      representing reasonable depreciation of the vessel;

    whichever is greater.
    (c) Certain foreign registry and sale not prohibited
      Notwithstanding any other provision of law, if the United States
    does not purchase a vessel in accordance with its right of purchase
    under a construction and purchase agreement under subsection (b) of
    this section, the owner of the vessel shall not be prohibited from -
     
        (1) transferring the vessel to a foreign registry; or
        (2) selling the vessel to a person who is not a citizen of the
      United States.
    (d) Issuance of regulations
      Not later than 60 days after November 28, 1990, the Secretary
    shall issue regulations establishing requirements for submission of
    applications for designation of vessels as American Great Lakes
    vessels under this section.

-SOURCE-
    (Pub. L. 101-624, title XV, Sec. 1522, Nov. 28, 1990, 104 Stat.
    3665.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Sections 1241q to 1241v of this Appendix, referred to in subsec.
    (a), was in the original "this subtitle", meaning subtitle B (Secs.
    1521-1527) of title XV of Pub. L. 101-624, Nov. 28, 1990, 104 Stat.
    3665, which enacted sections 1241q to 1241v of this Appendix and
    amended section 1241f of this Appendix.

-COD-
                               CODIFICATION                           
      Section was enacted as part of the Agricultural Development and
    Trade Act of 1990 and also as part of the Food, Agriculture,
    Conservation, and Trade Act of 1990, and not as part of the
    Merchant Marine Act, 1936, which comprises this chapter.

-End-

-CITE-
    46 USC APPENDIX Sec. 1241s                                  01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER IX - MISCELLANEOUS PROVISIONS

-HEAD-
    Sec. 1241s. Restrictions on operations of American Great Lakes
      vessels

-STATUTE-
    (a) In general
      Subject to subsection (b) of this section, an American Great
    Lakes vessel shall not be used - 
        (1) to engage in trade - 
          (A) from a port in the United States that is not located on
        the Great Lakes; or
          (B) between ports in the United States;

        (2) to carry bulk cargo (as that term is defined in section
      1702 of this Appendix (!1) which is subject to section 1241(b) or
      1241f of this Appendix, or section 2631 of title 10; or

        (3) to provide any service other than ocean freight service - 
          (A) as a contract carrier; or
          (B) as a common carrier on a fixed advertised schedule
        offering frequent sailings at regular intervals in the foreign
        commerce of the United States.
    (b) Off-season carriage exception
      (1) In general
        Subject to paragraph (2), an American Great Lakes vessel may be
      used to engage in trade otherwise prohibited by subsection
      (a)(1)(A) of this section for not more than 90 days during any 12-
      month period.
      (2) Limitation
        An American Great Lakes vessel shall not be used during the
      Great Lakes shipping season to engage in trade referred to in
      paragraph (1).

-SOURCE-
    (Pub. L. 101-624, title XV, Sec. 1523, Nov. 28, 1990, 104 Stat.
    3666.)

-COD-
                               CODIFICATION                           
      Section was enacted as part of the Agricultural Development and
    Trade Act of 1990 and also as part of the Food, Agriculture,
    Conservation, and Trade Act of 1990, and not as part of the
    Merchant Marine Act, 1936, which comprises this chapter.

-FOOTNOTE-
    (!1) So in original. Probably should be followed by a closing
         parenthesis.

-End-

-CITE-
    46 USC APPENDIX Sec. 1241t                                  01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER IX - MISCELLANEOUS PROVISIONS

-HEAD-
    Sec. 1241t. Revocation and termination of designation

-STATUTE-
    (a) Revocation
      The Secretary, after notice and an opportunity for a hearing, may
    revoke the designation of a vessel under section 1241r of this
    Appendix as an American Great Lakes vessel if the Secretary
    determines that - 
        (1) the vessel does not meet a requirement for such
      designation;
        (2) the vessel has been operated in violation of sections 1241q
      to 1241v of this Appendix; or
        (3) the owner or operator of the vessel has violated a
      construction and purchase agreement under section 1241r(b) of
      this Appendix.
    (b) Civil penalty
      The Secretary, after notice and an opportunity for a hearing, may
    assess a civil penalty of not more than $1,000,000 against the
    owner of an American Great Lakes vessel, for any act for which the
    designation of that vessel as an American Great Lakes vessel may be
    revoked under subsection (a) of this section.
    (c) Termination of designation
      The Secretary may terminate the designation of a vessel as an
    American Great Lakes vessel under sections 1241q to 1241v of this
    Appendix upon petition and a showing of good cause for that
    termination by the owner of the vessel. The Secretary may impose
    conditions or restrictions in a termination order to prevent
    significant adverse effects on other United States-flag vessel
    operators.

-SOURCE-
    (Pub. L. 101-624, title XV, Sec. 1524, Nov. 28, 1990, 104 Stat.
    3667.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Sections 1241q to 1241v of this Appendix, referred to in subsecs.
    (a)(2) and (c), was in the original "this subtitle", meaning
    subtitle B (Secs. 1521-1527) of title XV of Pub. L. 101-624, Nov.
    28, 1990, 104 Stat. 3665, which enacted sections 1241q to 1241v of
    this Appendix and amended section 1241f of this Appendix.

-COD-
                               CODIFICATION                           
      Section was enacted as part of the Agricultural Development and
    Trade Act of 1990 and also as part of the Food, Agriculture,
    Conservation, and Trade Act of 1990, and not as part of the
    Merchant Marine Act, 1936, which comprises this chapter.

-End-

-CITE-
    46 USC APPENDIX Sec. 1241u                                  01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER IX - MISCELLANEOUS PROVISIONS

-HEAD-
    Sec. 1241u. Study and report

-STATUTE-
    (a) Study
      The Secretary, in consultation with the Secretary of Agriculture,
    shall conduct a study on the implementation of sections 1241q to
    1241v of this Appendix. The study shall include analysis of - 
        (1) the effects of that implementation on diversions of cargo
      to and from the Great Lakes port range and any resulting effects
      on the cost of transporting commodities furnished pursuant to
      title II of the Agricultural Trade Development and Assistance Act
      of 1954 [7 U.S.C. 1721 et seq.]; and
        (2) whether the authority to designate vessels as American
      Great Lakes vessels has increased United States-flag vessel
      service to Great Lakes ports.
    (b) Report
      Not later than December 31, 1994, the Secretary shall submit a
    report to the Congress on the findings of the study under
    subsection (a) of this section.

-SOURCE-
    (Pub. L. 101-624, title XV, Sec. 1526, Nov. 28, 1990, 104 Stat.
    3668.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Sections 1241q to 1241v of this Appendix, referred to in subsec.
    (a), was in the original "this subtitle", meaning subtitle B (Secs.
    1521-1527) of title XV of Pub. L. 101-624, Nov. 28, 1990, 104 Stat.
    3665, which enacted sections 1241q to 1241v of this Appendix and
    amended section 1241f of this Appendix.
      The Agricultural Trade Development and Assistance Act of 1954,
    referred to in subsec. (a)(1), is act July 10, 1954, ch. 469, 68
    Stat. 454, as amended. Title II of the Act is classified generally
    to subchapter III (Sec. 1721 et seq.) of chapter 41 of Title 7,
    Agriculture. For complete classification of this Act to the Code,
    see Short Title note set out under section 1691 of Title 7 and
    Tables.

-COD-
                               CODIFICATION                           
      Section was enacted as part of the Agricultural Development and
    Trade Act of 1990 and also as part of the Food, Agriculture,
    Conservation, and Trade Act of 1990, and not as part of the
    Merchant Marine Act, 1936, which comprises this chapter.

-End-

-CITE-
    46 USC APPENDIX Sec. 1241v                                  01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER IX - MISCELLANEOUS PROVISIONS

-HEAD-
    Sec. 1241v. Definitions

-STATUTE-
      As used in sections 1241q to 1241v of this Appendix - 
      (1) American Great Lakes vessel
        The term "American Great Lakes vessel" means a vessel which is
      so designated by the Secretary in accordance with section 1241r
      of this Appendix.
      (2) Great Lakes
        The term "Great Lakes" means Lake Superior; Lake Michigan; Lake
      Huron; Lake Erie; Lake Ontario; the Saint Lawrence River west of
      Saint Regis, New York; and their connecting and tributary waters.
      (3) Great Lakes shipping season
        The term "Great Lakes shipping season" means the period of each
      year during which the Saint Lawrence Seaway is open for
      navigation by vessels, as declared by the Saint Lawrence Seaway
      Development Corporation created by the Act of May 13, 1954 (33
      U.S.C. 981 et seq.).
      (4) Secretary
        The term "Secretary" means the Secretary of Transportation.

-SOURCE-
    (Pub. L. 101-624, title XV, Sec. 1527, Nov. 28, 1990, 104 Stat.
    3668.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Sections 1241q to 1241v of this Appendix, referred to in text,
    was in the original "this subtitle", meaning subtitle B (Secs. 1521-
    1527) of title XV of Pub. L. 101-624, Nov. 28, 1990, 104 Stat.
    3665, which enacted sections 1241q to 1241v of this Appendix and
    amended section 1241f of this Appendix.
      Act of May 13, 1954, referred to in par. (3), is act May 13,
    1954, ch. 201, 68 Stat. 93, as amended, which is classified
    generally to chapter 19 (Sec. 981 et seq.) of Title 33, Navigation
    and Navigable Waters. For complete classification of this Act to
    the Code, see Tables.

-COD-
                               CODIFICATION                           
      Section was enacted as part of the Agricultural Development and
    Trade Act of 1990 and also as part of the Food, Agriculture,
    Conservation, and Trade Act of 1990, and not as part of the
    Merchant Marine Act, 1936, which comprises this chapter.

-End-

-CITE-
    46 USC APPENDIX Sec. 1242                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER IX - MISCELLANEOUS PROVISIONS

-HEAD-
    Sec. 1242. Requisition or purchase of vessels in time of emergency

-STATUTE-
    (a) Compensation; restoration; consequential damages
      Whenever the President shall proclaim that the security of the
    national defense makes it advisable or during any national
    emergency declared by proclamation of the President, it shall be
    lawful for the Secretary of Transportation to requisition or
    purchase any vessel or other watercraft owned by citizens of the
    United States, a documented vessel, or a vessel under construction
    within the United States, or for any period during such emergency,
    to requisition or charter the use of any such property. The
    termination of any emergency so declared shall be announced by a
    further proclamation by the President. When any such property or
    the use thereof is so requisitioned, the owner thereof shall be
    paid just compensation for the property taken or for the use of
    such property, but in no case shall the value of the property taken
    or used be deemed enhanced by the causes necessitating the taking
    or use. If any property is taken and used under authority of this
    section, but the ownership thereof is not required by the United
    States, such property shall be restored to the owner in a condition
    at least as good as when taken, less ordinary wear and tear, or the
    owner shall be paid an amount for reconditioning sufficient to
    place the property in such condition. The owner shall not be paid
    for any consequential damages arising from a taking or use of
    property under authority of this section.
    (b) Determination of value of vessel
      When any vessel is taken or used under authority of this section,
    upon which vessel a construction-differential subsidy has been
    allowed and paid, the value of the vessel at the time of its taking
    shall be determined as provided in section 1212 of this Appendix,
    and in determining the value of any vessel taken or used, on which
    a construction-differential subsidy has not been paid, the value of
    any national defense features previously paid for by the United
    States shall be excluded.
    (c) Charter of vessels; compensation; reimbursement for loss or
      damage
      If any property is taken and used under authority of this
    section, but the ownership thereof is not required by the United
    States, the Secretary of Transportation, at the time of the taking
    or as soon thereafter as the exigencies of the situation may
    permit, shall transmit to the person entitled to the possession of
    such property a charter setting forth the terms which, in the
    Secretary's judgment, should govern the relationships between the
    United States and such person and a statement of the rate of hire
    which, in the Secretary's judgment, will be just compensation for
    the use of such property and for the services required under the
    terms of such charter. If such person does not execute and deliver
    such charter and accept such rate of hire, the Secretary of
    Transportation shall pay to such person as a tentative advance
    only, on account of such just compensation a sum equal to 75 per
    centum of such rate of hire as the same may from time to time be
    due under the terms of the charter so tendered, and such person
    shall be entitled to sue the United States in a court having
    jurisdiction of such claims to recover such amounts as would be
    equal to just compensation for the use of the property and for the
    services required in connection with such use: Provided, however,
    That in the event of an election by such person to reject the rate
    of hire fixed by the Secretary of Transportation and to sue in the
    courts, the excess of any amounts advanced on account of just
    compensation over the amount of the court judgment will be required
    to be refunded. In the event of loss or damage to such property,
    due to operation of a risk assumed by the United States under the
    terms of a charter prescribed in this subsection, but no valuation
    of such vessel or other property or mode of compensation has been
    agreed to, the United States shall pay just compensation for such
    loss or damage, to the extent the person entitled thereto is not
    reimbursed therefor through policies of insurance against such loss
    or damage.
    (d) Determination of amount of compensation
      In all cases, the just compensation authorized by this section
    shall be determined and paid by the Secretary of Transportation as
    soon as practicable, but if the amount of just compensation
    determined by the Secretary is unsatisfactory to the person
    entitled thereto; such person shall be paid, as a tentative advance
    only, 75 per centum of the amount so determined and shall be
    entitled to sue the United States to recover such amount as would
    equal just compensation therefor, in the manner provided for by
    sections 1346 and 1491 of title 28: Provided, however, That in that
    event of an election to reject the amount determined by the
    Secretary of Transportation and to sue in the courts, the excess of
    any amounts advanced on account of just compensation over the
    amount of the court judgment will be required to be refunded.
      The existence of any valid claim by way of mortgage or maritime
    claim or attachment lien upon such vessel shall not prevent the
    taking thereof pursuant to this section: Provided, however, That in
    the event any such claim exists the Secretary of Transportation may
    in his discretion deposit such portion of the compensation
    hereunder, or advances on account thereof, as may equal but not
    exceed the amount of such claims in respect of the vessel, with the
    Treasurer of the United States, and the fund so deposited shall be
    available for the payment of such compensation, and shall be
    subject to be applied to the payment of the amount of any valid
    claim by way of mortgage or maritime lien or attachment lien upon
    such vessel, or of any stipulation therefor in a court of the
    United States, or of any State, subsisting at the time of such
    requisition or taking of title or possession; the holder of any
    such claim may commence prior to June 30, 1943, or within six
    months after the first such deposit with the Treasurer and
    publication of notice thereof in the Federal Register, whichever
    date is later, and maintain in the United States district court
    from whose custody such vessel has been or may be taken or in whose
    territorial jurisdiction the vessel was lying at the time of
    requisitioning or taking of title or possession, a suit in
    admiralty according to the principles of libels in rem against the
    fund, which shall proceed and be heard and determined according to
    the principles of law and to the rules of practice obtaining in
    like cases between private parties, and any decree in said suit
    shall be paid out of the first and all subsequent deposits of
    compensation; and such suit shall be commenced in the manner
    provided by section 742 of this Appendix and service of process
    shall be made in the manner therein provided by service upon the
    United States attorney and by mailing by registered mail to the
    Attorney General and the Secretary of Transportation and due notice
    shall under order of the court be given to all interested persons,
    and any decree shall be subject to appeal and revision as now
    provided in other cases of admiralty and maritime jurisdiction.
    (e) Use of vessels by Secretary; transfer to other departments or
      agencies; reimbursement of Secretary
      The Secretary of Transportation is authorized to repair,
    recondition, reconstruct, and operate, or charter for operation,
    any property acquired under authority of this section. The
    Secretary of Transportation is further authorized to transfer the
    possession or control of any such property to any department or
    agency of the Government of the United States upon such terms and
    conditions as may be approved by the President. In case of any such
    transfer the department or agency to which the transfer is made
    shall promptly reimburse the Secretary of Transportation for the
    Department of Transportation's expenditures on account of just
    compensation, purchase price, repairs, reconditioning,
    reconstruction, or charter hire for the property transferred. Such
    reimbursements shall be deposited in the construction fund
    established by section 1116 of this Appendix.

-SOURCE-
    (June 29, 1936, ch. 858, title IX, Sec. 902, 49 Stat. 2015; Aug. 7,
    1939, ch. 555, Sec. 3, 53 Stat. 1255; Mar. 24, 1943, ch. 26, Sec.
    3(d), 57 Stat. 49; Aug. 3, 1956, ch. 929, Secs. 2, 3, 70 Stat. 985;
    Pub. L. 97-31, Sec. 12(131), Aug. 6, 1981, 95 Stat. 165; Pub. L.
    100-710, title I, Sec. 104(c), Nov. 23, 1988, 102 Stat. 4750.)

-COD-
                               CODIFICATION                           
      In subsec. (d), "sections 1346 and 1491 of title 28" substituted
    for "section 24, paragraph 20, and section 145 of the Judicial Code
    (U.S.C., 1946 edition, title 28, secs. 41(20) and 250)" on
    authority of act June 25, 1948, ch. 646, 62 Stat. 869, the first
    section of which enacted Title 28, Judiciary and Judicial
    Procedure. Section 1346 of Title 28 sets forth the basic
    jurisdiction of the district courts in cases in which the United
    States is defendant. Section 1491 of Title 28 sets forth the basic
    jurisdiction of the United States Court of Claims. Sections 24(20)
    and 145 of the Judicial Code were also restated in sections 1496,
    1501, 1503, 2401, 2402, and 2501 of Title 28.

-MISC1-
                                AMENDMENTS                            
      1988 - Subsec. (a). Pub. L. 100-710 substituted "a documented
    vessel, or a vessel under construction" for "or under
    construction".
      1981 - Subsec. (a). Pub. L. 97-31, Sec. 12(131)(A), substituted
    "Secretary of Transportation" for "Commission". For prior transfers
    of functions of the Commission, meaning the United States Maritime
    Commission, see Transfer of Functions note below.
      Subsec. (c). Pub. L. 97-31, Sec. 12(131)(A), (B), substituted
    "Secretary of Transportation" for "Commission" in three places and
    "Secretary's" for "Commission's" in two places. For prior transfers
    of functions of the Commission, meaning the United States Maritime
    Commission, see Transfer of Functions note below.
      Subsec. (d). Pub. L. 97-31, Sec. 12(131)(A), (C), (D),
    substituted "Secretary of Transportation" for "Commission" and
    "United States Maritime Commission" and "his discretion" for "its
    discretion". For prior transfers of functions of United States
    Maritime Commission, see Transfer of Functions note below.
      Subsec. (e). Pub. L. 97-31, Sec. 12(131)(A), (E), substituted
    "Secretary of Transportation" for "Commission" and "the Department
    of Transportation's expenditures" for "its expenditures". For prior
    transfers of functions of the Commission, meaning the United States
    Maritime Commission, see Transfer of Functions note below.
      1956 - Subsec. (c). Act Aug. 3, 1956, Sec. 2, inserted "as a
    tentative advance only," in second sentence, and substituted "in a
    court having jurisdiction of such claims to recover such amounts as
    would be equal to just compensation for the use of the property and
    for the services required in connection with such use: Provided,
    however, That in the event of an election by such person to reject
    the rate of hire fixed by the Commission and to sue in the courts,
    the excess of any amounts advanced on account of just compensation
    over the amount of the court judgment will be required to be
    refunded." for "to recover such further sum as added to such 75 per
    centum will make up such amount as will be just compensation for
    the use of the property and for the services required in connection
    with such use.".
      Subsec. (d). Act Aug. 3, 1956, Sec. 3, inserted "as a tentative
    advance only", substituted "such amount as would equal" for "such
    further sum as, added to said 75 per centum will make up such
    amount as will be", and inserted proviso.
      1943 - Subsec. (d). Act Mar. 24, 1943, added second par.
      1939 - Subsecs. (c) to (e). Act Aug. 7, 1939, added subsecs. (c)
    to (e).

                     EFFECTIVE DATE OF 1988 AMENDMENT                 
      Amendment by Pub. L. 100-710 effective Jan. 1, 1989, with certain
    exceptions and qualifications, see section 107 of Pub. L. 100-710,
    set out as an Effective Date note under section 30101 of Title 46,
    Shipping.

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      For transfer of functions of United States Maritime Commission,
    see Reorg. Plan No. 6 of 1949, Reorg. Plan No. 21 of 1950, and
    Reorg. Plan No. 7 of 1961, set out under section 1111 of this
    Appendix.
      For transfer of functions of other officers, employees, and
    agencies of Department of the Treasury, with certain exceptions, to
    Secretary of the Treasury with power to delegate, see Reorg. Plan
    No. 26 of 1950, Secs. 1, 2, eff. July 31, 1950, 15 F.R. 4935, 64
    Stat. 1280, 1281, set out in the Appendix to Title 5, Government
    Organization and Employees. Treasurer of the United States,
    referred to in this section, is an officer of Department of the
    Treasury.

-MISC2-
                    TERMINATION OF WAR AND EMERGENCIES                
      Act July 25, 1947, ch. 327, Sec. 3, 61 Stat. 451, provided that
    in the interpretation of subsec. (a) of this section, the date July
    25, 1947, shall be deemed to be the date of termination of any
    state of war theretofore declared by Congress and of the national
    emergencies proclaimed by the President on Sept. 8, 1939, and May
    27, 1941.

-End-

-CITE-
    46 USC APPENDIX Sec. 1242a                                  01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER IX - MISCELLANEOUS PROVISIONS

-HEAD-
    Sec. 1242a. Maintenance of and adjustment of obligations with
      respect to essential vessels affected by Neutrality Act

-STATUTE-
    (a) "Essential vessel" defined
      When used in this section the term "essential vessel" means any
    vessel (1) which is (A) security for any mortgage indebtedness to
    the United States or (B) constructed under this chapter, or
    required by the terms of a contract under this chapter to be
    operated on a certain essential foreign trade route, and (2) which
    it is necessary in the interests of commerce and national defense
    to maintain in condition for prompt use.
    (b) Adjustment of obligations and arrangements for maintenance of
      essential vessels
      For the purposes of preserving in the national interest the full
    availability and usefulness of essential vessels, which, under the
    provisions of the Neutrality Act of 1939 [22 U.S.C. 441 et seq.]
    (or any proclamation issued thereunder), or compatibly with the
    national interest, cannot be operated in the service, route, or
    line to which such vessels are assigned pursuant to this chapter,
    or in which they would otherwise be operated, the Secretary of
    Transportation is authorized to make adjustments of obligations in
    respect to such vessels and to make arrangements for the
    maintenance of such vessels, subject to the provisions of this
    section and to such rules and regulations as the Secretary of
    Transportation shall prescribe as necessary or appropriate for
    carrying out the purposes and provisions of this section. If the
    Secretary of Transportation, upon written application in respect of
    any essential vessel, determines after such examination,
    investigation, and proceedings as he deems desirable, that (1) the
    operation of such vessel in the service, route, or line to which
    such vessel is assigned pursuant to this chapter, or in which it
    would otherwise be operated, is either (A) not lawful under the
    Neutrality Act of 1939 (or any proclamation issued thereunder), or
    (B) not compatible with the maintenance of availability of such
    vessel for purposes of national defense and commerce, (2) it is not
    feasible under existing law to employ such vessel in any other
    service or operation in either the foreign or domestic trades
    (except temporary or emergency operation under subsection (c)(5)
    hereof), and (3) the applicant, by reason of the restrictions of
    the Neutrality Act of 1939, or the withdrawal of vessels for
    national-defense purposes under clause (1) hereof, is not earning
    or will not earn a fair and reasonable return on the capital
    necessarily employed in its business, the Secretary of
    Transportation may make adjustments and arrangements with the
    applicant as provided in subsection (c) of this section, which
    shall continue in effect only during the circumstances above
    described.
    (c) Provisions included within adjustments and arrangements
      Such adjustments and arrangements shall include suspension of the
    requirement to operate such vessel in foreign trade under the
    applicable operating-differential or construction-differential
    subsidy contract or mortgage or other agreement, and of the right
    to operating-differential subsidy in respect of such vessel, and
    may include any one or more of the following provisions, in whole
    or in part, as, and to the extent that, the Secretary of
    Transportation may deem to be necessary or appropriate to carry out
    the purposes of this chapter, or the purposes and provisions of
    this section:
        (1) Lay-up of the vessel by the owner or, at the option of the
      Secretary of Transportation, in the custody of the Secretary of
      Transportation, with payment or reimbursement by the Secretary of
      Transportation of necessary and proper expenses thereof
      (including reasonable overhead and insurance), or in lieu of such
      payment or reimbursement, a fixed periodic allowance therefor;
        (2) Postponement, for a period not in excess of the period or
      periods of lay-up, of the maturity date of each installment on
      account of the principal of obligations to the United States in
      respect of the vessel (whether or not such maturity date shall
      fall within such period or periods), or rearrangement of such
      maturities;
        (3) Postponement or cancellation of interest accruing on such
      obligations during such period or periods of lay-up;
        (4) Extension for a period not in excess of the period or
      periods of lay-up, of the twenty-year life limitation in respect
      of the vessel, and of the period or periods of other limitations
      and provisions of this chapter, insofar as they are based upon a
      twenty-year life;
        (5) Provisions for such temporary or emergency employment of
      the vessel in lieu of lay-up as may be practicable, with such
      arrangements for management of the vessel, payment of expenses,
      and application of the proceeds of such employment, as the
      Secretary of Transportation may approve, the period or periods of
      such operation being included as part of the period or periods of
      lay-up;
        (6) The payment to the Secretary of Transportation, upon
      termination of the arrangements with the applicant hereunder, out
      of the applicant's net profits, earned while such arrangements
      were in effect, in excess of 10 per centum per annum on the
      capital necessarily employed in the applicant's business, in
      reimbursement, to the extent that the Secretary of Transportation
      shall deem it necessary to carry out the purposes of this
      section, on account of obligations postponed or canceled and
      expenses incurred or paid by the Secretary of Transportation
      under this subsection. For the purposes of this paragraph capital
      of the applicant represented by vessels of the applicant laid up
      or operated under this section shall not be excluded from capital
      necessarily employed in the applicant's business. The Secretary
      of Transportation may require that the vessels so laid up or
      operated be security for reimbursement hereunder.
    (d) Readjustment or modification of adjustments and arrangements
      The adjustments and arrangements made under subsection (c) of
    this section in respect of any vessel shall be subject to such
    readjustment or modification from time to time as may be deemed
    necessary by the Secretary of Transportation to carry out the
    purposes and provisions of this section.
    (e) Expenses incurred in adjustments and arrangements
      Moneys in the construction fund of the Secretary of
    Transportation shall be available for expenses of the Secretary of
    Transportation incurred in adjustments or arrangements made under
    this section.

-SOURCE-
    (June 29, 1940, ch. 442, 54 Stat. 684; Pub. L. 97-31, Sec. 12(132),
    Aug. 6, 1981, 95 Stat. 165.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Neutrality Act of 1939, referred to in subsec. (b), is act
    Nov. 4, 1939, ch. 2, 54 Stat. 4, as amended, which is classified
    generally to subchapter II (Sec. 441 et seq.) of chapter 9 of Title
    22, Foreign Relations and Intercourse. For complete classification
    of this Act to the Code, see Short Title note set out under section
    441 of Title 22 and Tables.

-COD-
                               CODIFICATION                           
      Section was not enacted as part of the Merchant Marine Act, 1936,
    which comprises this chapter.

-MISC1-
                                AMENDMENTS                            
      1981 - Subsec. (b). Pub. L. 97-31 substituted "Secretary of
    Transportation" for "United States Maritime Commission" and
    "Commission" wherever appearing and "he deems" for "it deems". For
    prior transfers of functions of United States Maritime Commission,
    see Transfer of Functions note below.
      Subsecs. (c) to (e). Pub. L. 97-31 substituted "Secretary of
    Transportation" for "Commission" wherever appearing. For prior
    transfers of functions of the Commission, meaning the United States
    Maritime Commission, see Transfer of Functions note below.

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      For transfer of functions of United States Maritime Commission,
    see Reorg. Plan No. 6 of 1949, Reorg. Plan No. 21 of 1950, and
    Reorg. Plan No. 7 of 1961, set out under section 1111 of this
    Appendix.

-End-

-CITE-
    46 USC APPENDIX Sec. 1244                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER IX - MISCELLANEOUS PROVISIONS

-HEAD-
    Sec. 1244. Definitions

-STATUTE-
      When used in this chapter - 
      (a) The words "foreign commerce" or "foreign trade" mean commerce
    or trade between the United States, its Territories or possessions,
    or the District of Columbia, and a foreign country, except that in
    the context of section 1177 of this Appendix concerning capital
    construction funds and in the context of subchapter V of this
    chapter concerning construction-differential subsidy, the said
    words "foreign commerce" or "foreign trade" shall also include, in
    the case of liquid and dry bulk cargo carrying services, trading
    between foreign ports in accordance with normal commercial bulk
    shipping practices in such manner as will permit U.S.-flag bulk
    vessels freely to compete with foreign-flag bulk carrying vessels
    in their operation or in competing for charters, subject to rules
    and regulations promulgated by the Secretary of Transportation
    pursuant to section 1114(b) of this Appendix.
      (b) The term "person" includes corporations, partnerships, and
    associations existing under or authorized by the laws of the United
    States, or any State, Territory, District, or possession thereof,
    or of any foreign country.
      (c) The words "citizen of the United States" include a
    corporation, partnership, or association only if it is a citizen of
    the United States within the meaning of sections 802 and 803 of
    this Appendix, and with respect to a corporation under subchapter
    VI of this chapter, all directors of the corporation are citizens
    of the United States and, in the case of a corporation,
    partnership, or association operating a vessel on the Great Lakes,
    or on bays, sounds, rivers, harbors, or inland lakes of the United
    States the amount of interest required to be owned by a citizen of
    the United States shall be not less than 75 per centum.
      (d) The word "construction" includes outfitting and equipping.
      (e) Repealed. Pub. L. 97-31, Sec. 12(133)(B), Aug. 6, 1981, 95
    Stat. 165.
      (f) The terms "Representative" and "Member of the Congress"
    include Delegates to the House of Representatives from the District
    of Columbia, Guam, and the Virgin Islands, and the Resident
    Commissioner to the House of Representatives from the Commonwealth
    of Puerto Rico.
      (g) The term "United States" includes the District of Columbia,
    the Commonwealth of Puerto Rico, the Northern Mariana Islands,
    Guam, American Samoa, the Virgin Islands, and the areas and
    installations in the Republic of Panama made available to the
    United States pursuant to the Panama Canal Treaty of 1977, the
    agreements relating to and implementing that Treaty, signed
    September 7, 1977, and the Agreement Between the United States of
    America and the Republic of Panama Concerning Air Traffic Control
    and Related Services, concluded January 8, 1979.

-SOURCE-
    (June 29, 1936, ch. 858, title IX, Sec. 905, 49 Stat. 2016; June
    23, 1938, ch. 600, Sec. 39, 52 Stat. 964; July 17, 1952, ch. 939,
    Sec. 21, 66 Stat. 765; Pub. L. 86-327, Sec. 4, Sept. 21, 1959, 73
    Stat. 597; Pub. L. 91-469, Sec. 28, Oct. 21, 1970, 84 Stat. 1034;
    Pub. L. 92-402, Sec. 2, Aug. 22, 1972, 86 Stat. 617; Pub. L. 96-
    453, Sec. 3(b), Oct. 15, 1980, 94 Stat. 2008; Pub. L. 97-31, Sec.
    12(133), Aug. 6, 1981, 95 Stat. 165.)

-MISC1-
                                AMENDMENTS                            
      1981 - Subsec. (a). Pub. L. 97-31, Sec. 12(133)(A), substituted
    "Secretary of Transportation" for "Secretary of Commerce".
      Subsec. (e). Pub. L. 97-31, Sec. 12(133)(B), struck out subsec.
    (e) which defined "United States Maritime Commission" and
    "Commission" to mean the Secretary of Commerce, the Maritime
    Administrator, or the Federal Maritime Commission as the context
    required.
      1980 - Subsecs. (f), (g). Pub. L. 96-453 added subsecs. (f) and
    (g).
      1972 - Subsec. (a). Pub. L. 92-402 made definition of "foreign
    commerce" or "foreign trade" in context of subchapter V of this
    chapter concerning construction-differential subsidy applicable in
    context of section 1177 of this Appendix concerning capital
    construction funds, made such definition subject to rules and
    regulations promulgated by the Secretary of Commerce pursuant to
    section 1114(b) of this Appendix rather than only to uniform
    regulations promulgated by the Secretary and also applicable, in
    the case of bulk cargo carrying services, to trading between
    foreign ports in such manner as will permit U.S.-flag bulk carrying
    vessels freely to compete with foreign-flag bulk carrying vessels
    in their operation or in competing for charters.
      1970 - Subsec. (a). Pub. L. 91-469 expanded definition of
    "foreign commerce" or "foreign trade" to permit United States
    operators of dry and liquid bulk ships built with construction
    subsidy to engage in foreign-to-foreign carriage to the extent
    permitted by regulations issued by the Secretary of Commerce.
      1959 - Subsec. (c). Pub. L. 86-327 inserted requirement that all
    the directors of a corporation under subchapter VI of this chapter
    be United States citizens.
      1952 - Subsec. (e). Act July 17, 1952, added subsec. (e) which
    defined "United States Maritime Commission" and "Commission".
      1938 - Subsec. (a). Act June 23, 1938, inserted reference to
    "foreign commerce".
      Subsec. (c). Act June 23, 1938, inserted provisions relating to
    interest of citizens of the United States in vessels operated on
    the Great Lakes, or on bays, sounds, rivers, harbors, or inland
    lakes of the United States.

                     EFFECTIVE DATE OF 1980 AMENDMENT                 
      Amendment by Pub. L. 96-453 effective Oct. 1, 1981, see section 4
    of Pub. L. 96-453, set out as an Effective Date note under section
    1295 of this Appendix.

-End-

-CITE-
    46 USC APPENDIX Sec. 1245                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER IX - MISCELLANEOUS PROVISIONS

-HEAD-
    Sec. 1245. Separability; short title of chapter

-STATUTE-
      If any provisions of this chapter, or the application thereof to
    any person or circumstance, is held invalid, the remainder of the
    chapter, and the application of such provisions to other persons or
    circumstances, shall not be affected thereby. This chapter may be
    cited as the Merchant Marine Act, 1936.

-SOURCE-
    (June 29, 1936, ch. 858, title IX, Sec. 906, 49 Stat. 2016.)

-MISC1-
                       SHORT TITLE OF 1999 AMENDMENT                   
      Pub. L. 106-65, div. C, title XXXVI, Sec. 3601, Oct. 5, 1999, 113
    Stat. 975, provided that: "This title [amending section 1294 of
    this Appendix and section 3302 of this title] may be cited as the
    'Maritime Administration Authorization Act for Fiscal Year 2000'."

                      SHORT TITLE OF 1996 AMENDMENTS                  
      Pub. L. 104-297, title III, Sec. 301, Oct. 11, 1996, 110 Stat.
    3615, provided that: "This title [enacting sections 1279f and 1279g
    of this Appendix, amending section 1274 of this Appendix, and
    enacting provisions set out as a note under section 1274 of this
    Appendix] may be cited as the 'Fisheries Financing Act'."
      Pub. L. 104-239, Sec. 1, Oct. 8, 1996, 110 Stat. 3118, provided
    that: "This Act [enacting sections 1132, 1162, 1185a, and 1187 to
    1187e of this Appendix, amending sections 808, 1175, 1222, 1223,
    1241f, 1271, 1273 to 1274a, 1279c, and 1294 of this Appendix and
    section 1744 of Title 50, Appendix, War and National Defense, and
    enacting provisions set out as notes under sections 1132, 1187,
    1222, 1273 of this Appendix and section 1744 of Title 50, Appendix]
    may be cited as the 'Maritime Security Act of 1996'."

                       SHORT TITLE OF 1980 AMENDMENT                   
      For short title of Pub. L. 96-453, Oct. 15, 1980, 94 Stat. 1997,
    which enacted subchapter XIII of this chapter as the Maritime
    Education and Training Act of 1980, see Short Title note set out
    under section 1295 of this Appendix.

                       SHORT TITLE OF 1976 AMENDMENT                   
      Pub. L. 94-372, Sec. 1, July 31, 1976, 90 Stat. 1042, provided:
    "That this Act [amending section 1152 of this Appendix] may be
    cited as the 'Negotiated Shipbuilding Contracting Act of 1976'."

                       SHORT TITLE OF 1972 AMENDMENT                   
      Pub. L. 92-507, Sec. 8, Oct. 19, 1972, 86 Stat. 917, provided
    that: "This Act [amending sections 1271 to 1276, 1279a, and 1279b
    of this Appendix, repealing sections 1276a, 1277, and 1278 of
    former Title 46, Shipping, and enacting provisions set out as notes
    under sections 1177 and 1273 of this Appendix] may be cited as the
    'Federal Ship Financing Act of 1972'."

                       SHORT TITLE OF 1970 AMENDMENT                   
      Pub. L. 91-469, Sec. 44, Oct. 21, 1970, 84 Stat. 1039, provided
    that: "This Act [enacting section 1507a of Title 15, Commerce and
    Trade, and section 270f of former Title 40, Public Buildings,
    Property, and Works, amending section 5315 of Title 5, Government
    Organization and Employees, sections 985 and 988 of Title 33,
    Navigation and Navigable Waters, sections 1101, 1111, 1119 to 1121,
    1151 to 1155, 1159, 1160, 1171 to 1173, 1175 to 1177, 1204, 1213,
    1222, 1223, 1241, 1244, 1271, 1273 to 1275, and 1294 of this
    Appendix, repealing section 1221 of former Title 46, Shipping, and
    enacting provisions set out as notes under sections 1151, 1173, and
    1177 of this Appendix] may be cited as the 'Merchant Marine Act of
    1970'."

-End-

-CITE-
    46 USC APPENDIX Sec. 1247                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER IX - MISCELLANEOUS PROVISIONS

-HEAD-
    Sec. 1247. Appointment of Secretary as trustee or receiver;
      operation of vessels under court orders; payment of operating
      costs; claims against corporation

-STATUTE-
      (a) Notwithstanding any other provision of law, in any proceeding
    in a bankruptcy, equity, or admiralty court of the United States in
    which a receiver or trustee may be appointed for any corporation
    engaged in the operation of one or more vessels of United States
    registry between the United States and any foreign country, upon
    which the United States holds mortgages, the court, upon finding
    that it will inure to the advantage of the estate and the parties
    in interest and that it will tend to further the purposes of this
    chapter, may constitute and appoint the Secretary of Transportation
    as sole trustee or receiver, subject to the directions and orders
    of the court, and in any such proceeding the appointment of any
    person other than the Secretary as trustee or receiver shall become
    effective upon the ratification thereof by the Secretary without a
    hearing, unless the Secretary shall deem a hearing necessary. In no
    such proceeding shall the Secretary be constituted as trustee or
    receiver without the Secretary's express consent.
      (b) If the court, in any such proceeding, is unwilling to permit
    the trustee or receiver to operate such vessels in such service
    pending the termination of such proceeding, without financial aid
    from the Government, and the Secretary certifies to the court that
    the continued operation of such vessel is, in the opinion of the
    Secretary, essential to the foreign commerce of the United States
    and is reasonably calculated to carry out the purposes and policy
    of this chapter, the court may permit the Secretary to operate the
    vessels subject to the orders of the court and upon terms decreed
    by the court sufficient to protect all the parties in interest, for
    the account of the trustee or receiver, directly or through a
    managing agent or operator employed by the Secretary, if the
    Secretary undertakes to pay all operating losses resulting from
    such operation, and comply with the terms imposed by the court, and
    such vessel shall be considered to be a vessel of the United States
    within the meaning of the Suits in Admiralty Act [46 App. U.S.C.
    741 et seq.]. The Secretary shall have no claim against the
    corporation, its estate, or its assets for the amount of such
    payments, but the Secretary may pay such sums for depreciation as
    it deems reasonable and such other sums as the court may deem just.
    The payment of such sums, and compliance with other terms duly
    imposed by the court, together with the payment of the operating
    losses, shall be in satisfaction of all claims against the
    Secretary on account of the operation of such vessels.

-SOURCE-
    (June 29, 1936, ch. 858, title IX, Sec. 908, as added Pub. L. 95-
    598, title III, Sec. 334, Nov. 6, 1978, 92 Stat. 2680; amended
    Pub. L. 97-31, Sec. 12(134), Aug. 6, 1981, 95 Stat. 165.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Suits in Admiralty Act, referred to in subsec. (b), is act
    Mar. 9, 1920, ch. 95, 41 Stat. 525, as amended, which is classified
    generally to chapter 20 (Sec. 741 et seq.) of this Appendix. For
    complete classification of this Act to the Code, see Short Title
    note set out under section 741 of this Appendix and Tables.

-MISC1-
                                AMENDMENTS                            
      1981 - Subsec. (a). Pub. L. 97-31 substituted "Secretary of
    Transportation" for "Secretary of Commerce".

                              EFFECTIVE DATE                          
      Section effective Oct. 1, 1979, see section 402(a) of Pub. L. 95-
    598, set out as a note preceding section 101 of Title 11,
    Bankruptcy.

-End-

-CITE-
    46 USC APPENDIX Sec. 1248                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER IX - MISCELLANEOUS PROVISIONS

-HEAD-
    Sec. 1248. Enrollment in a sealift readiness program

-STATUTE-
      No vessel may receive construction differential subsidy or
    operating differential subsidy if it is not offered for enrollment
    in a sealift readiness program approved by the Secretary of
    Defense.

-SOURCE-
    (June 29, 1936, ch. 858, title IX, Sec. 909, as added Pub. L. 97-
    35, title XVI, Sec. 1605, Aug. 13, 1981, 95 Stat. 752.)

-End-

-CITE-
    46 USC APPENDIX Sec. 1249                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER IX - MISCELLANEOUS PROVISIONS

-HEAD-
    Sec. 1249. Assistance for small shipyards and maritime communities

-STATUTE-
    (a) Establishment of program
      Subject to the availability of appropriations, the Administrator
    of the Maritime Administration shall establish a program to provide
    assistance to State and local governments - 
        (1) to provide assistance in the form of grants, loans, and
      loan guarantees to small shipyards for capital improvements; and
        (2) for maritime training programs in communities whose
      economies are substantially related to the maritime industry.
    (b) Awards
      In providing assistance under the program, the Administrator
    shall - 
        (1) take into account - 
          (A) the economic circumstances and conditions of maritime
        communities; and
          (B) the local, State, and regional economy in which the
        communities are located; and

        (2) strongly encourage State, local, and regional efforts to
      promote economic development and training that will enhance the
      economic viability of and quality of life in maritime
      communities.
    (c) Use of funds
      Assistance provided under this section may be used - 
        (1) to make capital and related improvements in small shipyards
      located in or near maritime communities;
        (2) to encourage, assist in, or provide training for residents
      of maritime communities that will enhance the economic viability
      of those communities; and
        (3) for such other purposes as the Administrator determines to
      be consistent with and supplemental to such activities.
    (d) Prohibited uses
      Grants awarded under this section may not be used to construct
    buildings or other physical facilities or to acquire land unless
    such use is specifically approved by the Administrator in support
    of subsection (c)(3) of this section.
    (e) Matching requirements
      (1) Federal funding
        Except as provided in paragraph (2), Federal funds for any
      eligible project under this section shall not exceed 75 percent
      of the total cost of such project.
      (2) Exceptions
        (A) Small projects
          Paragraph (1) shall not apply to grants under this section
        for stand alone projects costing not more than $25,000. The
        amount under this subparagraph shall be indexed to the consumer
        price index and modified each fiscal year after the annual
        publication of the consumer price index.
        (B) Reduction in matching requirement
          If the Administrator determines that a proposed project
        merits support and cannot be undertaken without a higher
        percentage of Federal financial assistance, the Administrator
        may award a grant for such project with a lesser matching
        requirement than is described in paragraph (1).
    (f) Application
      (1) In general
        The Administrator shall determine who, as an eligible
      applicant, may submit an application, at such time, in such form,
      and containing such information and assurances as the
      Administrator may require.
      (2) Minimum standards for payment or reimbursement
        Each application submitted under paragraph (1) shall include - 
          (A) a comprehensive description of - 
            (i) the need for the project;
            (ii) the methodology for implementing the project; and
            (iii) any existing programs or arrangements that can be
          used to supplement or leverage assistance under the program.
      (3) Procedural safeguards
        The Administrator, in consultation with the Office of the
      Inspector General, shall issue guidelines to establish
      appropriate accounting, reporting, and review procedures to
      ensure that - 
          (A) grant funds are used for the purposes for which they were
        made available;
          (B) grantees have properly accounted for all expenditures of
        grant funds; and
          (C) grant funds not used for such purposes and amounts not
        obligated or expended are returned.
      (4) Project approval required
        The Administrator may not award a grant under this section
      unless the Administrator determines that - 
          (A) sufficient funding is available to meet the matching
        requirements of subsection (e) of this section;
          (B) the project will be completed without unreasonable delay;
        and
          (C) the recipient has authority to carry out the proposed
        project.
    (g) Audits and examinations
      All grantees under this section shall maintain such records as
    the Administrator may require and make such records available for
    review and audit by the Administrator.
    (h) Small shipyard defined
      In this section, the term "small shipyard" means a shipyard that -
     
        (1) is a small business concern (within the meaning of section
      632 of title 15); and
        (2) does not have more than 600 employees.
    (i) Authorization of appropriations
      There are authorized to be appropriated to the Administrator of
    the Maritime Administration for each of fiscal years 2006 through
    2010 to carry out this section - 
        (1) $5,000,000 for training grants; and
        (2) $25,000,000 for capital and related improvement grants.

-SOURCE-
    (Pub. L. 109-163, div. C, title XXXV, Sec. 3506, Jan. 6, 2006, 119
    Stat. 3553.)

-COD-
                               CODIFICATION                           
      Section was enacted as part of the National Defense Authorization
    Act for Fiscal Year 2006, and not as part of the Merchant Marine
    Act, 1936, which comprises this chapter.

-End-

-CITE-
    46 USC APPENDIX SUBCHAPTER XI - FEDERAL SHIP
           MORTGAGE INSURANCE                              01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER XI - FEDERAL SHIP MORTGAGE INSURANCE

-HEAD-
              SUBCHAPTER XI - FEDERAL SHIP MORTGAGE INSURANCE          

-End-

-CITE-
    46 USC APPENDIX Sec. 1271                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER XI - FEDERAL SHIP MORTGAGE INSURANCE

-HEAD-
    Sec. 1271. Definitions

-STATUTE-
      As used in this subchapter - 
      (a) The term "mortgage" includes - 
        (1) a preferred mortgage as defined in section 31301 of title
      46; and
        (2) a mortgage on a vessel that will become a preferred
      mortgage when filed or recorded under chapter 313 of title
      46.(!1)

      (b) The term "vessel" includes all types, whether in existence or
    under construction, of passenger cargo and combination passenger-
    cargo carrying vessels, tankers, tugs, towboats, barges, dredges
    and ocean thermal energy conversion facilities or plantships which
    are or will be documented under the laws of the United States,
    fishing vessels whose ownership will meet the citizenship
    requirements for documenting vessels in the coastwise trade within
    the meaning of sections 802 and 803 of this Appendix, floating
    drydocks which have a capacity of thirty-five thousand or more
    lifting tons and a beam of one hundred and twenty-five feet or more
    between the wing walls and oceanographic research or instruction or
    pollution treatment, abatement or control vessels;
      (c) The term "obligation" shall mean any note, bond, debenture,
    or other evidence of indebtedness (exclusive of notes or other
    obligations issued by the Secretary or Administrator pursuant to
    section 1275(d) of this Appendix and obligations eligible for
    investment of funds under sections 1272 and 1279a(d) of this
    Appendix), issued for one of the purposes specified in section
    1274(a) (!2) of this Appendix;

      (d) The term "obligor" shall mean any party primarily liable for
    payment of the principal of or interest on any obligation;
      (e) The term "obligee" shall mean the holder of an obligation;
      (f) Actual Cost Defined. - The term "actual cost" means the sum
    of - 
        (1) all amounts paid by or for the account of the obligor as of
      the date on which a determination is made under section
      1279a(g)(1) of this Appendix; and
        (2) all amounts that the Secretary or Administrator reasonably
      estimates that the obligor will become obligated to pay from time
      to time thereafter, for the construction, reconstruction, or
      reconditioning of the vessel, including guarantee fees that will
      become payable under section 1274(e) of this Appendix in
      connection with all obligations issued for construction,
      reconstruction, or reconditioning of the vessel or equipment to
      be delivered, and all obligations issued for the delivered vessel
      or equipment.(!1)

      (g) The term "depreciated actual cost" of a vessel means the
    actual cost of the vessel depreciated on a straightline basis over
    the useful life of the vessel as determined by the Secretary or
    Administrator, not to exceed twenty-five years from the date the
    vessel was delivered by the shipbuilder, or, if the vessel has been
    reconstructed or reconditioned, the actual cost of the vessel
    depreciated on a straightline basis from the date the vessel was
    delivered by the shipbuilder to the date of such reconstruction or
    reconditioning on the basis of the original useful life of the
    vessel and from the date of such reconstruction or reconditioning
    on a straightline basis and on the basis of a useful life of the
    vessel determined by the Secretary or Administrator, plus all
    amounts paid or obligated to be paid for the reconstruction or
    reconditioning depreciated on a straightline basis and on the basis
    of a useful life of the vessel determined by the Secretary or
    Administrator.(!1)
      (h) The terms "construction," "reconstruction," or
    "reconditioning" shall include, but shall not be limited to,
    designing, inspecting, outfitting, and equipping;
      (i) The term "ocean thermal energy conversion facility or
    plantship" means any at-sea facility or vessel, whether mobile,
    floating unmoored, moored, or standing on the seabed, which uses
    temperature differences in ocean water to produce electricity or
    another form of energy capable of being used directly to perform
    work, and includes any equipment installed on such facility or
    vessel to use such electricity or other form of energy to produce,
    process, refine, or manufacture a product, and any cable or
    pipeline used to deliver such electricity, freshwater, or product
    to shore, and all other associated equipment and appurtenances of
    such facility or vessel, to the extent they are located seaward of
    the highwater mark;
      (j) The term "citizen of the Northern Mariana Islands" means - 
        (1) an individual who qualifies as such under section 8 of the
      Schedule on Transitional Matters attached to the Constitution of
      the Northern Mariana Islands; or
        (2) a corporation, partnership, association, or other entity
      formed under the laws of the Northern Mariana Islands, not less
      than 75 percent of the interest in which is owned by individuals
      referred to in paragraph (1) or citizens or nationals of the
      United States, in cases in which "owned" is used in the same
      sense as in sections 802 and 803 of this Appendix;

      (k) The term "fishery facility" means - 
        (1) for operations on land - 
          (A) any structure or appurtenance thereto designed for the
        unloading and receiving from vessels, the processing, the
        holding pending processing, the distribution after processing,
        or the holding pending distribution, of fish from one or more
        fisheries,
          (B) the land necessary for any such structure or appurtenance
        described in subparagraph (A), and
          (C) equipment which is for use in connection with any such
        structure or appurtenance and which is necessary for the
        performance of any function referred to in subparagraph (A);

        (2) for operations other than on land, any vessel built in the
      United States used for, equipped to be used for, or of a type
      which is normally used for, the processing of fish; or
        (3) for aquaculture, including operations on land or elsewhere -
       
          (A) any structure or appurtenance thereto designed for
        aquaculture;
          (B) the land necessary for any such structure or appurtenance
        described in subparagraph (A);
          (C) equipment which is for use in connection with any such
        structure or appurtenance and which is necessary for the
        performance of any function referred to in subparagraph (A);
        and
          (D) any vessel built in the United States used for, equipped
        to be used for, or of a type which is normally used for
        aquaculture;

    but only if such structure, appurtenance, land, equipment, or
    vessel is owned by an individual who is a citizen or national of
    the United States or a citizen of the Northern Mariana Islands or
    by a corporation, partnership, association, or other entity that is
    a citizen of the United States within the meaning of sections 802
    and 803 of this Appendix, and for purposes of applying such
    sections 802 and 803 of this Appendix with respect to this section -
     
        (i) the term "State" as used therein includes any State, the
      District of Columbia, the Commonwealth of Puerto Rico, American
      Samoa, the Virgin Islands of the United States, Guam, the
      Northern Mariana Islands, or any other Commonwealth, territory,
      or possession of the United States; and
        (ii) citizens of the United States must own not less than 75
      percent of the interest in the entity and nationals of the United
      States or citizens of the Northern Mariana Islands shall be
      treated as citizens of the United States in meeting such
      ownership requirement;

      (l) The term "fishing vessel" has the meaning given such term by
    section 1802(11) (!3) of title 16; and any reference in this
    subchapter to a vessel designed principally for commercial use in
    the fishing trade or industry shall be treated as a reference to a
    fishing vessel;

      (m) The term "United States" when used in a geographical context
    with respect to fishing vessels or fishery facilities includes all
    States referred to in subsection (k)(i) of this section.(!1)
      (n) The term "Secretary" means the Secretary of Commerce with
    respect to fishing vessels and fishing facilities as provided by
    this subchapter.(!1)
      (o) The term "eligible export vessel" means a vessel constructed,
    reconstructed, or reconditioned in the United States for use in
    world-wide trade which will, upon delivery or redelivery, be placed
    under or continued to be documented under the laws of a country
    other than the United States.
      (p) The term "Administrator" means the Administrator of the
    Maritime Administration.

-SOURCE-
    (June 29, 1936, ch. 858, title XI, Sec. 1101, as added June 23,
    1938, ch. 600, Sec. 46, 52 Stat. 969; amended Sept. 3, 1954, ch.
    1265, Sec. 1, 68 Stat. 1267; Aug. 7, 1956, ch. 1026, Sec. 1(a),
    (b), 70 Stat. 1087; Pub. L. 86-127, Sec. 1(1), July 31, 1959, 73
    Stat. 272; Pub. L. 86-685, Sec. 1, Sept. 2, 1960, 74 Stat. 733;
    Pub. L. 87-303, Sec. 2, Sept. 26, 1961, 75 Stat. 661; Pub. L. 91-
    469, Sec. 29, Oct. 21, 1970, 84 Stat. 1035; Pub. L. 92-507, Sec.
    1, Oct. 19, 1972, 86 Stat. 909; Pub. L. 96-320, title II, Sec.
    202(a), Aug. 3, 1980, 94 Stat. 992; Pub. L. 96-561, title II, Secs.
    220(1), 238(b), Dec. 22, 1980, 94 Stat. 3291, 3300; Pub. L. 97-31,
    Sec. 12(135), Aug. 6, 1981, 95 Stat. 165; Pub. L. 100-710, title I,
    Sec. 104(d), Nov. 23, 1988, 102 Stat. 4750; Pub. L. 102-567, title
    III, Sec. 304, Oct. 29, 1992, 106 Stat. 4283; Pub. L. 103-160, div.
    A, title XIII, Secs. 1356(1), 1357(b), Nov. 30, 1993, 107 Stat.
    1812, 1815; Pub. L. 104-208, div. A, title I, Sec. 101(a) [title
    II, Sec. 211(b)], Sept. 30, 1996, 110 Stat. 3009, 3009-41; Pub. L.
    104-239, Sec. 11(1), Oct. 8, 1996, 110 Stat. 3134; Pub. L. 108-136,
    div. C, title XXXV, Sec. 3521(b), Nov. 24, 2003, 117 Stat. 1799;
    Pub. L. 109-163, div. C, title XXXV, Sec. 3507(a)(1)(A), (b)(1),
    Jan. 6, 2006, 119 Stat. 3555.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 1274(a) of this Appendix, referred to in subsec. (c), was
    in the original a reference to subsection (a) of section 1104 of
    this title, meaning section 1104 of title XI of the Merchant Marine
    Act, 1936, act June 29, 1936, ch. 858. Section 1104 of that Act was
    renumbered as section 1104A of that Act by Pub. L. 101-380, title
    IV, Sec. 4115(f)(1), Aug. 18, 1990, 104 Stat. 521.
      Section 1802 of title 16, referred to in subsec. (l), was
    subsequently amended, and section 1802(11) no longer defines the
    term "fishing vessel". However, such term is defined elsewhere in
    that section.

-MISC1-
                                AMENDMENTS                            
      2006 - Subsecs. (c), (f)(2), (g). Pub. L. 109-163, Sec.
    3507(a)(1)(A), substituted "Secretary or Administrator" for
    "Secretary" wherever appearing.
      Subsec. (n). Pub. L. 109-163, Sec. 3507(b)(1)(A), substituted
    "subchapter." for "subchapter, and the Secretary of Transportation
    with respect to all other vessels and general shipyard facilities
    (as defined in section 1279e(d)(3) of this Appendix)."
      Subsec. (p). Pub. L. 109-163, Sec. 3507(b)(1)(B), added subsec.
    (p).
      2003 - Subsec. (f). Pub. L. 108-136 inserted heading and amended
    text generally. Prior to amendment, text read as follows: "The term
    'actual cost' of a vessel as of any specified date means the
    aggregate, as determined by the Secretary, of (i) all amounts paid
    by or for the account of the obligor on or before that date, and
    (ii) all amounts which the obligor is then obligated to pay from
    time to time thereafter, for the construction, reconstruction, or
    reconditioning of such vessel;".
      1996 - Subsec. (b). Pub. L. 104-239 struck out "owned by citizens
    of the United States" before semicolon at end.
      Subsec. (l). Pub. L. 104-208 made technical amendment to
    reference in original act which appears in text as reference to
    section 1802(11) of title 16.
      1993 - Subsec. (n). Pub. L. 103-160, Sec. 1357(b), substituted
    "vessels and general shipyard facilities (as defined in section
    1279e(d)(3) of this Appendix)" for "vessels".
      Subsec. (o). Pub. L. 103-160, Sec. 1356(1), added subsec. (o).
      1992 - Subsec. (k)(3). Pub. L. 102-567 added par. (3).
      1988 - Subsec. (a). Pub. L. 100-710 amended subsec. (a)
    generally. Prior to amendment, subsec. (a) read as follows: "The
    term 'mortgage' includes a preferred mortgage as defined in the
    Ship Mortgage Act, 1920, as amended, on any vessel of the United
    States (other than a towboat, barge, scow, lighter, car float,
    canal boat, or tank vessel of less than twenty-five gross tons),
    and a mortgage on such a vessel which will become a preferred
    mortgage when recorded and endorsed as required by the Ship
    Mortgage Act, 1920, as amended;".
      1981 - Subsecs. (c), (f), (g). Pub. L. 97-31, Sec. 12(135)(A),
    struck out "of Commerce" after "Secretary" wherever appearing.
      Subsec. (n). Pub. L. 97-31, Sec. 12(135)(B), added subsec. (n).
      1980 - Subsec. (b). Pub. L. 96-320, Sec. 202(a)(1), inserted
    reference to ocean thermal energy conversion facilities or
    plantships.
      Subsec. (i). Pub. L. 96-320, Sec. 202(a)(2)-(4), added subsec.
    (i).
      Subsecs. (j), (k). Pub. L. 96-561, Sec. 220(1), added subsecs.
    (j) and (k).
      Subsec. (l). Pub. L. 96-561, Sec. 238(b), made technical
    amendment to reference in original act which appears in text as
    reference to section 1802(11) of title 16.
      Pub. L. 96-561, Sec. 220(1), added subsec. (l).
      Subsec. (m). Pub. L. 96-561, Sec. 220(1), added subsec. (m).
      1972 - Subsec. (a). Pub. L. 92-507 reduced the minimum size
    requirement for certain vessels from 200 gross tons to 25 gross
    tons.
      Subsec. (b). Pub. L. 92-507 substituted definition of "vessel"
    for definition of "loan".
      Subsec. (c). Pub. L. 92-507 substituted definition of
    "obligation" for definition of "vessel".
      Subsec. (d). Pub. L. 92-507 substituted definition of "obligor"
    for definition of "mortgagee".
      Subsec. (e). Pub. L. 92-507 substituted definition of "obligee"
    for definition of "mortgagor".
      Subsec. (f). Pub. L. 92-507 struck out proviso and substituted
    obligor for mortgagor or borrower.
      Subsecs. (g), (h). Pub. L. 92-507 added subsecs. (g) and (h).
      1970 - Subsec. (c). Pub. L. 91-469 included oceanographic
    research or instruction vessels in definition of term "vessel".
      1961 - Subsec. (a). Pub. L. 87-303 excluded towboats, barges,
    scows, lighters, car floats, canal boats or tank vessels of less
    than two hundred gross tons.
      1960 - Subsec. (c). Pub. L. 86-685 included floating drydocks
    which have a capacity of 35,000 or more lifting tons and a beam of
    125 feet or more between the wing walls.
      1959 - Subsec. (f). Pub. L. 86-127 inserted in proviso "in
    respect of the unpaid balance of the principal of a mortgage or
    loan" and exception clause.
      1956 - Subsec. (f). Act Aug. 7, 1956, struck out ", except for
    certain special purpose vessels as provided for in subsections (a)
    and (b) of section 1273 of this Appendix," in proviso following
    "That in no event", and struck out "90 per centum of" both before
    and after "75 per centum, or".
      1954 - Act Sept. 3, 1954, defined "loan" and "actual cost" and
    redefined "mortgagee".

                     EFFECTIVE DATE OF 1996 AMENDMENT                 
      Section 101(a) [title II, Sec. 211(b)] of div. A of Pub. L. 104-
    208 provided that the amendment made by that section is effective
    15 days after Oct. 11, 1996.

                     EFFECTIVE DATE OF 1988 AMENDMENT                 
      Amendment by Pub. L. 100-710 effective Jan. 1, 1989, with certain
    exceptions and qualifications, see section 107 of Pub. L. 100-710,
    set out as an Effective Date note under section 30101 of Title 46,
    Shipping.

                     EFFECTIVE DATE OF 1980 AMENDMENT                 
      Section 238(b) of Pub. L. 96-561 provided that the amendment made
    by that section is effective 15 days after Dec. 22, 1980.

                                REGULATIONS                            
      Pub. L. 103-160, div. A, title XIII, Sec. 1362, Nov. 30, 1993,
    107 Stat. 1817, provided that:
      "(a) In General. - Within 90 days after the date of the enactment
    of this Act [Nov. 30, 1993], the Secretary of Transportation shall
    prescribe regulations as necessary to carry out the Secretary's
    responsibilities under this title [probably should be "subtitle"
    meaning subtitle D (Secs. 1351-1363) of title XIII of div. A of
    Pub. L. 103-160, see Tables for classification] (including the
    amendments made by this title [subtitle]).
      "(b) Interim Regulations. - The Secretary of Transportation may
    prescribe interim regulations necessary to carry out this title
    [subtitle] and for accepting applications under title XI of the
    Merchant Marine Act, 1936 [46 App. U.S.C. 1271 et seq.], as amended
    by this title [subtitle]. For that purpose, the Secretary is
    excepted from compliance with the notice and comment requirements
    of section 553 of title 5, United States Code. All regulations
    prescribed under this subsection that are not earlier superseded by
    final rules shall expire 270 days after the date of the enactment
    of this Act."

              SECRETARY OF COMMERCE: FISHING VESSEL INSURANCE          
      Secretary of Commerce authorized to exercise authority in
    relation to issuance of insurance on fishing vessels comparable to
    authority of Secretary of Commerce under this subchapter, see note
    set out under section 1275 of this Appendix.

                             REVIEW OF PROGRAM                         
      Pub. L. 108-136, div. C, title XXXV, Sec. 3528(a), Nov. 24, 2003,
    117 Stat. 1802, which provided that the Secretary of Transportation
    was to conduct a comprehensive assessment of the human capital and
    other resource needs in connection with the loan guarantee program
    under this subchapter and develop an organizational framework for
    the program offices to ensure a clear separation of duties
    established among the loan application, project monitoring, and
    default management functions, was repealed by Pub. L. 109-163, div.
    C, title XXXV, Sec. 3507(c)(4), Jan. 6, 2006, 119 Stat. 3557.

-FOOTNOTE-               

    (!1) So in original. The period probably should be a semicolon.

    (!2) See References in Text note below.

    (!3) See References in Text note below.

-End-

-CITE-
    46 USC APPENDIX Sec. 1272                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER XI - FEDERAL SHIP MORTGAGE INSURANCE

-HEAD-
    Sec. 1272. Federal Ship Financing Fund

-STATUTE-
      There is created a Federal Ship Financing Fund (hereinafter
    referred to as the Fund) which shall be used by the Secretary or
    Administrator as a revolving fund for the purpose of carrying out
    the provisions of this subchapter, and there shall be allocated to
    such fund the sum of $1,000,000 out of funds made available to the
    Secretary or Administrator under the appropriation authorized by
    section 1279 (!1) of this Appendix. Moneys in the Fund shall be
    deposited in the Treasury of the United States to the credit of the
    Fund or invested in bonds or other obligations of, or guaranteed as
    to principal and interest by, the United States.

-SOURCE-
    (June 29, 1936, ch. 858, title XI, Sec. 1102, as added June 23,
    1938, ch. 600, Sec. 46, 52 Stat. 969; amended Sept. 3, 1954, ch.
    1265, Sec. 2, 68 Stat. 1268; Pub. L. 86-123, Sec. 1(2), July 31,
    1959, 73 Stat. 269; Pub. L. 92-507, Sec. 2, Oct. 19, 1972, 86 Stat.
    910; Pub. L. 97-31, Sec. 12(136), Aug. 6, 1981, 95 Stat. 166; Pub.
    L. 109-163, div. C, title XXXV, Sec. 3507(a)(1)(B), Jan. 6, 2006,
    119 Stat. 3555.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 1279 of this Appendix, referred to in text, was repealed
    by Pub. L. 101-225, title III, Sec. 307(7), Dec. 12, 1989, 103
    Stat. 1925.

-MISC1-
                                AMENDMENTS                            
      2006 - Pub. L. 109-163 substituted "Secretary or Administrator"
    for "Secretary" in two places.
      1981 - Pub. L. 97-31 struck out "of Commerce" after "Secretary"
    in two places.
      1972 - Pub. L. 92-507 substituted "Federal Ship Financing Fund"
    for "Federal Ship Mortgage Insurance Fund", and "Fund" for "fund"
    in four places.
      1959 - Pub. L. 86-123 substituted "section 1110" for "section
    1109" of act June 29, 1936, which for purposes of codification has
    been changed to "section 1279 of this Appendix".
      1954 - Act Sept. 3, 1954, omitted provisions relating to the
    purchase of debentures and substituted "Secretary of Commerce" for
    "Commission".

-FOOTNOTE-
    (!1) See References in Text note below.

-End-

-CITE-
    46 USC APPENDIX Sec. 1273                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER XI - FEDERAL SHIP MORTGAGE INSURANCE

-HEAD-
    Sec. 1273. Authorization of Secretary or Administrator to guarantee
      obligations

-STATUTE-
    (a) Principal and interest
      The Secretary or Administrator is authorized to guarantee, and to
    enter into commitments to guarantee, the payment of the interest
    on, and the unpaid balance of the principal of, any obligation
    which is eligible to be guaranteed under this subchapter. A
    guarantee, or commitment to guarantee, made by the Secretary or
    Administrator under this subchapter shall cover 100 percent of the
    amount of the principal and interest of the obligation.
    (b) Security interest
      No obligation shall be guaranteed under this subchapter unless
    the obligor conveys or agrees to convey to the Secretary or
    Administrator such security interest, which may include a mortgage
    or mortgages on a vessel or vessels, as the Secretary or
    Administrator may reasonably require to protect the interest of the
    United States.
    (c) Amount of guarantee; percentage limitation; determination of
      actual cost of vessel
      The Secretary or Administrator shall not guarantee the principal
    of obligations in an amount in excess of 75 per centum, or 87(!1/2)
    per centum, whichever is applicable under section 1274 (!1) of this
    Appendix, of the amount, as determined by the Secretary or
    Administrator which determination shall be conclusive, paid by or
    for the account of the obligor for the construction,
    reconstruction, or reconditioning of a vessel or vessels with
    respect to which a security interest has been conveyed to the
    Secretary or Administrator, unless the obligor creates an escrow
    fund as authorized by section 1279a of this Appendix, in which case
    the Secretary or Administrator may guarantee 75 per centum or 87
    1/2  per centum, whichever is applicable under section 1274 of this
    Appendix, of the actual cost of such vessel or vessels.

    (d) Pledge of United States
      The full faith and credit of the United States is pledged to the
    payment of all guarantees made under this subchapter with respect
    to both principal and interest, including interest, as may be
    provided for in the guarantee, accruing between the date of default
    under a guaranteed obligation and the payment in full of the
    guarantee.
    (e) Proof of obligations
      Any guarantee, or commitment to guarantee, made by the Secretary
    or Administrator under this subchapter shall be conclusive evidence
    of the eligibility of the obligations for such guarantee, and the
    validity of any guarantee, or commitment to guarantee, so made
    shall be incontestable. Notwithstanding an assumption of an
    obligation by the Secretary or Administrator under section 1275(a)
    or (b) of this Appendix, the validity of the guarantee of an
    obligation made by the Secretary or Administrator under this
    subchapter is unaffected and the guarantee remains in full force
    and effect.
    (f) Limitation on outstanding amount
      The aggregate unpaid principal amount of the obligations
    guaranteed under this section and outstanding at any one time shall
    not exceed $12,000,000,000, of which (1) $850,000,000 shall be
    limited to obligations pertaining to guarantees of obligations for
    fishing vessels and fishery facilities made under this subchapter,
    and (2) $3,000,000,000 shall be limited to obligations pertaining
    to guarantees of obligations for eligible export vessels. No
    additional limitations may be imposed on new commitments to
    guarantee loans for any fiscal year, except in such amounts as
    established in advance in annual authorization Acts. No vessel
    eligible for guarantees under this subchapter shall be denied
    eligibility because of its type.
    (g) Restrictions on commitments to guarantee obligations on
      eligible export vessels
      (1) The Secretary or Administrator may not issue a commitment to
    guarantee obligations for an eligible export vessel unless, after
    considering - 
        (A) the status of pending applications for commitments to
      guarantee obligations for vessels documented under the laws of
      the United States and operating or to be operated in the domestic
      or foreign commerce of the United States,
        (B) the economic soundness of the applications referred to in
      subparagraph (A), and
        (C) the amount of guarantee authority available,

    the Secretary or Administrator determines, in the sole discretion
    of the Secretary or Administrator, that the issuance of a
    commitment to guarantee obligations for an eligible export vessel
    will not result in the denial of an economically sound application
    to issue a commitment to guarantee obligations for vessels
    documented under the laws of the United States operating in the
    domestic or foreign commerce of the United States.
      (2) The Secretary or Administrator may not issue commitments to
    guarantee obligations for eligible export vessels under this
    section after the later of - 
        (A) the 5th anniversary of the date on which the Secretary or
      Administrator publishes final regulations setting forth the
      application procedures for the issuance of commitments to
      guarantee obligations for eligible export vessels,
        (B) the last day of any 5-year period in which funding and
      guarantee authority for obligations for eligible export vessels
      have been continuously available, or
        (C) the last date on which those commitments may be issued
      under any treaty or convention entered into after November 30,
      1993, that prohibits guarantee of those obligations.
    (h) Risk categories
      (1) The Secretary or Administrator shall - 
        (A) establish in accordance with this subsection, and update
      annually, a system of risk categories for obligations guaranteed
      under this subchapter, that categorizes the relative risk of
      guarantees made under this subchapter with respect to the risk
      factors set forth in paragraph (3);
        (B) annually determine for each of the risk categories a
      subsidy rate equivalent to the cost of obligations in the
      category, expressed as a percentage of the amount guaranteed
      under this subchapter for obligations in the category; and
        (C) ensure that each risk category is comprised of loans that
      are relatively homogeneous in cost and share characteristics
      predictive of defaults and other costs, given the facts known at
      the time of obligation or commitment, using a risk category
      system that is based on historical analysis of program data and
      statistical evidence concerning the likely costs of defaults or
      other costs that expected to be associated with the loans in the
      category.

      (2)(A) Before making a guarantee under this section for an
    obligation, and annually for projects subject to a guarantee, the
    Secretary or Administrator shall apply the risk factors set forth
    in paragraph (3) to place the obligation in a risk category
    established under paragraph (1)(A).
      (B) The Secretary or Administrator shall consider the aggregate
    amount available to the Secretary or Administrator for making
    guarantees under this subchapter to be reduced by the amount
    determined by multiplying - 
        (i) the amount guaranteed under this subchapter for an
      obligation, by
        (ii) the subsidy rate for the category in which the obligation
      is placed under subparagraph (A) of this paragraph.

      (C) The estimated cost to the Government of a guarantee made by
    the Secretary or Administrator under this subchapter for an
    obligation is deemed to be the amount determined under subparagraph
    (B) for the obligation.
      (D) The Secretary or Administrator may not guarantee obligations
    under this subchapter after the aggregate amount available to the
    Secretary or Administrator under appropriations Acts for the cost
    of loan guarantees is required by subparagraph (B) to be considered
    reduced to zero.
      (3) The risk factors referred to in paragraphs (1) and (2) are
    the following:
        (A) If applicable, the country risk for each eligible export
      vessel financed or to be financed by an obligation.
        (B) The period for which an obligation is guaranteed or to be
      guaranteed.
        (C) The amount of an obligation, which is guaranteed or to be
      guaranteed, in relation to the total cost of the project financed
      or to be financed by the obligation.
        (D) The financial condition of an obligor or applicant for a
      guarantee.
        (E) If applicable, any guarantee related to the project, other
      than the guarantee under this subchapter for which the risk
      factor is applied.
        (F) If applicable, the projected employment of each vessel or
      equipment to be financed with an obligation.
        (G) If applicable, the projected market that will be served by
      each vessel or equipment to be financed with an obligation.
        (H) The collateral provided for a guarantee for an obligation.
        (I) The management and operating experience of an obligor or
      applicant for a guarantee.
        (J) Whether a guarantee under this subchapter is or will be in
      effect during the construction period of the project.
        (K) A risk factor for concentration risk reflecting the risk
      presented by an unduly large percentage of loans outstanding by
      any 1 borrower or group of affiliated borrowers.

      (4) In this subsection, the term "cost" has the meaning given
    that term in section 661a of title 2.
    (i) Priority for national defense tank vessels
      In guaranteeing and entering commitments to guarantee under this
    section, the Administrator shall give priority to guarantees and
    commitments for vessels that are otherwise eligible for a guarantee
    under this section and that are constructed with assistance under
    subtitle D of the Maritime Security Act of 2003.
    (j) Priority for other vessels suitable for service as a naval
      auxiliary
      In guaranteeing and entering commitments to guarantee under this
    section, the Administrator shall, after applying subsection (i) of
    this section, give priority to a guarantee or commitment for a
    vessel that is otherwise eligible for a guarantee under this
    section and that the Secretary of Defense determines - 
        (1) is suitable for service as a naval auxiliary in time of war
      or national emergency; and
        (2) meets a shortfall in sealift capacity or capability.

    The Secretary of Defense shall determine whether a vessel satisfies
    paragraphs (1) and (2) by not later than 30 days after receipt of a
    request from the Administrator for such a determination.

-SOURCE-
    (June 29, 1936, ch. 858, title XI, Sec. 1103, as added June 23,
    1938, ch. 600, Sec. 46, 52 Stat. 969; amended Aug. 15, 1953, ch.
    513, Sec. 1, 67 Stat. 626; Sept. 3, 1954, ch. 1265, Sec. 3, 68
    Stat. 1268; June 25, 1956, ch. 438, 70 Stat. 332; Aug. 7, 1956, ch.
    1026, Sec. 1(a), (c), (d), 70 Stat. 1087; Pub. L. 91-469, Sec. 30,
    Oct. 21, 1970, 84 Stat. 1035; Pub. L. 92-507, Sec. 3, Oct. 19,
    1972, 86 Stat. 910; Pub. L. 93-70, Sec. 3, July 10, 1973, 87 Stat.
    168; Pub. L. 94-127, Sec. 5, Nov. 13, 1975, 89 Stat. 681; Pub. L.
    95-298, Sec. 5, June 26, 1978, 92 Stat. 340; Pub. L. 96-320, title
    II, Sec. 203(b)(1), Aug. 3, 1980, 94 Stat. 994; Pub. L. 96-561,
    title II, Sec. 220(2), Dec. 22, 1980, 94 Stat. 3292; Pub. L. 97-31,
    Sec. 12(136), Aug. 6, 1981, 95 Stat. 166; Pub. L. 97-35, title XVI,
    Sec. 1606(a), (b), Aug. 13, 1981, 95 Stat. 752; Pub. L. 97-424,
    title IV, Sec. 425, Jan. 6, 1983, 96 Stat. 2167; Pub. L. 98-595,
    Sec. 1(1), Oct. 30, 1984, 98 Stat. 3130; Pub. L. 99-509, title V,
    Sec. 5002, Oct. 21, 1986, 100 Stat. 1912; Pub. L. 103-160, div. A,
    title XIII, Sec. 1356(2), (5), Nov. 30, 1993, 107 Stat. 1812, 1814;
    Pub. L. 104-239, Sec. 13(a), Oct. 8, 1996, 110 Stat. 3134; Pub. L.
    108-136, div. A, title X, Sec. 1014(a), div. C, title XXXV, Secs.
    3528(b), 3544, Nov. 24, 2003, 117 Stat. 1591, 1802, 1822; Pub. L.
    109-163, div. C, title XXXV, Sec. 3507(a)(1)(C), (2)(A), (B),
    (b)(2), Jan. 6, 2006, 119 Stat. 3555, 3556.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 1274 of this Appendix, referred to in subsec. (c), was in
    the original a reference to title XI of section 1104 of this title,
    meaning section 1104 of title XI of the Merchant Marine Act, 1936,
    act June 29, 1936, ch. 858. Section 1104 of that Act was renumbered
    as section 1104A of that Act by Pub. L. 101-380, title IV, Sec.
    4115(f)(1), Aug. 18, 1990, 104 Stat. 521.
      The Maritime Security Act of 2003, referred to in subsec. (i), is
    title XXXV of div. C of Pub. L. 108-136, Nov. 24, 2003, 117 Stat.
    1788. Subtitle D of the Act amended this section and enacted
    provisions set out as notes under section 53101 of Title 46,
    Shipping. For complete classification of this Act to the Code, see
    Short Title of 2003 Amendment note set out under section 53101 of
    Title 46 and Tables.

-MISC1-
                                AMENDMENTS                            
      2006 - Subsecs. (a) to (c), (e), (g), (h). Pub. L. 109-163, Sec.
    3507(a)(1)(C), substituted "Secretary or Administrator" for
    "Secretary" wherever appearing.
      Subsec. (i). Pub. L. 109-163, Sec. 3507(a)(2)(A), substituted
    "Administrator" for "Secretary".
      Subsec. (j). Pub. L. 109-163, Sec. 3507(a)(2)(B), (b)(2),
    substituted "Administrator shall" for "Secretary shall" in
    introductory provisions and inserted concluding provisions.
      2003 - Subsec. (h)(1)(A). Pub. L. 108-136, Sec. 3528(b)(1)(A),
    (C), substituted "subsection, and update annually," for
    "subsection" and struck out "and" after semicolon.
      Subsec. (h)(1)(B). Pub. L. 108-136, Sec. 3528(b)(1)(B), (D),
    inserted "annually" before "determine" and substituted "category;
    and" for "category."
      Subsec. (h)(1)(C). Pub. L. 108-136, Sec. 3528(b)(1)(E), added
    subpar. (C).
      Subsec. (h)(2)(A). Pub. L. 108-136, Sec. 3528(b)(2), inserted
    "and annually for projects subject to a guarantee," after
    "obligation,".
      Subsec. (h)(3)(K). Pub. L. 108-136, Sec. 3528(b)(3), added
    subpar. (K).
      Subsec. (i). Pub. L. 108-136, Sec. 1014(a)(1), substituted
    "Priority for national defense tank vessels" for "Priority" in
    heading.
      Pub. L. 108-136, Sec. 3544, added subsec. (i).
      Subsec. (j). Pub. L. 108-136, Sec. 1014(a)(2), added subsec. (j).
      1996 - Subsec. (h). Pub. L. 104-239 added subsec. (h).
      1993 - Subsec. (a). Pub. L. 103-160, Sec. 1356(5), substituted
    "The Secretary is authorized" for "The Secretary, upon application
    by a citizen of the United States, is authorized".
      Subsec. (f). Pub. L. 103-160, Sec. 1356(2)(A), amended first
    sentence generally. Prior to amendment, first sentence read as
    follows: "The aggregate unpaid principal amount of the obligations
    guaranteed under this section and outstanding at any one time shall
    not exceed $12,000,000,000, of which $1,650,000,000 shall be
    limited to obligations pertaining to commerical [sic] demonstration
    ocean thermal energy conversion facilities or plantships guaranteed
    under section 1279c of this Appendix, and of which $850,000,000
    shall be limited to obligations pertaining to guarantees of
    obligations for fishing vessels and fishery facilities made under
    this subchapter."
      Subsec. (g). Pub. L. 103-160, Sec. 1356(2)(B), added subsec. (g).
      1986 - Subsec. (a). Pub. L. 99-509 inserted at end "A guarantee,
    or commitment to guarantee, made by the Secretary under this
    subchapter shall cover 100 percent of the amount of the principal
    and interest of the obligation."
      1984 - Subsec. (e). Pub. L. 98-595 inserted "Notwithstanding an
    assumption of an obligation by the Secretary under section 1275(a)
    or (b) of this Appendix, the validity of the guarantee of an
    obligation made by the Secretary under this subchapter is
    unaffected and the guarantee remains in full force and effect."
      1983 - Subsec. (f). Pub. L. 97-424 inserted provision that no
    additional limitations may be imposed on new commitments to
    guarantee loans for any fiscal year, except in such amounts as
    established in advance in annual authorization Acts, and that no
    vessel eligible for guarantees under this subchapter shall be
    denied eligibility because of its type.
      1981 - Subsecs. (a) to (c), (e). Pub. L. 97-31 struck out "of
    Commerce" after "Secretary" wherever appearing.
      Subsec. (f). Pub. L. 97-35, Sec. 1606(b), increased maximum
    amount from $10,000,000,000 to $12,000,000,000, and substituted
    provisions relating to monetary limitations and criteria for
    obligations, for former pars. (1) and (2) relating to percentage
    limitations and criteria for obligations, and required aggregate
    amount.
      1980 - Subsec. (f). Pub. L. 96-561 added pars. (1) and (2) and
    provision that the aggregate amount reserved for the purposes set
    forth in pars. (1) and (2) equal 10 percent of such sum.
      Pub. L. 96-320, Sec. 203(b), which, effective Oct. 1, 1981,
    substituted "$12,000,000,000, of which $2,000,000,000 shall be
    limited to obligations pertaining to commercial demonstration ocean
    thermal energy conversion facilities or plantships guaranteed
    pursuant to section 1279c of this Appendix" for "$10,000,000,000"
    was later repealed by Pub. L. 97-35. See Repeals note set out
    below.
      1978 - Subsec. (f). Pub. L. 95-298 increased limitation on amount
    of outstanding obligations from $7,000,000,000 to $10,000,000,000.
      1975 - Subsec. (f). Pub. L. 94-127 increased limitation on amount
    of outstanding obligations from $5,000,000,000 to $7,000,000,000.
      1973 - Subsec. (f). Pub. L. 93-70 increased limitation on amount
    of outstanding obligations from $3,000,000,000 to $5,000,000,000.
      1972 - Subsec. (a). Pub. L. 92-507 incorporated provisions of
    former subsecs. (a) and (b) into subsec. (a) and substituted
    provisions authorizing the Secretary to guarantee the payment of
    principal and interest on the obligation for provisions authorizing
    the Secretary to insure a mortgage or a loan.
      Subsec. (b). Pub. L. 92-507 added subsec. (b). Provisions of
    former subsec. (b) were incorporated into subsec. (a).
      Subsec. (c). Pub. L. 92-507 substituted provisions making the
    Secretary's determination of actual cost of the vessel conclusive
    for the purposes of determining the maximum amount which may be
    guaranteed, for provisions making the mortgagee or lender the
    beneficiary of insurance contracts.
      Subsec. (d). Pub. L. 92-507 substituted provisions pledging the
    full faith and credit of the United States for payment of all
    guarantees with interest, for provisions pledging the faith of the
    United States to the payment of principal and interest of each
    mortgage and loan.
      Subsec. (e). Pub. L. 92-507 added subsec. (e). Former subsec. (e)
    redesignated (f).
      Subsec. (f). Pub. L. 92-507 redesignated former subsec. (e) as
    subsec. (f), and in subsec. (f) as so redesignated, substituted
    "obligations guaranteed" for "mortgages and loans insured".
      1970 - Subsec. (e). Pub. L. 91-469 increased limitation on
    outstanding amount of mortgages and loans insured under this
    section from one to three billion dollars.
      1956 - Subsec. (a). Act Aug. 7, 1956, Sec. 1(a), (c), struck out
    "90 per centum of" before "the unpaid balance" and proviso that as
    to special purpose vessels certified essential to national defense,
    Secretary of Commerce may insure 100 per centum of principal and
    interest on eligible mortgages.
      Subsec. (b). Act Aug. 7, 1956, Sec. 1(a), (c), struck out "90 per
    centum of" before "the unpaid balance" and proviso that as to
    special purpose vessels certified essential to national defense,
    Secretary of Commerce may insure 100 per centum of principal and
    interest on eligible loans.
      Subsec. (d). Act Aug. 7, 1956, Sec. 1(d), struck out "the" before
    "interest on and" and "90 per centum of" after such words.
      Act June 25, 1956, pledged the faith of the United States, in the
    case of special-purpose vessels, to the payment of the interest on
    and 100 per centum of the unpaid balance of the principal amount of
    each mortgage and loan insured under this subchapter.
      1954 - Act Sept. 3, 1954, provided for the insurance of mortgages
    by Secretary up to 90 per centum of unpaid balance except that
    vessels essential to national defense may be insured up to 100 per
    centum, to provide for insurance contracts, pledged the United
    States as security, and limited aggregate unpaid principal to
    $1,000,000,000.
      1953 - Act Aug. 15, 1953, designated existing provisions as
    subsec. (a), inserted "90 per centum of the unpaid balance" after
    "provided" and struck out last sentence relating to aggregate
    amount of mortgage obligations, and added subsecs. (b) and (c).

                     EFFECTIVE DATE OF 1996 AMENDMENT                 
      Section 13(b) of Pub. L. 104-239 provided that: "Subsection
    (h)(2) of section 1103 of the Merchant Marine Act, 1936 (46 U.S.C.
    App. 1273), as amended by subsection (a) of this section, shall
    apply to guarantees that the Secretary of Transportation makes or
    commits to make with any amounts that are unobligated on or after
    the date of enactment of this Act [Oct. 8, 1996]."

                     EFFECTIVE DATE OF 1956 AMENDMENT                 
      Act June 25, 1956, provided that the amendment made by that act
    is effective Sept. 3, 1954.

                                  REPEALS                              
      Pub. L. 96-320, title II, Sec. 203(b), Aug. 3, 1980, 94 Stat.
    994, cited as a credit to this section, which amended subsec. (f)
    of this section, effective Oct. 1, 1981, by increasing the
    aggregate unpaid principal amount of obligations guaranteed under
    this section to $12,000,000,000 of which $2,000,000,000 was to be
    limited to obligations pertaining to commercial demonstration ocean
    thermal energy conversion facilities or plantships guaranteed
    pursuant to section 1279c of this Appendix, was repealed by Pub. L.
    97-35, title XVI, Sec. 1606(a), Aug. 13, 1981, 95 Stat. 752.

                     REACTIVATION OF CLOSED SHIPYARDS                 
      Pub. L. 104-324, title XI, Sec. 1139, Oct. 19, 1996, 110 Stat.
    3989, provided that:
      "(a) In General. - The Secretary may issue a guarantee or a
    commitment to guarantee obligations under title XI of the Merchant
    Marine Act, 1936 (46 App. U.S.C. 1271 et seq.), upon such terms as
    the Secretary may prescribe, to assist in the reactivation and
    modernization of any shipyard in the United States that is closed
    on the date of the enactment of this Act [Oct. 19, 1996], if the
    Secretary finds that - 
        "(1) the closed shipyard historically built military vessels
      and responsible entities now seek to reopen it as an
      internationally competitive commercial shipyard;
        "(2)(A) the closed shipyard has been designated by the
      President as a public-private partnership project; or
        "(B) has a reuse plan approved by the Navy in which commercial
      shipbuilding and repair are primary activities and has a
      revolving economic conversion fund approved by the Department of
      Defense; and
        "(3) the State in which the shipyard is located, and each other
      involved State, or a State-chartered agency, is making a
      significant financial investment in the overall cost of
      reactivation and modernization as its contribution to the
      reactivation and modernization project, in addition to the funds
      required by subsection (d)(2) of this section.
      "(b) Waivers. - Notwithstanding any other provision of title XI
    of the Merchant Marine Act, 1936 (46 App. U.S.C. 1271 et seq.), the
    Secretary shall not apply the requirements of section 1104A(d) of
    that Act [46 App. U.S.C. 1274(d)] when issuing a guarantee or a
    commitment to guarantee an obligation under this section.
      "(c) Conditions. - The Secretary shall impose such conditions on
    the issuance of a guarantee or a commitment to guarantee under this
    section as are necessary to protect the interests of the United
    States from the risk of a default. The Secretary shall consider the
    interdependency of such shipyard modernization and reactivation
    projects and related vessel loan guarantee requests pending under
    title XI of the Merchant Marine Act, 1936 (46 App. U.S.C. 1271 et
    seq.) before issuing a guarantee or a commitment to guarantee under
    this section.
      "(d) Funding Provisions. - 
        "(1) The Secretary may not guarantee or commit to guarantee
      obligations under this section that exceed $100,000,000 in the
      aggregate.
        "(2) The amount of appropriated funds required by the Federal
      Credit Reform Act of 1990 (2 U.S.C. 661a et seq.) [2 U.S.C. 661
      et seq.] in advance of the Secretary's issuance of a guarantee or
      a commitment to guarantee under this section shall be provided by
      the State in which the shipyard is located, and other involved
      States, or by a State-chartered agency, and deposited by the
      Secretary in the financing account established under the Federal
      Credit Reform Act of 1990 (2 U.S.C. 661a et seq.) for loan
      guarantees issued by the Secretary under title XI of the Merchant
      Marine Act of 1936 (46 App. U.S.C. 1271 et seq.). No federally
      appropriated funds shall be available for this purpose. The funds
      deposited into that financing account shall be held and applied
      by the Secretary in accordance with the provisions of the Federal
      Credit Reform Act of 1990 (2 U.S.C. 661a et seq.), except that,
      unless the Secretary shall have earlier paid an obligee or been
      required to pay an obligee pursuant to the terms of a loan
      guarantee, the funds deposited in that financing account shall be
      returned, upon the expiration of the Secretary's loan guarantee,
      to the State, States, or State-chartered agency which originally
      provided the funds to the Secretary.
        "(3) Notwithstanding the provisions of any other law or
      regulation, the cost (as that term is defined by the Federal
      Credit Reform Act of 1990 (2 U.S.C. 661a et seq.)) of a guarantee
      or commitment to guarantee issued under this section - 
          "(A) may only be determined with reference to the merits of
        the specific closed shipyard reactivation project which is the
        subject of that guarantee or commitment to guarantee, without
        reference to any other project, type of project, or averaged
        risk; and
          "(B) may not be used in determining the cost of any other
        project, type of project, or averaged risk applicable to
        guarantees or commitments to guarantee issued under title XI of
        the Merchant Marine Act, 1936 (46 App. U.S.C. 1271 et seq.).
      "(e) Sunset. - No commitment to guarantee obligations under this
    section shall be issued by the Secretary after one year after the
    date of enactment of this section [Oct. 19, 1996].
      "(f) Definition. - As used in this section, the term 'Secretary'
    means the Secretary of Transportation."
      Similar provisions were contained in the following prior
    appropriation Act:
      Pub. L. 104-208, div. A, title I, Sec. 101(a) [title VI, Sec.
    618], Sept. 30, 1996, 110 Stat. 3009, 3009-68.

                           ELECTION OF COVERAGE                       
      Section 7 of Pub. L. 92-507 provided that: "Any citizen of the
    United States to whom the Secretary of Commerce issued an approval
    in principle of an application for loan or mortgage insurance or a
    commitment with respect to such insurance under the provisions of
    title XI of the Merchant Marine Act, 1936 [this subchapter], prior
    to the effective date of this Act [Oct. 19, 1972] may elect, with
    respect to the vessels covered by such approval or commitment, to
    be bound either by the provisions of title XI of the Merchant
    Marine Act, 1936 [this subchapter], as in effect prior to the
    effective date of this Act [Oct. 19, 1972] or by the provisions of
    this Act [see Short Title of 1972 Amendment note under section 1245
    of this Appendix]."

-FOOTNOTE-
    (!1) See References in Text note below.

-End-

-CITE-
    46 USC APPENDIX Sec. 1273a                                  01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER XI - FEDERAL SHIP MORTGAGE INSURANCE

-HEAD-
    Sec. 1273a. Certain loan guarantees and commitments

-STATUTE-
      (a) The Administrator of the Maritime Administration may not
    issue a guarantee or commitment to guarantee a loan for the
    construction, reconstruction, or reconditioning of a liner vessel
    under the authority of title XI of the Merchant Marine Act, 1936
    (46 U.S.C. App. 1271 et seq.) after October 14, 1998, unless the
    Chairman of the Federal Maritime Commission certifies that the
    operator of such vessel - 
        (1) has not been found by the Commission to have violated
      section 19 of the Merchant Marine Act, 1920 (46 U.S.C. App. 876),
      or the Foreign Shipping Practices Act of 1988 [46 App. U.S.C.
      1710a], within the previous 5 years; and
        (2) has not been found by the Commission to have committed a
      violation of the Shipping Act of 1984 (46 U.S.C. App. 1701 et
      seq.), which involves unjust or unfair discriminatory treatment
      or undue or unreasonable prejudice or disadvantage with respect
      to a United States shipper, ocean transportation intermediary,
      ocean common carrier, or port within the previous 5 years.

      (b) The Secretary of Commerce may not issue a guarantee or a
    commitment to guarantee a loan for the construction,
    reconstruction, or reconditioning of a fishing vessel under the
    authority of title XI of the Merchant Marine Act, 1936 (46 U.S.C.
    App. 1271 et seq.) if the fishing vessel operator has been - 
        (1) held liable or liable in rem for a civil penalty pursuant
      to section 1858 of title 16 and not paid the penalty;
        (2) found guilty of an offense pursuant to section 1859 of
      title 16 and not paid the assessed fine or served the assessed
      sentence;
        (3) held liable for a civil or criminal penalty pursuant to
      section 1375 of title 16 and not paid the assessed fine or served
      the assessed sentence; or
        (4) held liable for a civil penalty by the Coast Guard pursuant
      to title 33 or 46 and not paid the assessed fine.

-SOURCE-
    (Pub. L. 105-258, title IV, Sec. 401, Oct. 14, 1998, 112 Stat.
    1916; Pub. L. 109-163, div. C, title XXXV, Sec. 3507(c)(1), Jan. 6,
    2006, 119 Stat. 3556.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Merchant Marine Act, 1936, referred to in text, is act June
    29, 1936, ch. 858, 49 Stat. 1985, as amended. Title XI of the Act
    is classified generally to this subchapter (Sec. 1271 et seq.). For
    complete classification of this Act to the Code, see section 1245
    of this Appendix and Tables.
      The Foreign Shipping Practices Act of 1988, referred to in
    subsec. (a)(1), is subtitle A (Secs. 10001-10003) of Pub. L. 100-
    418, title X, Aug. 23, 1988, 102 Stat. 1570, which enacted section
    1710a of this Appendix, amended section 1122b of this Appendix, and
    enacted provisions set out as a note under section 3302 of Title
    46, Shipping. For complete classification of this Act to the Code,
    see Short Title of 1988 Amendment note set out under section 1701
    of this Appendix and Tables.
      The Shipping Act of 1984, referred to in subsec. (a)(2), is Pub.
    L. 98-237, Mar. 20, 1984, 98 Stat. 67, as amended, which is
    classified principally to chapter 36 (Sec. 1701 et seq.) of this
    Appendix. For complete classification of this Act to the Code, see
    Short Title note set out under section 1701 of this Appendix and
    Tables.

-COD-
                               CODIFICATION                           
      Section was enacted as part of the Ocean Shipping Reform Act of
    1998, and not as part of the Merchant Marine Act, 1936, which
    comprises this chapter.

-MISC1-
                                AMENDMENTS                            
      2006 - Subsec. (a). Pub. L. 109-163 substituted "Administrator of
    the Maritime Administration" for "Secretary of Transportation" in
    introductory provisions.

                              EFFECTIVE DATE                          
      Section effective May 1, 1999, see section 2 of Pub. L. 105-258,
    set out as an Effective Date of 1998 Amendment note under section
    1701 of this Appendix.

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      For transfer of authorities, functions, personnel, and assets of
    the Coast Guard, including the authorities and functions of the
    Secretary of Transportation relating thereto, to the Department of
    Homeland Security, and for treatment of related references, see
    sections 468(b), 551(d), 552(d), and 557 of Title 6, Domestic
    Security, and the Department of Homeland Security Reorganization
    Plan of November 25, 2002, as modified, set out as a note under
    section 542 of Title 6.

-End-

-CITE-
    46 USC APPENDIX Sec. 1274                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER XI - FEDERAL SHIP MORTGAGE INSURANCE

-HEAD-
    Sec. 1274. Eligibility for guarantee

-STATUTE-
    (a) Purpose of obligations
      Pursuant to the authority granted under section 1273(a) of this
    Appendix, the Secretary or Administrator, upon such terms as he
    shall prescribe, may guarantee or make a commitment to guarantee,
    payment of the principal of and interest on an obligation which
    aids in - 
        (1) financing, including reimbursement of an obligor for
      expenditures previously made for, construction, reconstruction,
      or reconditioning of a vessel (including an eligible export
      vessel), which is designed principally for research, or for
      commercial use (A) in the coastwise or intercoastal trade; (B) on
      the Great Lakes, or on bays, sounds, rivers, harbors, or inland
      lakes of the United States; (C) in foreign trade as defined in
      section 1244 of this Appendix for purposes of subchapter V of
      this chapter; or (D) as an ocean thermal energy conversion
      facility or plantship; (E) with respect to floating drydocks in
      the construction, reconstruction, reconditioning, or repair of
      vessels; or (F) with respect to an eligible export vessel, in
      world-wide trade; (!1) Provided, however, That no guarantee shall
      be entered into pursuant to this paragraph (a)(1) later than one
      year after delivery, or redelivery in the case of reconstruction
      or reconditioning of any such vessel unless the proceeds of the
      obligation are used to finance the construction, reconstruction,
      or reconditioning of a vessel or vessels, or facilities or
      equipment pertaining to marine operations;

        (2) financing, including reimbursement of an obligor for
      expenditures previously made for, construction, reconstruction,
      reconditioning, or purchase of a vessel or vessels owned by
      citizens or nationals of the United States or citizens of the
      Northern Mariana Islands which are designed principally for
      research, or for commercial use in the fishing trade or industry;
        (3) financing the purchase, reconstruction, or reconditioning
      of vessels or fishery facilities for which obligations were
      guaranteed under this subchapter that, under the provisions of
      section 1275 of this Appendix:
          (A) are vessels or fishery facilities for which obligations
        were accelerated and paid;
          (B) were acquired by the Fund; or
          (C) were sold at foreclosure instituted by the Secretary or
        Administrator;

        (4) financing, in whole or in part, the repayment to the United
      States of any amount of construction-differential subsidy paid
      with respect to a vessel pursuant to subchapter V of this
      chapter;
        (5) refinancing existing obligations issued for one of the
      purposes specified in (1), (2), (3), or (4) whether or not
      guaranteed under this subchapter, including, but not limited to,
      short-term obligations incurred for the purpose of obtaining
      temporary funds with the view to refinancing from time to time;
        (6) financing or refinancing, including, but not limited to,
      the reimbursement of obligors for expenditures previously made
      for, the construction, reconstruction, reconditioning, or
      purchase of fishery facilities; or
        (7) financing or refinancing, including, but not limited to,
      the reimbursement of obligors for expenditures previously made,
      for the purchase of individual fishing quotas in accordance with
      section 1853(d)(4) of title 16.

    Any obligation guaranteed under paragraphs (6) and (7) shall be
    treated, for purposes of this subchapter in the same manner and to
    the same extent as an obligation guaranteed under this subchapter
    which aids in the construction, reconstruction, reconditioning, or
    purchase of a vessel; except with respect to provisions of this
    subchapter that by their nature can only be applied to vessels.
    (b) Contents of obligations
      Obligations guaranteed under this subchapter - 
        (1) shall have an obligor approved by the Secretary or
      Administrator as responsible and possessing the ability,
      experience, financial resources, and other qualifications
      necessary to the adequate operation and maintenance of the vessel
      or vessels which serve as security for the guarantee of the
      Secretary or Administrator;
        (2) subject to the provisions of subsection (c)(1) of this
      section and subsection (i) of this section, shall be in an
      aggregate principal amount which does not exceed 75 per centum of
      the actual cost or depreciated actual cost, as determined by the
      Secretary or Administrator, of the vessel which is used as
      security for the guarantee of the Secretary or Administrator:
      Provided, however, That in the case of a vessel, the size and
      speed of which are approved by the Secretary or Administrator;
      and which is or would have been eligible for mortgage aid for
      construction under section 1159 of this Appendix (or would have
      been eligible for mortgage aid under section 1159 of this
      Appendix except that the vessel was built with the aid of
      construction-differential subsidy and said subsidy has been
      repaid) and in respect of which the minimum downpayment by the
      mortgagor required by that section would be or would have been 12
      1/2  per centum of the cost of such vessel, such obligations may
      be in an amount which does not exceed 87 1/2  per centum of such
      actual cost or depreciated actual cost: Provided, further, That
      the obligations which relate to a barge which is constructed
      without the aid of construction-differential subsidy, or, if so
      subsidized, on which said subsidy has been repaid, may be in an
      aggregate principal amount which does not exceed 87 1/2  per
      centum of the actual cost or depreciated actual cost thereof:
      Provided further, That in the case of a fishing vessel or fishery
      facility, the obligation shall be in an aggregate principal
      amount not to exceed 80 percent of the actual cost or depreciated
      actual cost of the fishing vessel or fishery facility, except
      that no debt may be placed under this proviso through the Federal
      Financing Bank: Provided further, That in the case of an ocean
      thermal energy conversion facility or plantship which is
      constructed without the aid of construction-differential subsidy,
      such obligations may be in an aggregate principal amount which
      does not exceed 87 1/2  percent of the actual cost or depreciated
      actual cost of the facility or plantship: Provided further, That
      in the case of an eligible export vessel, such obligations may be
      in an aggregate principal amount which does not exceed 87 1/2  of
      the actual cost or depreciated actual cost of the eligible export
      vessel;
        (3) shall have maturity dates satisfactory to the Secretary or
      Administrator but, subject to the provisions of paragraph (2) of
      subsection (c) of this section, not to exceed twenty-five years
      from the date of the delivery of the vessel which serves as
      security for the guarantee of the Secretary or Administrator or,
      if the vessel has been reconstructed or reconditioned, not to
      exceed the later of (i) twenty-five years from the date of
      delivery of the vessel and (ii) the remaining years of the useful
      life of the vessel as determined by the Secretary or
      Administrator;
        (4) shall provide for payments by the obligor satisfactory to
      the Secretary or Administrator;
        (5) shall bear interest (exclusive of charges for the guarantee
      and service charges, if any) at rates not to exceed such per
      centum per annum on the unpaid principal as the Secretary or
      Administrator determines to be reasonable, taking into account
      the range of interest rates prevailing in the private market for
      similar loans and the risks assumed by the Secretary or
      Administrator;
        (6) shall provide, or a related agreement shall provide, that
      if the vessel used as security for the guarantee of the Secretary
      or Administrator is a delivered vessel, the vessel shall be in
      class A-1, American Bureau of Shipping, or shall meet such other
      standards as may be acceptable to the Secretary or Administrator,
      with all required certificates, including but not limited to,
      marine inspection certificates of the United States Coast Guard
      or, in the case of an eligible export vessel, of the appropriate
      national flag authorities under a treaty, convention, or other
      international agreement to which the United States is a party,
      with all outstanding requirements and recommendations necessary
      for retention of class accomplished, unless the Secretary or
      Administrator permits a deferment of such repairs, and shall be
      tight, stanch, strong, and well and sufficiently tackled,
      appareled, furnished, and equipped, and in every respect
      seaworthy and in good running condition and repair, and in all
      respects fit for service; and
        (7) may provide, or a related agreement may provide, if the
      vessel used as security for the guarantee of the Administrator is
      a passenger vessel having the tonnage, speed, passenger
      accommodations and other characteristics set forth in subchapter
      V of this chapter, and if the Administrator approves, that the
      sole recourse against the obligor by the United States for any
      payments under the guarantee shall be limited to repossession of
      the vessel and the assignment of insurance claims and that the
      liability of the obligor for any payments of principal and
      interest under the guarantee shall be satisfied and discharged by
      the surrender of the vessel and all right, title, and interest
      therein to the United States: Provided, That the vessel upon
      surrender shall be (i) free and clear of all liens and
      encumbrances whatsoever except the security interest conveyed to
      the Administrator under this subchapter, (ii) in class, and (iii)
      in as good order and condition, ordinary wear and tear excepted,
      as when acquired by the obligor, except that any deficiencies
      with respect to freedom from encumbrances, condition and class
      may, to the extent covered by valid policies of insurance, be
      satisfied by the assignment to the Administrator of claims of the
      obligor under such policies.

    The Secretary may not establish, as a condition of eligibility for
    guarantee under this subchapter, a minimum principal amount for an
    obligation covering the reconstruction or reconditioning of a
    fishing vessel or fishery facility. For purposes of this
    subchapter, the reconstruction or reconditioning of a fishing
    vessel or fishery facility does not include the routine minor
    repair of maintenance of the vessel or facility.
    (c) Security
      (1) The security for the guarantee of an obligation by the
    Secretary or Administrator under this subchapter may relate to more
    than one vessel and may consist of any combination of types of
    security. The aggregate principal amount of obligations which have
    more than one vessel as security for the guarantee of the Secretary
    or Administrator under this subchapter may equal, but not exceed,
    the sum of the principal amount of obligations permissible with
    respect to each vessel.
      (2) If the security for the guarantee of an obligation by the
    Secretary or Administrator under this subchapter relates to more
    than one vessel, such obligation may have the latest maturity date
    permissible under subsection (b) of this section with respect to
    any of such vessels: Provided, That the Secretary or Administrator
    may require such payments of principal, prior to maturity, with
    respect to all related obligations as he deems necessary in order
    to maintain adequate security for his guarantee.
    (d) Restrictions
      (1)(A) No commitment to guarantee, or guarantee of, an obligation
    shall be made by the Administrator unless the Administrator finds
    that the property or project with respect to which the obligation
    will be executed will be economically sound. In making that
    determination, the Administrator shall consider - 
        (i) the need in the particular segment of the maritime industry
      for new or additional capacity, including any impact on existing
      equipment for which a guarantee under this subchapter is in
      effect;
        (ii) the market potential for the employment of the vessel over
      the life of the guarantee;
        (iii) projected revenues and expenses associated with
      employment of the vessel;
        (iv) any charters, contracts of affreightment, transportation
      agreements, or similar agreements or undertakings relevant to the
      employment of the vessel;
        (v) other relevant criteria; and
        (vi) for inland waterways, the need for technical improvements,
      including but not limited to increased fuel efficiency, or
      improved safety.

      (B) No commitment to guarantee, or guarantee of, an obligation
    shall be made by the Secretary of Commerce unless the Secretary
    finds, at or prior to the time such commitment is made or guarantee
    becomes effective, that the property or project with respect to
    which the obligation will be executed will be, in the Secretary's
    opinion, economically sound and in the case of fishing vessels,
    that the purpose of the financing or refinancing is consistent with
    the wise use of the fisheries resources and with the development,
    advancement, management, conservation, and protection of the
    fisheries resources, or with the need for technical improvements
    including but not limited to increased fuel efficiency or improved
    safety.
      (2) No commitment to guarantee, or guarantee of an obligation may
    be made by the Secretary under this subchapter for the purchase of
    a used fishing vessel or used fishery facility unless - 
        (A) the vessel or facility will be reconstructed or
      reconditioned in the United States and will contribute to the
      development of the United States fishing industry; or
        (B) the vessel or facility will be used in the harvesting of
      fish from, or for a purpose described in section 1271(k) of this
      Appendix with respect to, an underutilized fishery.

      (3) No commitment to guarantee, or guarantee of an obligation may
    be made by the Administrator or Administrator (!2) under this
    subchapter for the construction, reconstruction, or reconditioning
    of an eligible export vessel unless - 

        (A) the Administrator or Administrator (!2) finds that the
      construction, reconstruction, or reconditioning of that vessel
      will aid in the transition of United States shipyards to
      commercial activities or will preserve shipbuilding assets that
      would be essential in time of war or national emergency, and
        (B) the owner of the vessel agrees with the Administrator that
      the vessel shall not be transferred to any country designated by
      the Secretary of Defense as a country whose interests are hostile
      to the interests of the United States.

      (4) The Secretary shall promulgate regulations concerning
    circumstances under which waivers of or exceptions to otherwise
    applicable regulatory requirements concerning financial condition
    can be made. The regulations shall require that - 
        (A) the economic soundness requirements set forth in paragraph
      (1)(A) of this subsection are met after the waiver of the
      financial condition requirement; and
        (B) if deemed necessary by the Secretary or Administrator, the
      waiver shall provide for the imposition of other requirements on
      the obligor designed to compensate for any significant increase
      in risk associated with the obligor's failure to meet regulatory
      requirements applicable to financial condition.
    (e) Guarantee fees
      (1) Except as otherwise provided in this subsection, the
    Secretary or Administrator shall prescribe regulations to assess in
    accordance with this subsection a fee for the guarantee of an
    obligation under this subchapter.
      (2)(A) The amount of a fee under this subsection for a guarantee
    is equal to the sum determined by adding the amounts determined
    under subparagraph (B) for the years in which the guarantee is in
    effect.
      (B) The amount referred to in subparagraph (A) for a year is the
    present value (determined by applying the discount rate determined
    under subparagraph (F)) of the amount determined by multiplying - 
        (i) the estimated average unpaid principal amount of the
      obligation that will be outstanding during the year (determined
      in accordance with subparagraph (E)), by
        (ii) the fee rate established under subparagraph (C) for the
      obligation for each year.

      (C) The fee rate referred to in subparagraph (B)(ii) for an
    obligation shall be - 
        (i) in the case of an obligation for a delivered vessel or
      equipment, not less than one-half of 1 percent and not more than
      1 percent, determined by the Secretary or Administrator for the
      obligation under the formula established under subparagraph (D);
      or
        (ii) in the case of an obligation for a vessel to be
      constructed, reconstructed, or reconditioned, or of equipment to
      be delivered, not less than one-quarter of 1 percent and not more
      than one-half of 1 percent, determined by the Secretary or
      Administrator for the obligation under the formula established
      under subparagraph (D).

      (D) The Secretary or Administrator shall establish a formula for
    determining the fee rate for an obligation for purposes of
    subparagraph (C), that - 
        (i) is a sliding scale based on the creditworthiness of the
      obligor;
        (ii) takes into account the security provided for a guarantee
      under this subchapter for the obligation; and
        (iii) uses - 
          (I) in the case of the most creditworthy obligors, the lowest
        rate authorized under subparagraph (C)(i) or (ii), as
        applicable; and
          (II) in the case of the least creditworthy obligors, the
        highest rate authorized under subparagraph (C)(i) or (ii), as
        applicable.

      (E) For purposes of subparagraph (B)(i), the estimated average
    unpaid principal amount does not include the average amount (except
    interest) on deposit in a year in the escrow fund under section
    1279a of this Appendix.
      (F) For purposes of determining present value under subparagraph
    (B) for an obligation, the Secretary or Administrator shall apply a
    discount rate determined by the Secretary of the Treasury taking
    into consideration current market yields on outstanding obligations
    of the United States having periods to maturity comparable to the
    period to maturity for the obligation with respect to which the
    determination of present value is made.
      (3) A fee under this subsection shall be assessed and collected
    not later than the date on which amounts are first paid under an
    obligation with respect to which the fee is assessed.
      (4) A fee paid under this subsection is not refundable. However,
    an obligor shall receive credit for the amount paid for the
    remaining term of the guaranteed obligation if the obligation is
    refinanced and guaranteed under this subchapter after such
    refinancing.
      (5) A fee paid under subsection (e) of this section shall be
    included in the amount of the actual cost of the obligation
    guaranteed under this subchapter and is eligible to be financed
    under this subchapter.
    (f) Investigation of applications
      (1) The Secretary or Administrator shall charge and collect from
    the obligor such amounts as he may deem reasonable for the
    investigation of applications for a guarantee, for the appraisal of
    properties offered as security for a guarantee, for the issuance of
    commitments, for services in connection with the escrow fund
    authorized by section 1279a of this Appendix and for the inspection
    of such properties during construction, reconstruction, or
    reconditioning: Provided, That such charges shall not aggregate
    more than one-half of 1 per centum of the original principal amount
    of the obligations to be guaranteed.
      (2) The Secretary or Administrator may make a determination that
    aspects of an application under this subchapter require independent
    analysis to be conducted by third party experts due to risk factors
    associated with markets, technology, or financial structures. Any
    independent analysis conducted pursuant to this provision shall be
    performed by a party chosen by the Secretary or Administrator.
      (3) Notwithstanding any other provision of this subchapter, the
    Secretary or Administrator may make a determination that an
    application under this subchapter requires additional equity
    because of increased risk factors associated with markets,
    technology, or financial structures.
      (4) The Secretary or Administrator may charge and collect fees to
    cover the costs of independent analysis under paragraph (2).
    Notwithstanding section 3302 of title 31, any fee collected under
    this paragraph shall - 
        (A) be credit as an offsetting collection to the account that
      finances the administration of the loan guarantee program;
        (B) shall (!3) be available for expenditure only to pay the
      costs of activities and services for which the fee is imposed;
      and

        (C) shall (!3) remain available until expended.

      (5) A third party independent analysis conducted under paragraph
    (2) shall be performed by a private sector expert in assessing such
    risk factors who is selected by the Administrator.
    (g) Disposition of moneys
      All moneys received by the Secretary or Administrator under the
    provisions of sections 1271 to 1276 and 1279 (!4) of this Appendix
    shall be deposited in the Fund.

    (h) Additional requirements
      Obligations guaranteed under this subchapter and agreements
    relating thereto shall contain such other provisions with respect
    to the protection of the security interests of the United States
    (including acceleration, assumption, and subrogation provisions and
    the issuance of notes by the obligor to the Secretary or
    Administrator), liens and releases of liens, payments of taxes, and
    such other matters as the Secretary or Administrator may, in his
    discretion, prescribe.
    (i) Limitation on authority to establish uniform percentage
      limitations
      The Secretary or Administrator may not, with respect to - 
        (1) the general 75 percent or less limitation in subsection
      (b)(2) of this section;
        (2) the 87 1/2  percent or less limitation in the 1st, 2nd,
      4th, or 5th proviso to subsection (b)(2) of this section or
      section 1279e(b) of this Appendix; or
        (3) the 80 percent or less limitation in the 3rd proviso to
      such subsection;

    establish by rule, regulation, or procedure any percentage within
    any such limitation that is, or is intended to be, applied
    uniformly to all guarantees or commitments to guarantee made under
    this section that are subject to the limitation.
    (j) Guarantees for eligible export vessels
      (1) Upon receiving an application for a loan guarantee for an
    eligible export vessel, the Administrator shall promptly provide to
    the Secretary of Defense notice of the receipt of the application.
    During the 30-day period beginning on the date on which the
    Secretary of Defense receives such notice, the Secretary of Defense
    may disapprove the loan guarantee based on the assessment of the
    Administrator of the potential use of the vessel in a manner that
    may cause harm to United States national security interests. The
    Secretary of Defense may not disapprove a loan guarantee under this
    section solely on the basis of the type of vessel to be constructed
    with the loan guarantee. The authority of the Administrator to
    disapprove a loan guarantee under this section may not be delegated
    to any official other than a civilian officer of the Department of
    Defense appointed by the President, by and with the advice and
    consent of the Senate.
      (2) The Administrator may not make a loan guarantee disapproved
    by the Secretary of Defense under paragraph (1).
    (k) Monitoring
      The Secretary or Administrator shall monitor the financial
    conditions and operations of the obligor on a regular basis during
    the term of the guarantee. The Secretary or Administrator shall
    document the results of the monitoring on an annual or quarterly
    basis depending upon the condition of the obligor. If the Secretary
    or Administrator determines that the financial condition of the
    obligor warrants additional protections to the Secretary or
    Administrator, then the Secretary or Administrator shall take
    appropriate action under subsection (m) of this section. If the
    Secretary or Administrator determines that the financial condition
    of the obligor jeopardizes its continued ability to perform its
    responsibilities in connection with the guarantee of obligations by
    the Secretary or Administrator, the Secretary or Administrator
    shall make an immediate determination whether default should take
    place and whether further measures described in subsection (m) of
    this section should be taken to protect the interests of the
    Secretary or Administrator while insuring that program objectives
    are met.
    (l) Review of applications
      No commitment to guarantee, or guarantee of, an obligation shall
    be made by the Secretary or Administrator unless the Secretary or
    Administrator certifies that a full and fair consideration of all
    the regulatory requirements, including economic soundness and
    financial requirements applicable to obligors and related parties,
    and a thorough assessment of the technical, economic, and financial
    aspects of the loan application has been made.
    (m) Agreement with obligor
      The Secretary or Administrator shall include provisions in loan
    agreements with obligors that provide additional authority to the
    Secretary or Administrator to take action to limit potential losses
    in connection with defaulted loans or loans that are in jeopardy
    due to the deteriorating financial condition of obligors. If the
    Secretary or Administrator has waived a requirement under
    subsection (d) of this section, the loan agreement shall include
    requirements for additional payments, collateral, or equity
    contributions to meet such waived requirement upon the occurrence
    of verifiable conditions indicating that the obligor's financial
    condition enables the obligor to meet the waived requirement.
    (n) Decision period
      (1) In general
        The Administrator shall approve or deny an application for a
      loan guarantee under this subchapter within 270 days after the
      date on which the signed application is received by the
      Administrator or Administrator.(!2)
      (2) Extension
        Upon request by an applicant, the Administrator or
      Administrator (!2) may extend the 270-day period in paragraph (1)
      to a date not later than 2 years after the date on which the
      signed application for the loan guarantee was received by the
      Administrator or Administrator.(!2)

-SOURCE-
    (June 29, 1936, ch. 858, title XI, Sec. 1104A, formerly Sec. 1104,
    as added June 23, 1938, ch. 600, Sec. 46, 52 Stat. 970; amended
    Aug. 4, 1939, ch. 417, Sec. 14, 53 Stat. 1187; Sept. 28, 1950, ch.
    1093, Sec. 4, 64 Stat. 1078; Aug. 15, 1953, ch. 513, Sec. 2, 67
    Stat. 626; Sept. 3, 1954, ch. 1265, Sec. 4, 68 Stat. 1269; Pub. L.
    86-123, Secs. 1(3), 2, July 31, 1959, 73 Stat. 269, 271; Pub. L. 86-
    127, Sec. 1(3), (4), July 31, 1959, 73 Stat. 273; Pub. L. 86-518,
    Sec. 1, June 12, 1960, 74 Stat. 216; Pub. L. 86-685, Secs. 2, 3,
    Sept. 2, 1960, 74 Stat. 733; Pub. L. 90-341, June 15, 1968, 82
    Stat. 180; Pub. L. 91-469, Secs. 31, 32, Oct. 21, 1970, 84 Stat.
    1035; Pub. L. 92-507, Sec. 3, Oct. 19, 1972, 86 Stat. 910; Pub. L.
    95-257, Apr. 7, 1978, 92 Stat. 194; Pub. L. 96-320, title II, Sec.
    202(b), (c), Aug. 3, 1980, 94 Stat. 992; Pub. L. 96-561, title II,
    Sec. 220(3), Dec. 22, 1980, 94 Stat. 3292; Pub. L. 97-31, Sec.
    12(136), Aug. 6, 1981, 95 Stat. 166; Pub. L. 97-35, title XVI, Sec.
    1606(c), (d), Aug. 13, 1981, 95 Stat. 752; Pub. L. 98-595, Sec.
    1(2)-(7), (12), Oct. 30, 1984, 98 Stat. 3130, 3131; Pub. L. 99-509,
    title V, Sec. 5003, Oct. 21, 1986, 100 Stat. 1912; renumbered Sec.
    1104A, Pub. L. 101-380, title IV, Sec. 4115(f)(1), Aug. 18, 1990,
    104 Stat. 521; Pub. L. 103-160, div. A, title XIII, Sec. 1356(3),
    Nov. 30, 1993, 107 Stat. 1813; Pub. L. 104-208, div. A, title I,
    Sec. 101(a) [title II, Sec. 211(b)], Sept. 30, 1996, 110 Stat.
    3009, 3009-41; Pub. L. 104-239, Sec. 13(c), Oct. 8, 1996, 110 Stat.
    3136; Pub. L. 104-297, title III, Sec. 302(a), Oct. 11, 1996, 110
    Stat. 3615; Pub. L. 107-314, div. C, title XXXV, Sec. 3503, Dec. 2,
    2002, 116 Stat. 2753; Pub. L. 108-136, div. C, title XXXV, Secs.
    3522, 3523, 3525, 3526, Nov. 24, 2003, 117 Stat. 1800, 1801; Pub.
    L. 109-163, div. C, title XXXV, Sec. 3507(a)(1)(D), (2)(C)-(G),
    (b)(3)-(7), Jan. 6, 2006, 119 Stat. 3555, 3556.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Sections 1276 and 1279 of this Appendix, referred to in subsec.
    (g), were repealed by Pub. L. 101-225, title III, Sec. 307(7), Dec.
    12, 1989, 103 Stat. 1925.

-MISC1-
                                AMENDMENTS                            
      2006 - Subsec. (a). Pub. L. 109-163, Sec. 3507(a)(1)(D),
    substituted "Secretary or Administrator" for "Secretary" in
    introductory provisions and in par. (3)(C).
      Subsec. (b)(1) to (6). Pub. L. 109-163, Sec. 3507(a)(1)(D),
    substituted "Secretary or Administrator" for "Secretary" wherever
    appearing.
      Subsec. (b)(7). Pub. L. 109-163, Sec. 3507(a)(2)(C), substituted
    "Administrator" for "Secretary" wherever appearing.
      Subsec. (c). Pub. L. 109-163, Sec. 3507(a)(1)(D), substituted
    "Secretary or Administrator" for "Secretary" wherever appearing.
      Subsec. (d)(1)(A). Pub. L. 109-163, Sec. 3507(a)(2)(D),
    (b)(3)(A), in introductory provisions, substituted "made by the
    Administrator" for "made by the Secretary of Transportation",
    "unless the Administrator" for "unless the Secretary", and
    "Administrator shall" for "Secretary shall".
      Subsec. (d)(3). Pub. L. 109-163, Sec. 3507(a)(2)(E), substituted
    "Administrator" for "Secretary" in introductory provisions and in
    subpar. (A).
      Pub. L. 109-163, Sec. 3507(a)(1)(D), substituted "Secretary or
    Administrator" for "Secretary" in introductory provisions and in
    subpar. (A).
      Subsec. (d)(3)(B). Pub. L. 109-163, Sec. 3507(b)(3)(A),
    substituted "Administrator" for "Secretary of Transportation".
      Subsec. (d)(4)(B). Pub. L. 109-163, Sec. 3507(b)(3)(B), (C),
    substituted "if deemed necessary by the Secretary or Administrator,
    the waiver" for "the waiver" and "any significant increase in" for
    "the increased".
      Subsec. (e)(1). Pub. L. 109-163, Sec. 3507(a)(1)(D), substituted
    "Secretary or Administrator" for "Secretary".
      Subsec. (e)(2). Pub. L. 109-163, Sec. 3507(a)(1)(D), substituted
    "Secretary or Administrator" for "Secretary" in subpars. (C)(i),
    (ii) and (D) and "Secretary or Administrator shall" for "Secretary
    shall" in subpar. (F).
      Subsec. (f). Pub. L. 109-163, Sec. 3507(a)(1)(D), substituted
    "Secretary or Administrator" for "Secretary" wherever appearing.
      Subsec. (f)(2). Pub. L. 109-163, Sec. 3507(b)(4)(A), substituted
    "or financial structures" for "financial structures, or other risk
    factors identified by the Secretary or Administrator".
      Subsec. (f)(3). Pub. L. 109-163, Sec. 3507(b)(4)(B), substituted
    "or financial structures" for "financial structures, or other risk
    factors identified by the Secretary or Administrator".
      Subsec. (f)(5). Pub. L. 109-163, Sec. 3507(b)(4)(C), added par.
    (5).
      Subsecs. (g) to (i). Pub. L. 109-163, Sec. 3507(a)(1)(D),
    substituted "Secretary or Administrator" for "Secretary" wherever
    appearing.
      Subsec. (j)(1). Pub. L. 109-163, Sec. 3507(a)(2)(F), substituted
    "Administrator shall promptly provide" for "Secretary shall
    promptly provide", "Administrator of the potential use" for
    "Secretary of the potential use", and "authority of the
    Administrator to disapprove a loan" for "authority of the Secretary
    to disapprove a loan'.
      Subsec. (j)(2). Pub. L. 109-163, Sec. 3507(b)(5), substituted
    "The Administrator" for "The Secretary of Transportation".
      Subsecs. (k), (l). Pub. L. 109-163, Sec. 3507(a)(1)(D),
    substituted "Secretary or Administrator" for "Secretary" wherever
    appearing.
      Subsec. (m). Pub. L. 109-163, Sec. 3507(b)(6), substituted "If
    the Secretary or Administrator has waived a requirement under
    subsection (d) of this section, the loan agreement shall include
    requirements for additional payments, collateral, or equity
    contributions to meet such waived requirement upon the occurrence
    of verifiable conditions indicating that the obligor's financial
    condition enables the obligor to meet the waived requirement." for
    "Provisions that the Secretary or Administrator shall include in
    loan agreements include requirements for additional collateral or
    greater equity contributions that are effective upon the occurrence
    of verifiable conditions relating to the obligors financial
    condition or the status of the vessel or shipyard project."
      Pub. L. 109-163, Sec. 3507(a)(1)(D), substituted "Secretary or
    Administrator" for "Secretary" wherever appearing.
      Subsec. (n)(1). Pub. L. 109-163, Sec. 3507(b)(7), substituted
    "The Administrator" for "The Secretary of Transportation".
      Pub. L. 109-163, Sec. 3507(a)(2)(G), substituted "received by the
    Administrator" for "received by the Secretary".
      Pub. L. 109-163, Sec. 3507(a)(1)(D), substituted "received by the
    Secretary or Administrator" for "received by the Secretary".
      Subsec. (n)(2). Pub. L. 109-163, Sec. 3507(a)(2)(G), substituted
    "Administrator" for "Secretary" in two places.
      Pub. L. 109-163, Sec. 3507(a)(1)(D), substituted "Secretary or
    Administrator" for "Secretary" in two places.
      2003 - Subsec. (d)(4). Pub. L. 108-136, Sec. 3522, added par.
    (4). Former par. (4) redesignated (5).
      Subsec. (d)(5). Pub. L. 108-136, Sec. 3526(1), struck out par.
    (5) which read as follows: "The Secretary may obtain independent
    analysis of an application for a guarantee or commitment to
    guarantee under this subchapter."
      Pub. L. 108-136, Sec. 3522, redesignated par. (4) as (5).
      Subsec. (f). Pub. L. 108-136, Sec. 3526(2), designated existing
    provisions as par. (1), struck out "(including for obtaining
    independent analysis under subsection (d)(4) of this section)"
    after "applications for a guarantee", and added pars. (2) to (4).
      Subsec. (k). Pub. L. 108-136, Sec. 3523(a), added subsec. (k).
      Subsecs. (l), (m). Pub. L. 108-136, Sec. 3523(b), added subsecs.
    (l) and (m).
      Subsec. (n). Pub. L. 108-136, Sec. 3525, added subsec. (n).
      2002 - Subsec. (d)(4). Pub. L. 107-314, Sec. 3503(1), added par.
    (4).
      Subsec. (f). Pub. L. 107-314, Sec. 3503(2), inserted "(including
    for obtaining independent analysis under subsection (d)(4) of this
    section)" after "applications for a guarantee".
      1996 - Subsec. (a). Pub. L. 104-297, Sec. 302(a)(4), substituted
    "paragraphs (6) and (7)" for "paragraph (6)" in concluding
    provisions.
      Subsec. (a)(7). Pub. L. 104-208 made technical amendment to
    reference in original act which appears in text as reference to
    section 1853(d)(4) of title 16.
      Pub. L. 104-297, Sec. 302(a)(1)-(3), added par. (7).
      Subsec. (b)(2). Pub. L. 104-297, Sec. 302(a)(5), substituted "not
    to exceed" for "equal to" in third proviso.
      Subsec. (e). Pub. L. 104-239 amended subsec. (e) generally. Prior
    to amendment, subsec. (e) authorized Secretary to fix fees,
    calculate fee amount, prorate principal amount of obligation in
    certain cases, and compute and pay fees under regulations
    prescribed by Secretary, which regulations were to provide a
    formula to determine creditworthiness of obligors.
      1993 - Subsec. (a)(1). Pub. L. 103-160, Sec. 1356(3)(A), amended
    provisions before proviso generally. Prior to amendment, such
    provisions read as follows: "financing, including reimbursement of
    an obligor for expenditures previously made for, construction,
    reconstruction, or reconditioning of a vessel or vessels owned by
    citizens of the United States which are designed principally for
    research, or for commercial use (A) in the coastwise or
    intercoastal trade; (B) on the Great Lakes, or on bays, sounds,
    rivers, harbors, or inland lakes of the United States; (C) in
    foreign trade as defined in section 1244 of this Appendix for
    purposes of subchapter V of this chapter;; or (D) as an ocean
    thermal energy conversion facility or plantship; or (E) with
    respect to floating drydocks, in the construction, reconstruction,
    reconditioning, or repair of vessels:".
      Subsec. (b)(2). Pub. L. 103-160, Sec. 1356(3)(B), substituted
    "subject to the provisions of subsection (c)(1) of this section and
    subsection (i) of this section," for "subject to the provisions of
    paragraph (1) of subsection (c) of this section," and inserted
    before semicolon at end ": Provided further, That in the case of an
    eligible export vessel, such obligations may be in an aggregate
    principal amount which does not exceed 87 1/2  of the actual cost
    or depreciated actual cost of the eligible export vessel".
      Subsec. (b)(6). Pub. L. 103-160, Sec. 1356(3)(C), inserted "or,
    in the case of an eligible export vessel, of the appropriate
    national flag authorities under a treaty, convention, or other
    international agreement to which the United States is a party"
    after "United States Coast Guard".
      Subsec. (d)(3). Pub. L. 103-160, Sec. 1356(3)(D), added par. (3).
      Subsecs. (i), (j). Pub. L. 103-160, Sec. 1356(3)(E), added
    subsecs. (i) and (j).
      1986 - Subsec. (b)(2). Pub. L. 99-509 substituted "That in the
    case of a fishing vessel or fishery facility, the obligation shall
    be in an aggregate principal amount equal to 80 percent of the
    actual cost or depreciated actual cost of the fishing vessel or
    fishery facility, except that no debt may be placed under this
    proviso through the Federal Financing Bank" for "That in the case
    of any vessel to be used in the fishing trade or industry, such
    obligations may be in an aggregate principal amount which does not
    exceed 87 1/2  per centum of the actual cost or depreciated actual
    cost of the vessel".
      1984 - Subsec. (a)(3). Pub. L. 98-595, Sec. 1(2), substituted
    provisions relating to financing of purchase, reconstruction or
    reconditioning of designated vessels or fishery facilities for
    former provisions relating to financing of vessels acquired by the
    Federal Ship Financing Fund pursuant to section 1275 of this
    Appendix.
      Subsec. (a)(5). Pub. L. 98-595, Sec. 1(3), inserted "or" after
    "time".
      Subsec. (a)(6). Pub. L. 98-595, Sec. 1(4), substituted a period
    for "; or" after "facilities".
      Subsec. (a)(7). Pub. L. 98-595, Sec. 1(5), struck out par. (7)
    which related to the financing of the purchase of fishing vessels
    or fishery facilities sold at foreclosure instituted by the
    Secretary.
      Subsec. (d)(1). Pub. L. 98-595, Sec. 1(6), substituted provisions
    establishing economical soundness as a requirement for a commitment
    by the Secretary and detailing factors for evaluation for former
    provisions which established the general criteria of economical
    soundness and wise use of fishery resources.
      Subsec. (e). Pub. L. 98-595, Sec. 1(12), inserted "Such
    regulations shall provide a formula for determining the
    creditworthiness of obligors under which the most creditworthy
    obligors pay a fee computed on the lowest allowable percentage and
    the least creditworthy obligors pay a fee which may be computed on
    the highest allowable percentage (the range of creditworthiness to
    be based on obligors which have actually issued guaranteed
    obligations)."
      Subsec. (h). Pub. L. 98-595, Sec. 1(7), inserted ", assumption,"
    after "acceleration".
      1981 - Subsecs. (a) to (c). Pub. L. 97-31 struck out "of
    Commerce" after "Secretary" wherever appearing.
      Subsec. (d). Pub. L. 97-35, Sec. 1606(c), in par. (1) substituted
    "No" for "Except as provided in paragraph (2), no", struck out par.
    (2) which related to application of par. (1), and redesignated par.
    (3) as (2).
      Pub. L. 97-31 struck out "of Commerce" after "Secretary" wherever
    appearing.
      Subsecs. (e), (f). Pub. L. 97-31 struck out "of Commerce" after
    "Secretary" wherever appearing.
      Subsec. (g). Pub. L. 97-35, Sec. 1606(d), designated par. (1) as
    entire provision, and struck out par. (2) which required the
    Secretary to establish subfunds within the Fund.
      Pub. L. 97-31 struck out "of Commerce" after "Secretary".
      Subsec. (h). Pub. L. 97-31 struck out "of Commerce" after
    "Secretary" in two places.
      1980 - Subsec. (a). Pub. L. 96-561, Sec. 220(3)(A)(vi), inserted
    provision after par. (7) that any obligation guaranteed under par.
    (6) be treated, for purposes of this subchapter, in the same manner
    and to the same extent as an obligation guaranteed under this
    subchapter which aids in the construction, reconstruction,
    reconditioning, or purchase of a vessel, except with respect to
    provisions of this subchapter that by their nature can only be
    applied to vessels.
      Subsec. (a)(1). Pub. L. 96-561, Sec. 220(3)(A)(i), (ii),
    substituted "; or (D)" for "(D) in the fishing trade or industry;
    (E)" and redesignated cl. (F) as (E).
      Pub. L. 96-320, Sec. 202(b), redesignated cl. (E), relating to
    floating drydocks, as cl. (F) and added cl. (E) relating to ocean
    thermal energy conversion facilities or plantships.
      Subsec. (a)(2). Pub. L. 96-561, Sec. 220(3)(A)(iii), added par.
    (2) and redesignated former par. (2) as (3).
      Subsec. (a)(3). Pub. L. 96-561, Sec. 220(3)(A)(iii), redesignated
    former par. (2) as (3). Former par. (3) redesignated (4).
      Subsec. (a)(4). Pub. L. 96-561, Sec. 220(3)(A)(iii), (iv),
    redesignated former par. (3) as (4) and substituted "this chapter;"
    for "this chapter; or". Former par. (4) redesignated (5).
      Subsec. (a)(5). Pub. L. 96-561, Sec. 220(3)(A)(iii), (v),
    redesignated former par. (4) as (5) and substituted "(3), or (4)"
    for "or (3)" and a semicolon for the period at end.
      Subsec. (a)(6), (7). Pub. L. 96-561, Sec. 220(3)(A)(vi), added
    pars. (6) and (7).
      Subsec. (b). Pub. L. 96-561, Sec. 220(3)(B), inserted provision
    after par. (7) prohibiting the Secretary from establishing, as a
    condition of eligibility for guarantee, a minimum principal amount
    for an obligation covering the reconstruction or reconditioning of
    a fishing vessel or fishery facility, which reconstruction or
    reconditioning does not include the routine minor repair or
    maintenance of the vessel or facility.
      Subsec. (b)(2). Pub. L. 96-320, Sec. 202(c), inserted proviso
    that in the case of an ocean thermal energy conversion facility or
    plantship which is constructed without the aid of construction-
    differential subsidy, the obligations may be in an aggregate
    principal amount which does not exceed 87 1/2  percent of the
    actual cost or depreciated actual cost of the facility or
    plantship.
      Subsec. (d). Pub. L. 96-561, Sec. 220(3)(C), designated existing
    provision as par. (1), substituted "Except as provided in paragraph
    (2), no" for "No", and added pars. (2) and (3).
      Subsec. (g). Pub. L. 96-561, Sec. 220(3)(D), designated existing
    provision as par. (1) and added par. (2).
      1978 - Subsec. (b)(2). Pub. L. 95-257 inserted proviso relating
    to vessels to be used in the fishing trade or industry.
      1972 - Subsec. (a). Pub. L. 92-507 substituted provisions
    relating to the purposes for which guarantees may be made, for
    provisions relating to the eligibility of mortgages for insurance.
      Subsec. (b). Pub. L. 92-507 substituted provisions relating to
    the eligibility requirements of obligations for guarantee, for
    provisions relating to the eligibility of loans for insurance.
      Subsec. (c). Pub. L. 92-507 substituted provisions that security
    for guarantee may relate to more than one vessel, that security may
    consist of any combination of types of security, and that an
    obligation may have the latest maturity date permissible for any
    vessel which serves as security for the government guarantee of the
    related obligations, for provisions relating to the prior
    determination of the soundness of the property or project for
    mortgage or loan.
      Subsec. (d). Pub. L. 92-507 incorporated provisions of former
    subsec. (c) into subsec. (d) and extended provisions of this
    subchapter to commercial fishing vessels. Provisions of former
    subsec. (d) were incorporated into subsec. (e).
      Subsec. (e). Pub. L. 92-507 incorporated provisions of former
    subsec. (d) into subsec. (e) and substituted therein provisions
    authorizing the Secretary to fix a fee for the guarantee of
    obligations and providing separate formulae for delivered vessels
    and vessels under construction, for provisions authorizing the
    Secretary to fix a premium charge for the insurance of mortgages
    and loans and providing separate formulae for mortgages and loans
    by reference to section 1273 of this Appendix. Provisions of former
    subsec. (e) were incorporated into subsec. (f).
      Subsec. (f). Pub. L. 92-507 incorporated provisions of former
    subsec. (e), relating to the collection of investigation fees from
    applicants for insurance into subsec. (f), and substituted therefor
    provisions relating to the collection of investigation fees from
    applicants for guarantee. Provisions of former subsec. (f)
    incorporated into subsec. (g).
      Subsec. (g). Pub. L. 92-507 incorporated provisions of former
    subsec. (f) into subsec. (g).
      Subsec. (h). Pub. L. 92-507 added subsec. (h).
      1970 - Subsec. (a)(8). Pub. L. 91-469, Sec. 31, inserted
    "research, or for" before "commercial use".
      Subsec. (b). Pub. L. 91-469, Sec. 32, inserted in par. (2)
    "research, or for" before "commercial use", substituted in par. (4)
    "not exceed" for "be less than", and inserted in par. (4)
    restriction that advance and principal amount of other advances
    under insured loans outstanding at time of advance shall not exceed
    87 1/2  per centum of actual cost of vessel where in the case of
    the approved vessel the minimum downpayment by the mortgagor
    required by section 1159 of this Appendix would be 12 1/2  per
    centum of cost of vessel.
      1968 - Subsec. (a)(5). Pub. L. 90-341 substituted provision that
    the maximum interest rates allowed on ship mortgages eligible for
    insurance coverage be at such rates on the outstanding principle
    obligation as determined by the Secretary of Commerce to be
    reasonable, taking into account the prevailing rates and the risks
    assumed by the Department of Commerce, for provision setting a
    maximum of 5 per centum per annum, or 6 per centum per annum when
    the Secretary determined that in certain areas or under special
    circumstances the mortgage or lending market demanded it.
      1960 - Subsec. (a)(3). Pub. L. 86-518 substituted "twenty-five
    years" for "twenty years".
      Subsec. (a)(8). Pub. L. 86-685, Sec. 2, inserted cl. (e).
      Subsec. (b)(2). Pub. L. 86-685, Sec. 3, inserted cl. (e).
      1959 - Subsec. (a)(2). Pub. L. 86-123, Sec. 2, substituted "and
    which is, or in the case of a vessel to be reconstructed or
    reconditioned would have been, eligible for mortgage aid for
    construction" for "which is eligible for mortgage aid" in proviso.
      Subsec. (d). Pub. L. 86-127, Sec. 1(3), inserted "excluding the
    average amount (except interest) on deposit in an escrow fund
    created under section 1279a of this Appendix" in two places.
      Subsec. (e). Pub. L. 86-127, Sec. 1(4), inserted "for services in
    connection with the escrow fund authorized by section 1279a of this
    Appendix" after "commitments" .
      Subsec. (f). Pub. L. 86-123, Sec. 1(3), substituted "sections
    1101 to 1110" for "sections 1101 to 1109" of Act June 29, 1936,
    which, for purposes of codification, has been changed to "sections
    1271 to 1279 of this Appendix".
      1954 - Act Sept. 3, 1954, provided standards of eligibility for
    both mortgages and loans, set up restrictions, and provided for
    premium charges.
      1953 - Subsec. (a)(2). Act Aug. 15, 1953, Sec. 2(1), inserted
    "or, in the case of vessels, constructed under subchapter V of this
    title, involved in an obligation in a principal amount which does
    not exceed 75 per centum of the cost of the vessel (exclusive of
    construction-differential subsidy and cost of national-defense
    features)".
      Subsec. (a)(8). Act Aug. 15, 1953, Sec. 2(2), (3), inserted
    "construction of vessels under subchapter V of this chapter" in
    introductory provisions, and in cl. (c) substituted "in foreign
    trade" for provisions relating to specified trade.
      1950 - Subsec. (a)(2), (7), (8). Act Sept. 28, 1950, inserted
    provisions concerning purchase of vessels for use on the Great
    Lakes pursuant to the Merchant Ship Sales Act of 1946.
      1939 - Subsec. (a)(8). Act Aug. 4, 1939, included mortgages to
    secure new loans or advances made to aid financing of vessels
    designed for use in the fishing trade or industry.

                     EFFECTIVE DATE OF 1996 AMENDMENT                 
      Section 101(a) [title II, Sec. 211(b)] of div. A of Pub. L. 104-
    208 provided that the amendment made by that section is effective
    15 days after Oct. 11, 1996.

                     EFFECTIVE DATE OF 1960 AMENDMENT                 
      Amendment by Pub. L. 86-518 applicable only to vessels delivered
    by the shipbuilder on or after Jan. 1, 1946, and with respect to
    such vessels shall become effective on Jan. 1, 1960, and with
    respect to vessels delivered by the shipbuilder before Jan. 1,
    1946, the provisions of this chapter existing immediately before
    June 12, 1960, shall continue in effect, see section 8(a) of Pub.
    L. 86-518, set out as a note under section 1125 of this Appendix.

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      For transfer of authorities, functions, personnel, and assets of
    the Coast Guard, including the authorities and functions of the
    Secretary of Transportation relating thereto, to the Department of
    Homeland Security, and for treatment of related references, see
    sections 468(b), 551(d), 552(d), and 557 of Title 6, Domestic
    Security, and the Department of Homeland Security Reorganization
    Plan of November 25, 2002, as modified, set out as a note under
    section 542 of Title 6.

-MISC2-
    PROHIBITION OF NEW LOANS FOR CONSTRUCTION OF FISHING VESSELS UNDER
                            CERTAIN CONDITIONS
      Pub. L. 104-297, title III, Sec. 302(b), Oct. 11, 1996, 110 Stat.
    3615, as amended by Pub. L. 105-277, div. C, title II, Sec. 212,
    Oct. 21, 1998, 112 Stat. 2681-635; Pub. L. 107-206, title I, Sec.
    1103, Aug. 2, 2002, 116 Stat. 884, provided that:
      "(1) Until October 1, 2001, no new loans may be guaranteed by the
    Federal Government for the construction of new fishing vessels if
    the construction will result in an increased harvesting capacity
    within the United States exclusive economic zone.
      "(2) No loans may be provided or guaranteed by the Federal
    Government for the construction or rebuilding of a vessel intended
    for use as a fishing vessel (as defined in section 2101 of title
    46, United States Code), if such vessel will be greater than 165
    feet in registered length, of more than 750 gross registered tons
    (as measured under chapter 145 of title 46) or 1,900 gross
    registered tons [(]as measured under chapter 143 of that title), or
    have an engine or engines capable of producing a total of more than
    3,000 shaft horsepower, after such construction or rebuilding is
    completed. This prohibition shall not apply to vessels to be used
    in the menhaden fishery or in tuna purse seine fisheries outside
    the exclusive economic zone of the United States or the area of the
    South Pacific Regional Fisheries Treaty."
      [Pub. L. 107-206, title I, Sec. 1103, Aug. 2, 2002, 116 Stat.
    884, which directed the amendment of title II of division C of
    Public Law 105-277 by substituting "of more than 750 gross
    registered tons (as measured under chapter 145 of title 46) or
    1,900 gross registered tons as measured under chapter 143 of that
    title)" for "of more than 750 gross registered tons", was executed
    to section 302(b) of Pub. L. 104-297, set out above, as amended by
    section 212 of Pub. L. 105-277, to reflect the probable intent of
    Congress.]

    REVISION OF CONTRACTS, COMMITMENTS TO INSURE MORTGAGES, MORTGAGES,
      AND MORTGAGE INSURANCE CONTRACTS ENTERED INTO PRIOR TO JUNE 12,
                                   1960
      For provisions authorizing revision, see section 8(c) of Pub. L.
    86-518, set out as a note under section 1125 of this Appendix.

      COMMERCIAL EXPECTANCY OR PERIOD OF DEPRECIATION OF TANKERS AND
                        OTHER LIQUID BULK CARRIERS
      Nothing in any amendment made by Pub. L. 86-518 to operate or be
    interpreted to change from 20 to 25 years the provisions of this
    chapter relating to the commercial expectancy or period of
    depreciation of any tanker or other liquid bulk carrier, see
    section 9 of Pub. L. 86-518, set out as a note under section 1125
    of this Appendix.

-FOOTNOTE-
    (!1) So in original. The semicolon probably should be a colon.

    (!2) So in original. See 2006 Amendment notes.

    (!3) So in original. The word "shall" probably should not
         appear.

    (!4) See References in Text note below.

-End-

-CITE-
    46 USC APPENDIX Sec. 1274a                                  01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER XI - FEDERAL SHIP MORTGAGE INSURANCE

-HEAD-
    Sec. 1274a. Authorization of Secretary or Administrator to
      guarantee obligations arising from statutorily mandated change in
      standards for operation of vessels

-STATUTE-
    (a) Purpose of obligations; principal and interest
      Notwithstanding the provisions of this subchapter, except as
    provided in subsection (d) of this section, the Secretary or
    Administrator, upon the terms the Secretary or Administrator may
    prescribe, may guarantee or make a commitment to guarantee, payment
    of the principal of and interest on an obligation which aids in
    financing and refinancing, including reimbursement to an obligor
    for expenditures previously made, of a contract for construction or
    reconstruction of a vessel or vessels which are designed and to be
    employed for commercial use in the coastwise or intercoastal trade
    or in foreign trade as defined in section 1244 of this Appendix if -
     
        (1) the construction or reconstruction by an applicant is made
      necessary to replace vessels the continued operation of which is
      denied by virtue of the imposition of a statutorily mandated
      change in standards for the operation of vessels, and where, as a
      matter of law, the applicant would otherwise be denied the right
      to continue operating vessels in the trades in which the
      applicant operated prior to the taking effect of the statutory or
      regulatory change;
        (2) the applicant is presently engaged in transporting cargoes
      in vessels of the type and class that will be constructed or
      reconstructed under this section, and agrees to employ vessels
      constructed or reconstructed under this section as replacements
      only for vessels made obsolete by changes in operating standards
      imposed by statute;
        (3) the capacity of the vessels to be constructed or
      reconstructed under this subchapter will not increase the cargo
      carrying capacity of the vessels being replaced;
        (4) the Secretary or Administrator has not made a determination
      that the market demand for the vessel over its useful life will
      diminish so as to make the granting of the guarantee fiduciarily
      imprudent; and
        (5) the Secretary or Administrator has considered the
      provisions of section 1274(d)(1)(A)(iii), (iv), and (v) of this
      Appendix.
    (b) Limitations on length and amount of guaranteed obligations;
      useful life of vessel
      For the purposes of this section - 
        (1) the maximum term for obligations guaranteed under this
      program may not exceed 25 years;
        (2) obligations guaranteed may not exceed 87 1/2  percent of
      the actual cost or depreciated actual cost to the applicant for
      the construction or reconstruction of the vessel; and
        (3) reconstruction cost obligations may not be guaranteed
      unless the vessel after reconstruction will have a useful life of
      at least 15 years.

    The Secretary or Administrator may not by rule, regulation, or
    procedure establish any percentage within the 87 1/2  percent or
    less limitation in paragraph (2) that is, or is intended to be,
    applied uniformly to all guarantees or commitments to guarantee
    made under this section.
    (c) Security against default; fees; Vessel Replacement Guarantee
      Fund
      (1) The Secretary or Administrator shall by rule require that the
    applicant provide adequate security against default. The Secretary
    or Administrator may, in addition to any fees assessed under
    section 1274(e) of this Appendix, establish a Vessel Replacement
    Guarantee Fund into which shall be paid by obligors under this
    section - 
        (A) annual fees which may be an additional amount on the loan
      guarantee fee in section 1274(e) of this Appendix not to exceed
      an additional 1 percent; or
        (B) fees based on the amount of the obligation versus the
      percentage of the obligor's fleet being replaced by vessels
      constructed or reconstructed under this section.

      (2) The Vessel Replacement Guarantee Fund shall be a subaccount
    in the Federal Ship Financing Fund, and shall - 
        (A) be the depository for all moneys received by the Secretary
      or Administrator under sections 1271 through 1276 and 1279 (!1)
      of this Appendix with respect to guarantee or commitments to
      guarantee made under this section;

        (B) not include investigation fees payable under section
      1274(f) of this Appendix which shall be paid to the Federal Ship
      Financing Fund; and
        (C) be the depository, whenever there shall be outstanding any
      notes or obligations issued by the Secretary or Administrator
      under section 1275(d) of this Appendix with respect to the Vessel
      Replacement Guarantee Fund, for all moneys received by the
      Secretary or Administrator under sections 1271 through 1276 and
      1279 (!1) of this Appendix from applicants under this section.
    (d) Additional requirements
      The program created by this section shall, in addition to the
    requirements of this section, be subject to the provisions of
    sections 1271 through 1273; 1274(b)(1), (4), (5), (6); 1274(e);
    1274(f); 1274(h); and 1275, 1276, and 1279 (!1) of this Appendix;
    except that the Federal Ship Financing Fund is not liable for any
    guarantees or commitments to guarantee issued under this section.

-SOURCE-
    (June 29, 1936, ch. 858, title XI, Sec. 1104B, as added Pub. L. 101-
    380, title IV, Sec. 4115(f)(2), Aug. 18, 1990, 104 Stat. 521;
    amended Pub. L. 102-587, title VI, Sec. 6204, Nov. 4, 1992, 106
    Stat. 5094; Pub. L. 103-160, div. A, title XIII, Sec. 1356(4), Nov.
    30, 1993, 107 Stat. 1814; Pub. L. 104-239, Sec. 11(2), Oct. 8,
    1996, 110 Stat. 3134; Pub. L. 109-163, div. C, title XXXV, Sec.
    3507(a)(1)(E), Jan. 6, 2006, 119 Stat. 3555.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Sections 1276 and 1279 of this Appendix, referred to in subsecs.
    (c)(2) and (d), were repealed by Pub. L. 101-225, title III, Sec.
    307(7), Dec. 12, 1989, 103 Stat. 1925.

-MISC1-
                                AMENDMENTS                            
      2006 - Subsecs. (a) to (c). Pub. L. 109-163 substituted
    "Secretary or Administrator" for "Secretary" wherever appearing.
      1996 - Subsec. (a). Pub. L. 104-239 struck out "owned by citizens
    of the United States" after "vessel or vessels" in introductory
    provisions.
      1993 - Subsec. (b). Pub. L. 103-160 inserted at end "The
    Secretary may not by rule, regulation, or procedure establish any
    percentage within the 87 1/2  percent or less limitation in
    paragraph (2) that is, or is intended to be, applied uniformly to
    all guarantees or commitments to guarantee made under this
    section."
      1992 - Subsec. (b)(2). Pub. L. 102-587, which directed the
    amendment of par. (2) by substituting "87 1/2  percent" for "73
    percent", was executed by making the substitution for "75 percent",
    to reflect the probable intent of Congress.

                              EFFECTIVE DATE                          
      Section applicable to incidents occurring after Aug. 18, 1990,
    see section 1020 of Pub. L. 101-380, set out as a note under
    section 2701 of Title 33, Navigation and Navigable Waters.

-FOOTNOTE-
    (!1) See References in Text note below.

-End-

-CITE-
    46 USC APPENDIX Sec. 1275                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER XI - FEDERAL SHIP MORTGAGE INSURANCE

-HEAD-
    Sec. 1275. Defaults

-STATUTE-
    (a) Rights of obligee
      In the event of a default, which has continued for thirty days,
    in any payment by the obligor of principal or interest due under an
    obligation guaranteed under this subchapter, the obligee or his
    agent shall have the right to demand (unless the Secretary or
    Administrator shall, upon such terms as may be provided in the
    obligation or related agreements, prior to that demand, have
    assumed the obligor's rights and duties under the obligation and
    agreements and shall have made any payments in default), at or
    before the expiration of such period as may be specified in the
    guarantee or related agreements, but not later than ninety days
    from the date of such default, payment by the Secretary or
    Administrator of the unpaid principal amount of said obligation and
    of the unpaid interest thereon to the date of payment. Within such
    period as may be specified in the guarantee or related agreements,
    but not later than thirty days from the date of such demand, the
    Secretary or Administrator shall promptly pay to the obligee or his
    agent the unpaid principal amount of said obligation and unpaid
    interest thereon to the date of payment: Provided, That the
    Secretary or Administrator shall not be required to make such
    payment if prior to the expiration of said period he shall find
    that there was no default by the obligor in the payment of
    principal or interest or that such default has been remedied prior
    to any such demand.
    (b) Notice of default
      In the event of a default under a mortgage, loan agreement, or
    other security agreement between the obligor and the Secretary or
    Administrator, the Secretary or Administrator may upon such terms
    as may be provided in the obligation or related agreement, either:
        (1) assume the obligor's rights and duties under the agreement,
      make any payment in default, and notify the obligee or the
      obligee's agent of the default and the assumption by the
      Secretary or Administrator; or
        (2) notify the obligee or the obligee's agent of the default,
      and the obligee or the obligee's agent shall have the right to
      demand at or before the expiration of such period as may be
      specified in the guarantee or related agreements, but not later
      than 60 days from the date of such notice, payment by the
      Secretary or Administrator of the unpaid principal amount of said
      obligation and of the unpaid interest thereon. Within such period
      as may be specified in the guarantee or related agreements, but
      not later than 30 days from the date of such demand, the
      Secretary or Administrator shall promptly pay to the obligee or
      the obligee's agent the unpaid principal amount of said
      obligation and unpaid interest thereon to the date of payment.
    (c) Secretary or Administrator to complete, sell or operate
      property
      In the event of any payment or assumption by the Secretary or
    Administrator under subsection (a) or (b) of this section, the
    Secretary or Administrator shall have all rights in any security
    held by him relating to his guarantee of such obligations as are
    conferred upon him under any security agreement with the obligor.
    Notwithstanding any other provision of law relating to the
    acquisition, handling, or disposal of property by the United
    States, the Secretary or Administrator shall have the right, in his
    discretion, to complete, recondition, reconstruct, renovate,
    repair, maintain, operate, charter, or sell any property acquired
    by him pursuant to a security agreement with the obligor or may
    place a vessel in the national defense reserve. The terms of the
    sale shall be as approved by the Secretary or Administrator.
    (d) Cash payments; issuance of notes or obligations
      Any amount required to be paid by the Secretary or Administrator
    pursuant to subsection (a) or (b) of this section, shall be paid in
    cash. If at any time the moneys in the Fund authorized by section
    1272 of this Appendix are not sufficient to pay any amount the
    Secretary or Administrator is required to pay by subsection (a) or
    (b) of this section, the Secretary or Administrator is authorized
    to issue to the Secretary of the Treasury notes or other
    obligations in such forms and denominations, bearing such
    maturities, and subject to such terms and conditions as may be
    prescribed by the Secretary or Administrator, with the approval of
    the Secretary of the Treasury. Such notes or other obligations
    shall bear interest at a rate determined by the Secretary of the
    Treasury, taking into consideration the current average market
    yield on outstanding marketable obligations of the United States of
    comparable maturities during the month preceding the issuance of
    such notes or other obligations. The Secretary of the Treasury is
    authorized and directed to purchase any notes and other obligations
    to be issued hereunder and for such purpose he is authorized to use
    as a public debt transaction the proceeds from the sale of any
    securities issued under chapter 31 of title 31, and the purposes
    for which securities may be issued under such chapter, are extended
    to include any purchases of such notes and obligations. The
    Secretary of the Treasury may at any time sell any of the notes or
    other obligations acquired by him under this section. All
    redemptions, purchases, and sales by the Secretary of the Treasury
    of such notes or other obligations shall be treated as public debt
    transactions of the United States. Funds borrowed under this
    section shall be deposited in the Fund and redemptions of such
    notes and obligations shall be made by the Secretary or
    Administrator from such Fund.
    (e) Actions against obligor
      In the event of a default under any guaranteed obligation or any
    related agreement, the Secretary or Administrator shall take such
    action against the obligor or any other parties liable thereunder
    that, in his discretion, may be required to protect the interests
    of the United States. Any suit may be brought in the name of the
    United States or in the name of the obligee and the obligee shall
    make available to the United States all records and evidence
    necessary to prosecute any such suit. The Secretary or
    Administrator shall have the right, in his discretion, to accept a
    conveyance of title to and possession of property from the obligor
    or other parties liable to the Secretary or Administrator, and may
    purchase the property for an amount not greater than the unpaid
    principal amount of such obligation and interest thereon. In the
    event that the Secretary or Administrator shall receive through the
    sale of property an amount of cash in excess of the unpaid
    principal amount of the obligation and unpaid interest on the
    obligation and the expenses of collection of those amounts, the
    Secretary or Administrator shall pay the excess to the obligor.
    (f) Default response
      In the event of default on an obligation, the Secretary shall
    conduct operations under this subchapter in a manner which - 
        (1) maximizes the net present value return from the sale or
      disposition of assets associated with the obligation, including
      prompt referral to the Attorney General for collection as
      appropriate;
        (2) minimizes the amount of any loss realized in the resolution
      of the guarantee;
        (3) ensures adequate competition and fair and consistent
      treatment of offerors; and
        (4) requires appraisal of assets by an independent appraiser.

-SOURCE-
    (June 29, 1936, ch. 858, title XI, Sec. 1105, as added June 23,
    1938, ch. 600, Sec. 46, 52 Stat. 971; amended Aug. 15, 1953, ch.
    513, Sec. 3, 67 Stat. 626; Sept. 3, 1954, ch. 1265, Sec. 5, 68
    Stat. 1272; Aug. 7, 1956, ch. 1026, Sec. 1(e)-(g), 70 Stat. 1087;
    Pub. L. 85-520, July 15, 1958, 72 Stat. 358; Pub. L. 91-469, Sec.
    33, Oct. 21, 1970, 84 Stat. 1035; Pub. L. 92-507, Sec. 3, Oct. 19,
    1972, 86 Stat. 914; Pub. L. 96-561, title II, Sec. 220(4), Dec. 22,
    1980, 94 Stat. 3294; Pub. L. 97-31, Sec. 12(136), Aug. 6, 1981, 95
    Stat. 166; Pub. L. 97-35, title XVI, Sec. 1606(e), Aug. 13, 1981,
    95 Stat. 752; Pub. L. 98-595, Sec. 1(8)-(11), Oct. 30, 1984, 98
    Stat. 3131; Pub. L. 108-136, div. C, title XXXV, Sec. 3524, Nov.
    24, 2003, 117 Stat. 1801; Pub. L. 109-163, div. C, title XXXV, Sec.
    3507(a)(1)(F), (G), Jan. 6, 2006, 119 Stat. 3555.)

-COD-
                               CODIFICATION                           
      In subsec. (d), "chapter 31 of title 31" and "such chapter"
    substituted for "the Second Liberty Bond Act, as amended" and "such
    Act, as amended,", respectively, on authority of Pub. L. 97-258,
    Sec. 4(b), Sept. 13, 1982, 96 Stat. 1067, the first section of
    which enacted Title 31, Money and Finance.

-MISC1-
                                AMENDMENTS                            
      2006 - Subsecs. (a) to (c). Pub. L. 109-163, Sec. 3507(a)(1)(F),
    substituted "Secretary or Administrator" for "Secretary" wherever
    appearing.
      Subsec. (d). Pub. L. 109-163, Sec. 3507(a)(1)(G), substituted
    "Secretary or Administrator" for "Secretary" the first, second,
    third, fifth, and last places it appeared.
      Subsec. (e). Pub. L. 109-163, Sec. 3507(a)(1)(F), substituted
    "Secretary or Administrator" for "Secretary" wherever appearing.
      2003 - Subsec. (f). Pub. L. 108-136 added subsec. (f).
      1984 - Subsec. (a). Pub. L. 98-595, Sec. 1(8), inserted "(unless
    the Secretary shall, upon such terms as may be provided in the
    obligation or related agreements, prior to that demand, have
    assumed the obligor's rights and duties under the obligation and
    agreements and shall have made any payments in default)".
      Subsec. (b). Pub. L. 98-595, Sec. 1(9), expanded provisions
    relating to the Secretary's rights in the case of default under a
    security agreement between the obligor and the Secretary to include
    the option of assuming the obligor's rights and duties under the
    agreement.
      Subsec. (c). Pub. L. 98-595, Sec. 1(10), inserted "or
    assumption".
      Subsec. (e). Pub. L. 98-595, Sec. 1(11), substituted "the unpaid
    principal amount of the obligation and unpaid interest on the
    obligation and the expenses of collection of those amounts, the
    Secretary" for "any payment made to an obligee under subsection (a)
    or (b) of this section and the expenses of collection of such
    amounts, he".
      1981 - Subsecs. (a) to (c). Pub. L. 97-31 struck out "of
    Commerce" after "Secretary" wherever appearing.
      Subsec. (d). Pub. L. 97-35 struck out of first sentence the
    requirement of payment from the appropriate subfund established
    under section 1274(g)(2) of this Appendix.
      Pub. L. 97-31 struck out "of Commerce" after "Secretary" in five
    places.
      Subsec. (e). Pub. L. 97-31 struck out "of Commerce" after
    "Secretary" in four places.
      1980 - Subsec. (d). Pub. L. 96-561 inserted in first sentence ",
    and shall be paid from the appropriate subfund required to be
    established under section 1274(g)(2) of this Appendix" after "paid
    in cash".
      1972 - Subsec. (a). Pub. L. 92-507 substituted provisions
    relating to the rights of obligee to demand and receive payment
    from the Secretary under certain circumstances, for provisions
    relating to the rights of mortgagee and lender to demand and
    receive payment under certain circumstances and the authority of
    the Secretary to terminate the insurance contract by notification
    to the mortgagee or the lender as the case may be.
      Subsec. (b). Pub. L. 92-507 inserted provisions relating to
    notification of default to the obligee, and payment of unpaid
    principal and interest amount, by the Secretary within certain
    time. Former subsec. (b) redesignated (d).
      Subsec. (c). Pub. L. 92-507 incorporated substantially the
    provisions of subsec. (d) into subsec. (c). Former subsec. (c) is
    now covered by subsec. (e).
      Subsec. (d). Pub. L. 92-507 incorporated provisions of former
    subsec. (b) into subsec. (d). Former subsec. (d) is now covered by
    subsec. (c).
      Subsec. (e). Pub. L. 92-507 incorporated provisions of former
    subsec. (c) relating to actions by the Secretary in the event of
    defaults by mortgagors and borrowers, into subsec. (e), and
    substituted therefor provisions relating to actions by the
    Secretary in the event of defaults by obligors of guaranteed
    obligations and related agreements. Provisions of former subsec.
    (e) relating to termination and cancellation of insurance contracts
    and the incontestability of such contracts except for fraud, duress
    or mutual mistake of fact are omitted.
      1970 - Subsec. (d). Pub. L. 91-469 substituted provision for
    inclusion of interest in the installments on the purchase price
    remaining unpaid at a rate not less than a rate determined by the
    Secretary of the Treasury, taking into consideration the current
    average market yield on outstanding marketable obligations of the
    United States with remaining periods to maturity comparable to the
    average maturities of such installments, adjusted to the nearest
    one-eighth of 1 per centum plus an administrative cost allowance,
    for prior rate of 3 1/2  per centum per annum on installments of
    purchase price remaining unpaid.
      1958 - Subsec. (b). Pub. L. 85-520 authorized the Secretary of
    Commerce to issue notes or obligations whenever the moneys in the
    Federal Ship Mortgage Insurance Fund are insufficient to pay
    amounts required to be paid under subsec. (a) of this section.
      1956 - Subsec. (a)(1), (2). Act Aug. 7, 1956, Sec. 1(e), struck
    out "the insured portion of" before "the unpaid principal amount",
    wherever appearing.
      Subsec. (c)(1). Act Aug. 7, 1956, Sec. 1(f), substituted "such
    excess to the borrower" for "to the mortgagee such cash amounts to
    the extent that the mortgagee has not been made whole through other
    sources for amounts advanced to the mortgagor but in no event shall
    such payments to the mortgagee exceed 10 per centum of the unpaid
    principal amount of mortgage and the interest thereon, and any
    excess of the amounts thus due the Government and the mortgagee
    shall be paid to the mortgagor".
      Subsec. (c)(2). Act Aug. 7, 1956, Sec. 1(g), substituted "such
    excess to the borrower" for "to the lender such cash amount to the
    extent that the lender has not been made whole through other
    sources for amounts advanced to the borrower but in no event shall
    such payment to the lender exceed 10 per centum of the unpaid
    principal amount of loan and the interest thereon, and any excess
    of the amounts thus due the Government and the lender shall be paid
    to the borrower".
      1954 - Act Sept. 3, 1954, gave new rights to both borrowers and
    lenders and set up new foreclosure procedures.
      1953 - Act Aug. 15, 1953, provided that in the event of a default
    in payment of either principal or interest, the lender may tender
    an assignment of the mortgage and all collateral to the Secretary
    who shall promptly pay the unpaid balance in cash, provided for the
    foreclosure and repossession of mortgaged vessels; allowed the
    Secretary to take any necessary steps to minimize the loss, and
    made all insurance commitments conclusive.

              SECRETARY OF COMMERCE; FISHING VESSEL INSURANCE          
      Pub. L. 86-577, July 5, 1960, 74 Stat. 314, provided: "That in
    order to permit the efficient execution of functions relating to
    the issuance of Federal ship mortgage insurance on fishing vessels,
    pursuant to the Merchant Marine Act of June 29, 1936, as amended
    [this chapter] (49 Stat. 1985; 46 U.S.C., 1952 edition, sec. 1271
    and the following), which functions relating to fishing vessels
    have been transferred to the Secretary of the Interior pursuant to
    the Fish and Wildlife Act of 1956 [section 742a et seq. of Title
    16, Conservation], the Secretary of the Interior hereafter may
    exercise authority comparable to the authority of the Secretary of
    Commerce under the said Merchant Marine Act of 1936 [this chapter],
    including, but not limited to the authority contained in the
    amendment to such Act of July 15, 1958 (72 Stat. 358) [amending
    this section]."
      Functions relating to the issuance of Federal ship mortgage
    insurance on fishing vessels, which functions were transferred to
    the Secretary of the Interior, were retransferred to the Secretary
    of Commerce by Reorg. Plan No. 4 of 1970, Sec. 1, eff. Oct. 3,
    1970, 35 F.R. 15627, 84 Stat. 2090, set out in the Appendix to
    Title 5, Government Organization and Employees.

-End-

-CITE-
    46 USC APPENDIX Sec. 1279a                                  01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER XI - FEDERAL SHIP MORTGAGE INSURANCE

-HEAD-
    Sec. 1279a. Escrow fund

-STATUTE-
    (a) Creation
      If the proceeds of an obligation guaranteed under this subchapter
    are to be used to finance the construction, reconstruction, or
    reconditioning of a vessel or vessels which will serve as security
    for the guarantee of the Secretary or Administrator, the Secretary
    or Administrator is authorized to accept and hold, in escrow under
    an escrow agreement with the obligor, a portion of the proceeds of
    all obligations guaranteed under this subchapter whose proceeds are
    to be so used which is equal to: (i) the excess of the principal
    amount of all obligations whose proceeds are to be so used over 75
    per centum, or 87(!1/2) per centum, whichever is applicable under
    section 1274 (!1) of this Appendix, of the amount paid by or for
    the account of the obligor for the construction, reconstruction, or
    reconditioning of the vessel or vessels; (ii) with such interest
    thereon, if any, as the Secretary or Administrator may require:
    Provided, That in the event the security for the guarantee of an
    obligation by the Secretary or Administrator relates both to a
    vessel or vessels to be constructed, reconstructed or reconditioned
    and to a delivered vessel or vessels, the principal amount of such
    obligation shall be prorated for purposes of this subsection (a)
    under regulations prescribed by the Secretary or Administrator.

    (b) Disbursement prior to termination of escrow agreement
      The Secretary or Administrator shall, as specified in the escrow
    agreement, disburse the escrow fund to pay amounts the obligor is
    obligated to pay as interest on such obligations or for the
    construction, reconstruction, or reconditioning of the vessel or
    vessels used as security for the guarantee of the Secretary or
    Administrator under this subchapter, to redeem such obligations in
    connection with a refinancing under paragraph (4) (!1) of section
    1274(a) of this Appendix or to pay to the obligor at such times as
    may be provided for in the escrow agreement any excess interest
    deposits, except that if payments become due under the guarantee
    prior to the termination of the escrow agreement, all amounts in
    the escrow fund at the time such payments become due (including
    realized income which has not yet been paid to the obligor) shall
    be paid into the Fund and (i), be credited against any amounts due
    or to become due to the Secretary or Administrator from the obligor
    with respect to the guaranteed obligations and (ii) to the extent
    not so required, be paid to the obligor.
    (c) Disbursement upon termination of escrow agreement
      If payments under the guarantee have not become due prior to the
    termination of the escrow agreement, any balance of the escrow fund
    at the time of such termination shall be disbursed to prepay the
    excess of the principal of all obligations whose proceeds are to be
    used to finance the construction, reconstruction, or reconditioning
    of the vessel or vessels which serve or will serve as security for
    such guarantee over 75 per centum or 87(!1/2) per centum, whichever
    is applicable under section 1274 (!1) of this Appendix, of the
    actual cost of such vessel or vessels to the extent paid, and to
    pay interest on such prepaid amount of principal, and the remainder
    of such balance of the escrow fund shall be paid to the obligor.
    (d) Investment of fund
      The Secretary or Administrator may invest and reinvest all or any
    part of the escrow fund in obligations of the United States with
    such maturities that the escrow fund will be available as required
    for purposes of the escrow agreement.
    (e) Payment of income
      Any income realized on the escrow fund shall, upon receipt, be
    paid to the obligor.
    (f) Terms of escrow agreement
      The escrow agreement shall contain such other terms as the
    Secretary or Administrator may consider necessary to protect fully
    the interests of the United States.
    (g) Payments required before disbursement
      (1) In general
        No disbursement shall be made under subsection (b) of this
      section to any person until the total amount paid by or for the
      account of the obligor from sources other than the proceeds of
      the obligation equals at least 25 percent or 12 1/2  percent,
      whichever is applicable under section 1274 of this Appendix, of
      the aggregate actual cost of the vessel, as previously approved
      by the Secretary or Administrator. If the aggregate actual cost
      of the vessel has increased since the Secretary's or
      Administrator's initial approval or if it increases after the
      first disbursement is permitted under this subsection, then no
      further disbursements shall be made under subsection (b) of this
      section until the total amount paid by or for the account of the
      obligor from sources other than the proceeds of the obligation
      equals at least 25 percent or 12 1/2  percent, as applicable, of
      the increase, as determined by the Secretary or Administrator, in
      the aggregate actual cost of the vessel. Nothing in this
      paragraph shall require the Secretary or Administrator to consent
      to finance any increase in actual cost unless the Secretary or
      Administrator determines that such an increase in the obligation
      meets all the terms and conditions of this subchapter or other
      applicable law.
      (2) Documented proof of progress requirement
        The Secretary or Administrator shall, by regulation, establish
      a transparent, independent, and risk-based process for verifying
      and documenting the progress of projects under construction
      before disbursing guaranteed loan funds. At a minimum, the
      process shall require documented proof of progress in connection
      with the construction, reconstruction, or reconditioning of a
      vessel or vessels before disbursements are made from the escrow
      fund. The Secretary or Administrator may require that the obligor
      provide a certificate from an independent party certifying that
      the requisite progress in construction, reconstruction, or
      reconditioning has taken place.

-SOURCE-
    (June 29, 1936, ch. 858, title XI, Sec. 1108, formerly Sec. 1111,
    as added Pub. L. 86-127, Sec. 1(2), July 31, 1959, 73 Stat. 272;
    renumbered and amended Pub. L. 92-507, Sec. 5, Oct. 19, 1972, 86
    Stat. 916; Pub. L. 97-31, Sec. 12(136), Aug. 6, 1981, 95 Stat. 166;
    Pub. L. 108-136, div. C, title XXXV, Sec. 3521(a), Nov. 24, 2003,
    117 Stat. 1799; Pub. L. 109-163, div. C, title XXXV, Sec.
    3507(a)(1)(H), (3), Jan. 6, 2006, 119 Stat. 3555.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      References in subsecs. (a) to (c) to section 1274 of this
    Appendix, were in the original references to section 1104 of this
    title, meaning section 1104 of title XI of the Merchant Marine Act,
    1936, act June 29, 1936, ch. 858. Section 1104 of that Act was
    renumbered as section 1104A of that Act by Pub. L. 101-380, title
    IV, Sec. 4115(f)(1), Aug. 18, 1990, 104 Stat. 521.
      Paragraph (4) of section 1274(a) of this Appendix, referred to in
    subsec. (b), was redesignated paragraph (5) of section 1274(a) of
    this Appendix by Pub. L. 96-561, title II, Sec. 220(3)(A)(iii),
    Dec. 22, 1980, 94 Stat. 3292.

-MISC1-
                                AMENDMENTS                            
      2006 - Subsecs. (a), (b), (d), (f). Pub. L. 109-163, Sec.
    3507(a)(1)(H), substituted "Secretary or Administrator" for
    "Secretary" wherever appearing.
      Subsec. (g). Pub. L. 109-163 substituted "Secretary or
    Administrator" for "Secretary" wherever appearing and "Secretary's
    or Administrator's" for "Secretary's" in par. (1).
      2003 - Subsec. (g). Pub. L. 108-136 added subsec. (g).
      1981 - Subsecs. (a), (b), (d), (f). Pub. L. 97-31 struck out "of
    Commerce" after "Secretary" wherever appearing.
      1972 - Subsec. (a). Pub. L. 92-507 substantially reenacted
    subsec. (a) and substituted requirement that an escrow fund be
    created out of proceeds of obligations, for requirement that such
    fund be created out of sale of bonds.
      Subsec. (b). Pub. L. 92-507 substituted provisions for the
    disbursement of escrow fund to pay certain payments the obligor is
    obligated to pay, for provisions for the disbursement of such fund
    to pay certain payments the mortgagor or borrower is obligated to
    pay.
      Subsec. (c). Pub. L. 92-507 substituted provisions for the
    disbursement of the remainder of funds in the escrow fund to the
    obligor on the termination of the escrow agreement, for provisions
    for the disbursement of such funds to the mortgagor or borrower as
    the case may be.
      Subsec. (d). Pub. L. 92-507 substituted "the escrow fund" for
    "such fund".
      Subsec. (e). Pub. L. 92-507 substituted provisions for payment of
    income to obligor, for provisions for payment of such income to
    mortgagor or borrower.
      Subsec. (f). Pub. L. 92-507 substituted "to protect fully" for
    "to fully protect".

-FOOTNOTE-
    (!1) See References in Text note below.

-End-

-CITE-
    46 USC APPENDIX Sec. 1279b                                  01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER XI - FEDERAL SHIP MORTGAGE INSURANCE

-HEAD-
    Sec. 1279b. Deposit fund

-STATUTE-
    (a) Establishment of deposit fund
      There is established in the Treasury a deposit fund for purposes
    of this section. The Secretary or Administrator may, in accordance
    with an agreement under subsection (b) of this section, deposit
    into and hold in the deposit fund cash belonging to an obligor to
    serve as collateral for a guarantee under this subchapter made with
    respect to the obligor.
    (b) Agreement
      (1) In general
        The Secretary or Administrator and an obligor shall enter into
      a reserve fund or other collateral account agreement to govern
      the deposit, withdrawal, retention, use, and reinvestment of cash
      of the obligor held in the deposit fund established by subsection
      (a) of this section.
      (2) Terms
        The agreement shall contain such terms and conditions as are
      required under this section and such additional terms as are
      considered by the Secretary or Administrator to be necessary to
      protect fully the interests of the United States.
      (3) Security interest of United States
        The agreement shall include terms that grant to the United
      States a security interest in all amounts deposited into the
      deposit fund.
    (c) Investment
      The Secretary or Administrator may invest and reinvest any part
    of the amounts in the deposit fund established by subsection (a) of
    this section in obligations of the United States with such
    maturities as ensure that amounts in the deposit fund will be
    available as required for purposes of agreements under subsection
    (b) of this section. Cash balances of the deposit fund in excess of
    current requirements shall be maintained in a form of uninvested
    funds and the Secretary of the Treasury shall pay interest on these
    funds.
    (d) Withdrawals
      (1) In general
        The cash deposited into the deposit fund established by
      subsection (a) of this section may not be withdrawn without the
      consent of the Secretary or Administrator.
      (2) Use of income
        Subject to paragraph (3), the Secretary or Administrator may
      pay any income earned on cash of an obligor deposited into the
      deposit fund in accordance with the terms of the agreement with
      the obligor under subsection (b) of this section.
      (3) Retention against default
        The Secretary or Administrator may retain and offset any or all
      of the cash of an obligor in the deposit fund, and any income
      realized thereon, as part of the Secretary's or Administrator's
      recovery against the obligor in case of a default by the obligor
      on an obligation.

-SOURCE-
    (June 29, 1936, ch. 858, title XI, Sec. 1109, as added Pub. L. 107-
    107, div. C, title XXXV, Sec. 3503, Dec. 28, 2001, 115 Stat. 1392;
    amended Pub. L. 109-163, div. C, title XXXV, Sec. 3507(a)(1)(H),
    (3), Jan. 6, 2006, 119 Stat. 3555.)

-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1279b of this Appendix, act June 29, 1936, ch.
    858, title XI, Sec. 1109, formerly Sec. 1112, as added Pub. L. 90-
    194, Dec. 14, 1967, 81 Stat. 580; renumbered and amended Pub. L.
    92-507, Sec. 5, Oct. 19, 1972, 86 Stat. 916, 917; Pub. L. 97-31,
    Sec. 12(136), Aug. 6, 1981, 95 Stat. 166, directed Secretary to
    make rules and regulations to carry out this subchapter, prior to
    repeal by Pub. L. 101-225, title III, Sec. 307(7), Dec. 12, 1989,
    103 Stat. 1925.

                                AMENDMENTS                            
      2006 - Subsecs. (a), (b)(1), (2). Pub. L. 109-163, Sec.
    3507(a)(1)(H), substituted "Secretary or Administrator" for
    "Secretary".
      Subsec. (c). Pub. L. 109-163, Sec. 3507(a)(1)(H), substituted
    "Secretary or Administrator may invest" for "Secretary may invest".
      Subsec. (d). Pub. L. 109-163 substituted "Secretary or
    Administrator" for "Secretary" wherever appearing and "Secretary's
    or Administrator's" for "Secretary's" in par. (3).

-End-

-CITE-
    46 USC APPENDIX Sec. 1279c                                  01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER XI - FEDERAL SHIP MORTGAGE INSURANCE

-HEAD-
    Sec. 1279c. Ocean thermal energy conversion demonstration
      facilities and plantships

-STATUTE-
    (a) Financing of construction, reconstruction, or reconditioning
      Pursuant to the authority granted under section 1273(a) of this
    Appendix, the Administrator, upon such terms as he shall prescribe,
    may guarantee or make a commitment to guarantee, payment of the
    principal of and interest on an obligation which aids in financing,
    including reimbursement of an obligor for expenditures previously
    made for, construction, reconstruction, or reconditioning of a
    commercial demonstration ocean thermal energy conversion facility
    or plantship. Guarantees or commitments to guarantee under this
    subsection shall be subject to all the provisos, requirements,
    regulations, and procedures which apply to guarantees or
    commitments to guarantee made pursuant to section 1274(a)(1) (!1)
    of this Appendix, except that - 

        (1) no guarantees or commitments to guarantee may be made by
      the Administrator under this subsection before October 1, 1981;
        (2) the provisions of subsection (d) of section 1274 (!1) of
      this Appendix shall apply to guarantees or commitments to
      guarantee for that portion of a commercial demonstration ocean
      thermal energy conversion facility or plantship not to be
      supported with appropriated Federal funds;
        (3) guarantees or commitments to guarantee made pursuant to
      this section may be in an aggregate principal amount which does
      not exceed 87 1/2  percent of the actual cost or depreciated
      actual cost of the commercial demonstration ocean thermal energy
      conversion facility or plantship: Provided, That, if the
      commercial demonstration ocean thermal energy conversion facility
      or plantship is supported with appropriated Federal funds, such
      guarantees or commitments to guarantee may not exceed 87 1/2 
      percent of the aggregate principal amount of that portion of the
      actual cost or depreciated actual cost for which the obligor has
      an obligation to secure financing in accordance with the terms of
      the agreement between the obligor and the Department of Energy or
      other Federal agency; and
        (4) the provisions of this section may be used to guarantee
      obligations for a total of not more than 5 separate commercial
      demonstration ocean thermal energy conversion facilities and
      plantships or a demonstrated 400 megawatt capacity, whichever
      comes first.
    (b) Certification of reasonableness of risk
      A guarantee or commitment to guarantee shall not be made under
    this section unless the Secretary of Energy, in consultation with
    the Administrator, certifies to the Administrator that, for the
    ocean thermal energy conversion facility or plantship for which the
    guarantee or commitment to guarantee is sought, there is sufficient
    guarantee of performance and payment to lower the risk to the
    Federal Government to a level which is reasonable. The Secretary of
    Energy must base his considerations on the following: (1) the
    successful demonstration of the technology to be used in such
    facility at a scale sufficient to establish the likelihood of
    technical and economic viability in the proposed market; and (2)
    the need of the United States to develop new and renewable sources
    of energy and the benefits to be realized from the construction and
    successful operation of such facility or plantship.
    (c) OTEC Demonstration Fund
      A special subaccount in the Federal Ship Financing Fund, to be
    known as the OTEC Demonstration Fund, shall be established on
    October 1, 1981. The OTEC Demonstration Fund shall be used for
    obligation guarantees authorized under this section which do not
    qualify under other sections of this subchapter. Except as
    specified otherwise in this section, the operation of the OTEC
    Demonstration Fund shall be identical with that of the parent
    Federal Ship Financing Fund: except that, notwithstanding the
    provisions of section 1274(g) (!1) of this Appendix, (1) all moneys
    received by the Administrator pursuant to sections 1271 through
    1276 and 1279 (!1) of this Appendix with respect to guarantees or
    commitments to guarantee made pursuant to this section shall be
    deposited only in the OTEC Demonstration Fund, and (2) whenever
    there shall be outstanding any notes or other obligations issued by
    the Administrator pursuant to section 1275(d) of this Appendix with
    respect to the OTEC Demonstration Fund, all moneys received by the
    Administrator pursuant to sections 1271 through 1276 and 1279 (!1)
    of this Appendix with respect to ocean thermal energy conversional
    facilities or plantships shall be deposited in the OTEC
    Demonstration Fund. Assets in the OTEC Demonstration Fund may at
    any time be transferred to the parent fund whenever and to the
    extent that the balance thereof exceeds the total guarantees or
    commitments to guarantee made pursuant to this section then
    outstanding, plus any notes or other obligations issued by the
    Administrator pursuant to section 1275(d) of this Appendix with
    respect to the OTEC Demonstration Fund. The Federal Ship Financing
    Fund shall not be liable for any guarantees or commitments to
    guarantee issued pursuant to this section. The aggregate unpaid
    principal amount of the obligations guaranteed with the backing of
    the OTEC Demonstration Fund and outstanding at any one time shall
    not exceed $1,650,000,000.
    (d) Notes and obligations
      The provisions of section 1275(d) of this Appendix shall apply
    specifically to the OTEC Demonstration Fund as well as to the Fund:
    Provided, however, That any notes or obligations issued by the
    Administrator pursuant to section 1275(d) of this Appendix with
    respect to the OTEC Demonstration Fund shall be payable solely from
    proceeds realized by the OTEC Demonstration Fund.
    (e) Taxability of interest
      The interest on any obligation guaranteed under this section
    shall be included in gross income for purposes of chapter 1 of the
    Internal Revenue Code of 1986 [26 U.S.C. 1 et seq.].

-SOURCE-
    (June 29, 1936, ch. 858, title XI, Sec. 1110, as added Pub. L. 96-
    320, title II, Sec. 203(a), Aug. 3, 1980, 94 Stat. 992; amended
    Pub. L. 97-31, Sec. 12(136), Aug. 6, 1981, 95 Stat. 166; Pub. L. 97-
    35, title XVI, Sec. 1606(f), Aug. 13, 1981, 95 Stat. 752; Pub. L.
    99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095; Pub. L. 104-239,
    Sec. 11(3), Oct. 8, 1996, 110 Stat. 3134; Pub. L. 109-163, div. C,
    title XXXV, Sec. 3507(a)(2)(H), Jan. 6, 2006, 119 Stat. 3555.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      References in subsecs. (a) to (c) to section 1274 of this
    Appendix, were in the original references to section 1104 of this
    title, meaning section 1104 of title XI of the Merchant Marine Act,
    1936, act June 29, 1936, ch. 858. Section 1104 of that Act was
    renumbered as section 1104A of that Act by Pub. L. 101-380, title
    IV, Sec. 4115(f)(1), Aug. 18, 1990, 104 Stat. 521.
      Sections 1276 and 1279 of this Appendix, referred to in subsec.
    (c), were repealed by Pub. L. 101-225, title III, Sec. 307(7), Dec.
    12, 1989, 103 Stat. 1925.

-MISC1-
                                AMENDMENTS                            
      2006 - Subsec. (a). Pub. L. 109-163 substituted "Administrator"
    for "Secretary" in introductory provisions and par. (1).
      Subsec. (b). Pub. L. 109-163 substituted "Administrator,
    certifies to the Administrator" for "Secretary, certifies to the
    Secretary".
      Subsecs. (c), (d). Pub. L. 109-163 substituted "Administrator"
    for "Secretary" wherever appearing.
      1996 - Subsec. (a). Pub. L. 104-239 struck out "owned by citizens
    of the United States" after "facility or plantship" in introductory
    provisions.
      1986 - Subsec. (e). Pub. L. 99-514 substituted "Internal Revenue
    Code of 1986" for "Internal Revenue Code of 1954".
      1981 - Subsecs. (a), (b). Pub. L. 97-31 struck out "of Commerce"
    after "Secretary" wherever appearing.
      Subsec. (c). Pub. L. 97-35 substituted "$1,650,000,000" for
    "$2,000,000,000".
      Pub. L. 97-31 struck out "of Commerce" after "Secretary" wherever
    appearing.
      Subsec. (d). Pub. L. 97-31 struck out "of Commerce" after
    "Secretary".

-FOOTNOTE-
    (!1) See References in Text note below.

-End-

-CITE-
    46 USC APPENDIX Sec. 1279d                                  01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER XI - FEDERAL SHIP MORTGAGE INSURANCE

-HEAD-
    Sec. 1279d. Loan guarantees for eligible export vessels

-STATUTE-
    (a) Authority to guarantee obligations for eligible export vessels
      The Administrator may guarantee obligations for eligible export
    vessels - 
        (1) in accordance with the terms and conditions of this
      subchapter applicable to loan guarantees in the case of vessels
      documented under the laws of the United States; or
        (2) in accordance with such other terms as the Administrator
      determines to be more favorable than the terms otherwise provided
      in this subchapter and to be compatible with export credit terms
      offered by foreign governments for the sale of vessels built in
      foreign shipyards.
    (b) Interagency council
      (1) Establishment; composition
        There is hereby established an interagency council for the
      purposes of this section. The council shall be composed of the
      Administrator, who shall be chairman of the Council,(!1) the
      Secretary of the Treasury, the Secretary of State, the Assistant
      to the President for Economic Policy, the United States Trade
      Representative, and the President and Chairman of the United
      States Export-Import Bank, or their designees.

      (2) Purpose of the council
        The council shall - 
          (A) obtain information on shipbuilding loan guarantees, on
        direct and indirect subsidies, and on other favorable treatment
        of shipyards provided by foreign governments to shipyards in
        competition with United States shipyards; and
          (B) provide guidance to the Administrator in establishing
        terms for loan guarantees for eligible export vessels under
        subsection (a)(2) of this section.
      (3) Consultation with U.S. shipbuilders
        The council shall consult regularly with United States
      shipbuilders to obtain the essential information concerning
      international shipbuilding competition on which to set terms and
      conditions for loan guarantees under subsection (a)(2) of this
      section.
      (4) Annual report
        Not later than January 31 of each year (beginning in 1995), the
      Administrator shall submit to Congress a report on the activities
      of the Administrator under this section during the preceding
      year. Each report shall include documentation of sources of
      information on assistance provided by the governments of other
      nations to shipyards in those nations and a summary of
      recommendations made to the Administrator during the preceding
      year regarding applications submitted to the Administrator during
      that year for loan guarantees under this subchapter for
      construction of eligible export vessels.

-SOURCE-
    (June 29, 1936, ch. 858, title XI, Sec. 1111, as added Pub. L. 103-
    160, div. A, title XIII, Sec. 1355(a), Nov. 30, 1993, 107 Stat.
    1811; amended Pub. L. 109-163, div. C, title XXXV, Sec.
    3507(a)(2)(I), (J), (b)(8), Jan. 6, 2006, 119 Stat. 3555, 3556.)

-MISC1-
                             PRIOR PROVISIONS                         
      Another section 1111 of act June 29, 1936, was renumbered section
    1113 and is classified to section 1279f of this Appendix.

                                AMENDMENTS                            
      2006 - Subsec. (a). Pub. L. 109-163, Sec. 3507(a)(2)(I),
    substituted "Administrator" for "Secretary" in introductory
    provisions and par. (2).
      Subsec. (b)(1). Pub. L. 109-163, Sec. 3507(b)(8), substituted
    "Administrator" for "Secretary of Transportation".
      Subsec. (b)(2)(B). Pub. L. 109-163, Sec. 3507(a)(2)(I),
    substituted "Administrator" for "Secretary".
      Subsec. (b)(4). Pub. L. 109-163, Sec. 3507(a)(2)(J), (b)(8),
    substituted "Administrator shall submit" for "Secretary of
    Transportation shall submit", "activities of the Administrator" for
    "activities of the Secretary", "recommendations made to the
    Administrator" for "recommendations made to the Secretary", and
    "submitted to the Administrator" for "submitted to the Secretary".

                       INTERAGENCY COUNCIL DESIGNEES                   
      Section 1355(b) of Pub. L. 103-160 provided that:
      "(1) Initial designation of council members. - Each member of the
    council established under section 1111(b) of the Merchant Marine
    Act, 1936 [46 App. U.S.C. 1279d(b)], as added by subsection (a),
    shall name a designee for service on the council not later than 30
    days after the date of the enactment of this Act [Nov. 30, 1993].
    Each such member shall promptly notify the Secretary of
    Transportation of that designation.
      "(2) Designation of senior marad official. - Not later than 30
    days after the date of the enactment of this Act, the Secretary of
    Transportation shall designate a senior official within the
    Maritime Administration to have the responsibility and authority to
    carry out the terms and conditions set forth under section 1111 of
    title XI the Merchant Marine Act, 1936, as added by subsection (a).
    The Secretary shall make the designation of that official known
    through a public announcement in a national periodical."

-FOOTNOTE-
    (!1) So in original. Probably should not be capitalized.

-End-

-CITE-
    46 USC APPENDIX Sec. 1279e                                  01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER XI - FEDERAL SHIP MORTGAGE INSURANCE

-HEAD-
    Sec. 1279e. Loan guarantees for shipyard modernization and
      improvement

-STATUTE-
    (a) General authority
      The Administrator, under section 1273(a) of this Appendix and
    subject to the terms the Administrator shall prescribe, may
    guarantee or make a commitment to guarantee the payment of the
    principal of, and the interest on, an obligation for advanced
    shipbuilding technology and modern shipbuilding technology of a
    general shipyard facility located in the United States.
    (b) Applicable laws, requirements, regulations, and procedures
      Guarantees or commitments to guarantee under this section are
    subject to the extent applicable to all the laws, requirements,
    regulations, and procedures that apply to guarantees or commitments
    to guarantee made under this subchapter, except that guarantees or
    commitments to guarantee made under this section may be in the
    aggregate principal amount that does not exceed 87 1/2  percent of
    the actual cost of the advanced shipbuilding technology or modern
    shipbuilding technology.
    (c) Transfer of funds
      The Administrator may accept the transfer of funds from any other
    department, agency, or instrumentality of the United States
    Government and may use those funds to cover the cost (as defined in
    section 661a of title 2) of making guarantees or commitments to
    guarantee loans entered into under this section.
    (d) Definitions
      For purposes of this section:
        (1) The term "advanced shipbuilding technology" includes - 
          (A) numerically controlled machine tools, robots, automated
        process control equipment, computerized flexible manufacturing
        systems, associated computer software, and other technology for
        improving shipbuilding and related industrial production which
        advance the state-of-the-art; and
          (B) novel techniques and processes designed to improve
        shipbuilding quality, productivity, and practice, and to
        promote sustainable development, including engineering design,
        quality assurance, concurrent engineering, continuous process
        production technology, energy efficiency, waste minimization,
        design for recyclability or parts reuse, inventory management,
        upgraded worker skills, and communications with customers and
        suppliers.

        (2) The term "modern shipbuilding technology" means the best
      available proven technology, techniques, and processes
      appropriate to enhancing the productivity of shipyards.
        (3) The term "general shipyard facility" means - 
          (A) for operations on land - 
            (i) any structure or appurtenance thereto designed for the
          construction, repair, rehabilitation, refurbishment or
          rebuilding of any vessel (as defined in title 1) and
          including graving docks, building ways, ship lifts, wharves,
          and pier cranes;
            (ii) the land necessary for any structure or appurtenance
          described in clause (i); and
            (iii) equipment that is for the use in connection with any
          structure or appurtenance and that is necessary for the
          performance of any function referred to in subparagraph (A);

          (B) for operations other than on land, any vessel, floating
        drydock or barge built in the United States and used for,
        equipped to be used for, or of a type that is normally used for
        activities referred to in subparagraph (A)(i) of this
        paragraph.

-SOURCE-
    (June 29, 1936, ch. 858, title XI, Sec. 1112, as added Pub. L. 103-
    160, div. A, title XIII, Sec. 1357(a), Nov. 30, 1993, 107 Stat.
    1814; amended Pub. L. 109-163, div. C, title XXXV, Sec.
    3507(a)(2)(K), Jan. 6, 2006, 119 Stat. 3555.)

-MISC1-
                             PRIOR PROVISIONS                         
      Another section 1112 of act June 29, 1936, was renumbered section
    1114 and is classified to section 1279g of this Appendix.

                                AMENDMENTS                            
      2006 - Subsecs. (a), (c). Pub. L. 109-163 substituted
    "Administrator" for "Secretary" wherever appearing.

-End-

-CITE-
    46 USC APPENDIX Sec. 1279f                                  01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER XI - FEDERAL SHIP MORTGAGE INSURANCE

-HEAD-
    Sec. 1279f. Fisheries financing and capacity reduction

-STATUTE-
    (a) Authorization for guarantees; issuance of obligations
      The Secretary or Administrator is authorized to guarantee the
    repayment of debt obligations issued by entities under this
    section. Debt obligations to be guaranteed may be issued by any
    entity that has been approved by the Secretary or Administrator and
    has agreed with the Secretary or Administrator to such conditions
    as the Secretary or Administrator deems necessary for this section
    to achieve the objective of the program and to protect the interest
    of the United States.
    (b) Requirements for guaranteed obligations
      Any debt obligation guaranteed under this section shall - 
        (1) be treated in the same manner and to the same extent as
      other obligations guaranteed under this subchapter, except with
      respect to provisions of this subchapter that by their nature
      cannot be applied to obligations guaranteed under this section;
        (2) have the fishing fees established under the program paid
      into a separate subaccount of the fishing capacity reduction fund
      established under this section;
        (3) not exceed $100,000,000 in an unpaid principal amount
      outstanding at any one time for a program;
        (4) have such maturity (not to exceed 20 years), take such
      form, and contain such conditions as the Secretary or
      Administrator determines necessary for the program to which they
      relate;
        (5) have as the exclusive source of repayment (subject to the
      proviso in subsection (c)(2) of this section) and as the
      exclusive payment security, the fishing fees established under
      the program; and
        (6) at the discretion of the Secretary or Administrator be
      issued in the public market or sold to the Federal Financing
      Bank.
    (c) Fishing capacity reduction fund; establishment; availability of
      amounts; deposit or investment
      (1) There is established in the Treasury of the United States a
    separate account which shall be known as the fishing capacity
    reduction fund (referred to in this section as the "fund"). Within
    the fund, at least one subaccount shall be established for each
    program into which shall be paid all fishing fees established under
    the program and other amounts authorized for the program.
      (2) Amounts in the fund shall be available, without appropriation
    or fiscal year limitation, to the Secretary or Administrator to pay
    the cost of the program, including payments to financial
    institutions to pay debt obligations incurred by entities under
    this section: Provided, That funds available for this purpose from
    other amounts available for the program may also be used to pay
    such debt obligations.
      (3) Sums in the fund that are not currently needed for the
    purpose of this section shall be kept on deposit or invested in
    obligations of the United States.
    (d) Issuance of regulations
      The Secretary or Administrator is authorized and directed to
    issue such regulations as the Secretary or Administrator deems
    necessary to carry out this section.
    (e) "Program" defined
      For the purposes of this section, the term "program" means a
    fishing capacity reduction program established under section 1861a
    of title 16.

-SOURCE-
    (June 29, 1936, ch. 858, title XI, Sec. 1113, formerly Sec. 1111,
    as added Pub. L. 104-297, title III, Sec. 303(a), Oct. 11, 1996,
    110 Stat. 3616; amended Pub. L. 104-208, div. A, title I, Sec.
    101(a) [title II, Sec. 211(b)], Sept. 30, 1996, 110 Stat. 3009,
    3009-41; renumbered Sec. 1113 and amended Pub. L. 109-163, div. C,
    title XXXV, Sec. 3507(a)(1)(H), (d), Jan. 6, 2006, 119 Stat. 3555,
    3557.)

-MISC1-
                                AMENDMENTS                            
      2006 - Pub. L. 109-163, Sec. 3507(a)(1)(H), substituted
    "Secretary or Administrator" for "Secretary" wherever appearing.
      1996 - Subsec. (e). Pub. L. 104-208 made technical amendment to
    reference in original act which appears in text as reference to
    section 1861a of title 16.

                     EFFECTIVE DATE OF 1996 AMENDMENT                 
      Section 101(a) [title II, Sec. 211(b)] of div. A of Pub. L. 104-
    208 provided that the amendment made by that section is effective
    15 days after Oct. 11, 1996.

-End-

-CITE-
    46 USC APPENDIX Sec. 1279g                                  01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER XI - FEDERAL SHIP MORTGAGE INSURANCE

-HEAD-
    Sec. 1279g. Direct loan obligations for fisheries financing and
      capacity reduction

-STATUTE-
      (a) Notwithstanding any other provision of this subchapter, all
    obligations involving any fishing vessel, fishery facility,
    aquaculture facility, individual fishing quota, or fishing capacity
    reduction program issued under this subchapter after October 11,
    1996, shall be direct loan obligations, for which the Secretary
    shall be the obligee, rather than obligations issued to obligees
    other than the Secretary and guaranteed by the Secretary. All
    direct loan obligations under this section shall be treated in the
    same manner and to the same extent as obligations guaranteed under
    this subchapter except with respect to provisions of this
    subchapter which by their nature can only be applied to obligations
    guaranteed under this subchapter.
      (b) Notwithstanding any other provisions of this subchapter, the
    annual rate of interest which obligors shall pay on direct loan
    obligations under this section shall be fixed at two percent of the
    principal amount of such obligations outstanding plus such
    additional percent as the Secretary shall be obligated to pay as
    the interest cost of borrowing from the United States Treasury the
    funds with which to make such direct loans.

-SOURCE-
    (June 29, 1936, ch. 858, title XI, Sec. 1114, formerly Sec. 1112,
    as added Pub. L. 104-297, title III, Sec. 303(a), Oct. 11, 1996,
    110 Stat. 3616; renumbered Sec. 1114, Pub. L. 109-163, div. C,
    title XXXV, Sec. 3507(d), Jan. 6, 2006, 119 Stat. 3557.)

-End-

-CITE-
    46 USC APPENDIX Sec. 1280                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER XI - FEDERAL SHIP MORTGAGE INSURANCE

-HEAD-
    Sec. 1280. Advances to fund

-STATUTE-
      The Secretary or the Administrator of the Maritime Administration
    is authorized to advance to the Federal Ship Financing Fund from
    the "Vessel operations revolving fund" (46 U.S.C. 1241a),(!1) such
    amounts as may be required for the payment, pursuant to section
    1275 of this Appendix, of unpaid principal amounts of defaulted
    mortgages and loans and of unpaid interest thereon: Provided, That
    such advances shall be repaid to the "Vessel operations revolving
    fund" as soon as practicable consistent with the status of the
    Federal Ship Financing Fund: Provided further, That the total
    advances outstanding at any one time shall not exceed $10,000,000.

-SOURCE-
    (Pub. L. 85-469, title I, Sec. 101, June 25, 1958, 72 Stat. 231;
    Pub. L. 92-507, Sec. 2, Oct. 19, 1972, 86 Stat. 910; Pub. L. 97-31,
    Sec. 12(137), Aug. 6, 1981, 95 Stat. 166; Pub. L. 109-163, div. C,
    title XXXV, Sec. 3507(c)(2), Jan. 6, 2006, 119 Stat. 3556.)

-COD-
                               CODIFICATION                           
      "Federal Ship Financing Fund" substituted for "Federal Ship
    Mortgage Insurance Fund" to conform to change of name in the
    amendment of section 1272 of this Appendix by Pub. L. 92-507, Sec.
    2, Oct. 19, 1972, 86 Stat. 910.
      Section was not enacted as part of the Merchant Marine Act, 1936,
    which comprises this chapter.

-MISC1-
                                AMENDMENTS                            
      2006 - Pub. L. 109-163 inserted "or the Administrator of the
    Maritime Administration" after "Secretary".
      1981 - Pub. L. 97-31 struck out "of Commerce" after "Secretary".

-FOOTNOTE-
    (!1) Now 46 App. U.S.C. 1241a.

-End-

-CITE-
    46 USC APPENDIX Sec. 1280a                                  01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER XI - FEDERAL SHIP MORTGAGE INSURANCE

-HEAD-
    Sec. 1280a. Eligible shipyards

-STATUTE-
      To be eligible to receive loan guarantee assistance under title
    XI of the Merchant Marine Act, 1936 [46 App. U.S.C. 1271 et seq.],
    a shipyard must be a private shipyard located in the United States.

-SOURCE-
    (Pub. L. 103-160, div. A, title XIII, Sec. 1358, Nov. 30, 1993, 107
    Stat. 1816.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Merchant Marine Act, 1936, referred to in text, is act June
    29, 1936, ch. 858, 49 Stat. 1985, as amended. Title XI of the Act
    is classified generally to this subchapter (Sec. 1271 et seq.). For
    complete classification of this Act to the Code, see section 1245
    of this Appendix and Tables.

-COD-
                               CODIFICATION                           
      Section was enacted as part of the National Defense Authorization
    Act for Fiscal Year 1994 and also as part of the Defense
    Conversion, Reinvestment, and Transition Assistance Amendments of
    1993, and the National Shipbuilding and Shipyard Conversion Act of
    1993, and not as part of the Merchant Marine Act, 1936, which
    comprises this chapter.

-End-

-CITE-
    46 USC APPENDIX Sec. 1280b                                  01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER XI - FEDERAL SHIP MORTGAGE INSURANCE

-HEAD-
    Sec. 1280b. Annual report on program

-STATUTE-
      The Administrator of the Maritime Administration shall report to
    Congress annually on the loan guarantee program under title XI of
    the Merchant Marine Act, 1936 (46 U.S.C. App. 1271 et seq.). The
    reports shall include - 
        (1) the size, in dollars, of the portfolio of loans guaranteed;
        (2) the size, in dollars, of projects in the portfolio facing
      financial difficulties;
        (3) the number and type of projects covered;
        (4) a profile of pending loan applications;
        (5) the amount of appropriations available for new guarantees;
        (6) a profile of each project approved since the last report;
      and
        (7) a profile of any defaults since the last report.

-SOURCE-
    (Pub. L. 108-136, div. C, title XXXV, Sec. 3527, Nov. 24, 2003, 117
    Stat. 1802; Pub. L. 109-163, div. C, title XXXV, Sec. 3507(c)(3),
    Jan. 6, 2006, 119 Stat. 3556.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Merchant Marine Act, 1936, referred to in text, is act June
    29, 1936, ch. 858, 49 Stat. 1985, as amended. Title XI of the Act
    is classified generally to this subchapter (Sec. 1271 et seq.). For
    complete classification of this Act to the Code, see section 1245
    of this Appendix and Tables.

-COD-
                               CODIFICATION                           
      Section was enacted as part of the Maritime Security Act of 2003,
    and also as part of the National Defense Authorization Act for
    Fiscal Year 2004, and not as part of the Merchant Marine Act, 1936,
    which comprises this chapter.

-MISC1-
                                AMENDMENTS                            
      2006 - Pub. L. 109-163 substituted "Administrator of the Maritime
    Administration" for "Secretary of Transportation" in introductory
    provisions.

-End-

-CITE-
    46 USC APPENDIX SUBCHAPTER XII - WAR RISK
           INSURANCE                                       01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER XII - WAR RISK INSURANCE

-HEAD-
                    SUBCHAPTER XII - WAR RISK INSURANCE                

-End-

-CITE-
    46 USC APPENDIX Sec. 1281                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER XII - WAR RISK INSURANCE

-HEAD-
    Sec. 1281. Definitions

-STATUTE-
      As used in this subchapter - 
      (a) The term "American vessels" includes any vessel registered,
    enrolled, or licensed under the laws of the United States and any
    undocumented vessel owned or chartered by or made available to the
    United States or any department or agency thereof and any tug or
    barge or other watercraft (documented or undocumented) owned by a
    citizen of the United States used in essential water transportation
    or in the fishing trade or industry, except watercraft used
    exclusively in or for sport fishing.
      (b) The term "transportation in the water-borne commerce of the
    United States" includes the operation of vessels in the fishing
    trade or industry, except watercraft used exclusively in or for
    sport fishing.
      (c) The term "war risks" includes to such extent as the Secretary
    may determine - 
        (1) all or any part of any loss that is excluded from marine
      insurance coverage under a "free of capture or seizure" clause,
      or under analogous clauses; and
        (2) other losses from hostile acts, including confiscation,
      expropriation, nationalization, or deprivation.

      (d) The term "citizen of the United States" includes
    corporations, partnerships, and associations existing, authorized,
    or organized under the laws of the United States or any State,
    district, Territory, or possession thereof.
      (e) The term "Secretary" shall mean the Secretary of
    Transportation.

-SOURCE-
    (June 29, 1936, ch. 858, title XII, Sec. 1201, as added Sept. 7,
    1950, ch. 906, 64 Stat. 773; amended Pub. L. 97-31, Sec. 12(138),
    Aug. 6, 1981, 95 Stat. 166; Pub. L. 107-107, div. C, title XXXV,
    Sec. 3502, Dec. 28, 2001, 115 Stat. 1392.)

-MISC1-
                                AMENDMENTS                            
      2001 - Subsec. (c). Pub. L. 107-107 amended subsec. (c)
    generally. Prior to amendment, subsec. (c) read as follows: "The
    term 'war risks' includes to such extent as the Secretary may
    determine all or any part of those losses which are excluded from
    marine insurance coverage under a 'free of capture and seizure'
    clause, or analogous clauses."
      1981 - Subsec. (e). Pub. L. 97-31 substituted "Secretary of
    Transportation" for "Secretary of Commerce".

-End-

-CITE-
    46 USC APPENDIX Sec. 1282                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER XII - WAR RISK INSURANCE

-HEAD-
    Sec. 1282. Authority to provide insurance; consideration of risk

-STATUTE-
    (a) Authorization, approval, and consultation; criteria
      The Secretary, with the approval of the President, and after such
    consultation with interested agencies of the Government as the
    President may require, may provide insurance and reinsurance
    against loss or damage by war risks in the manner and to the extent
    provided in this subchapter, whenever it appears to the Secretary
    that such insurance adequate for the needs of the water-borne
    commerce of the United States cannot be obtained on reasonable
    terms and conditions from companies authorized to do an insurance
    business in a State of the United States.
    (b) Consideration of risk
      Any insurance or reinsurance issued under any of the provisions
    of this subchapter shall be based, insofar as practicable, upon
    consideration of the risk involved.
    (c) Condition of availability in time of war or national emergency
      Insurance and reinsurance for vessels may be provided by the
    Secretary under this subchapter only on the condition that such
    vessels be available for the United States in time of war or
    national emergency.

-SOURCE-
    (June 29, 1936, ch. 858, title XII, Sec. 1202, as added Sept. 7,
    1950, ch. 906, 64 Stat. 773; amended Pub. L. 101-115, Sec. 7(a),
    Oct. 13, 1989, 103 Stat. 694.)

-MISC1-
                                AMENDMENTS                            
      1989 - Subsec. (c). Pub. L. 101-115 added subsec. (c).

-EXEC-
              PROVISION OF MARINE WAR RISK INSURANCE COVERAGE          
      Memorandum of the President of the United States, Aug. 29, 1990,
    55 F.R. 36257, provided:
      Memorandum for the Secretary of State and the Secretary of
    Transportation
      By virtue of the authority vested in me by the Constitution and
    laws of the United States, including 3 U.S.C. 301 and section 1202
    of the Merchant Marine Act, 1936, as amended (Act), 46 U.S.C. App.
    1282, I hereby:
      approve the provision by the Secretary of Transportation of
    insurance or reinsurance of vessels (including cargoes and crew)
    entering the Middle East region against loss or damage by war risks
    in the manner and to the extent provided in Title XII of the Act,
    46 U.S.C. App. 1281, et seq., for purposes of responding to the
    current crisis in the Middle East, whenever, after consultation
    with the Department of State, it appears to the Secretary of
    Transportation that such insurance adequate for the needs of the
    waterborne commerce of the United States cannot be obtained on
    reasonable terms and conditions from companies authorized to do an
    insurance business in a State of the United States. This approval
    is effective for sixty days. I hereby delegate to the Secretary of
    Transportation, in consultation with the Secretary of State and the
    Director of Office of Management and Budget, the authority vested
    in me by section 1202 of the Act, to approve the provision of
    insurance or reinsurance for these purposes after the expiration of
    the sixty days.
      The Secretary of Transportation is directed to bring this
    approval to the immediate attention of all operators and to arrange
    for its publication in the Federal Register.
                                                            George Bush.

-End-

-CITE-
    46 USC APPENDIX Sec. 1283                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER XII - WAR RISK INSURANCE

-HEAD-
    Sec. 1283. Persons, property, and interests insurable

-STATUTE-
      The Secretary may provide the insurance and reinsurance
    authorized by section 1282 of this Appendix with respect to the
    following persons, property, or interest:
      (a) American vessels, including vessels under construction,
    foreign-flag vessels owned by citizens of the United States or
    engaged in transportation in the water-borne commerce of the United
    States or in such other transportation by water or such other
    services as may be deemed by the Secretary to be in the interest of
    the national defense or the national economy of the United States,
    when so engaged. In determining whether to grant such insurance or
    reinsurance to foreign-flag vessels, the Secretary shall further
    consider the characteristics, the employment, and the general
    management of the vessel by the owner or charterer. American- and
    foreign-flag vessels so insured or reinsured shall be subject to
    such vessel location reporting requirements as the Secretary may
    establish by regulation.
      (b) Cargoes shipped or to be shipped on any such vessels,
    including shipments by express or registered mail; cargoes owned by
    citizens or residents of the United States, its Territories or
    possessions; cargoes imported to, or exported from, the United
    States, its Territories or possessions, and cargoes sold or
    purchased by citizens or residents of the United States, its
    Territories or possessions, under contracts of sale or purchase by
    the terms of which the risk of loss by war risks or the obligation
    to provide insurance against such risks is assumed by or falls upon
    a citizen or resident of the United States, its Territories or
    possessions; cargoes shipped between ports in the United States, or
    between ports in the United States and its Territories and
    possessions, or between ports in such Territories or possessions.
    For the purposes of this subchapter, the term "cargo" shall include
    loaded or empty containers located aboard such vessels.
      (c) The disbursements, including advances to masters and general
    average disbursements, and freight and passage moneys of such
    vessels.
      (d) The personal effects of the masters, officers, and crews of
    such vessels, and of other persons transported on such vessels.
      (e) Masters, officers, members of the crews of such vessels and
    other persons employed or transported thereon against loss of life,
    injury, detention by an enemy of the United States following
    capture.
      (f) Statutory or contractual obligations or other liabilities of
    such vessels or of the owner or charterer of such vessels of the
    nature customarily covered by insurance.

-SOURCE-
    (June 29, 1936, ch. 858, title XII, Sec. 1203, as added Sept. 7,
    1950, ch. 906, 64 Stat. 773; amended Pub. L. 94-523, Secs. 1-3,
    Oct. 17, 1976, 90 Stat. 2474.)

-MISC1-
                                AMENDMENTS                            
      1976 - Subsec. (a). Pub. L. 94-523, Sec. 1, prescribed criteria
    to be considered in granting insurance or reinsurance to foreign-
    flag vessels and made insured or reinsured vessels subject to
    vessel location reporting requirements established by regulation.
      Subsec. (b). Pub. L. 94-523, Sec. 2, defined term "cargo" to
    include loaded or empty containers located aboard the vessels.
      Subsec. (f). Pub. L. 94-523, Sec. 3, substituted "Statutory or"
    for "Statutory on".

-End-

-CITE-
    46 USC APPENDIX Sec. 1284                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER XII - WAR RISK INSURANCE

-HEAD-
    Sec. 1284. Risks other than war risks

-STATUTE-
      Whenever the Secretary shall insure any risk included under
    subsections (d), (e), or (f) of section 1283 of this Appendix,
    insofar as it concerns liabilities relating to the masters,
    officers, and crews of such vessels or to other persons transported
    thereon, the insurance on such risks may include risks other than
    war risks to the extent that the Secretary determines to be
    necessary or advisable.

-SOURCE-
    (June 29, 1936, ch. 858, title XII, Sec. 1204, as added Sept. 7,
    1950, ch. 906, 64 Stat. 774.)

-End-

-CITE-
    46 USC APPENDIX Sec. 1285                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER XII - WAR RISK INSURANCE

-HEAD-
    Sec. 1285. Insurance of property of Government departments and
      agencies

-STATUTE-
      (a) Any department or agency of the United States may, with the
    approval of the President, procure from the Secretary any of the
    insurance as provided for in this subchapter, except as provided in
    sections 17302 and 17303(a) and (b) of title 40.
      (b) The Secretary is authorized with such approval to provide
    such insurance at the request of the Secretary of Defense, and such
    other agencies as the President may prescribe, without premium in
    consideration of the agreement of the Secretary of Defense or such
    agency to indemnify the Secretary against all losses covered by
    such insurance, and the Secretary of Defense and such other
    agencies are authorized to execute such indemnity agreement with
    the Secretary. The signature of the President (or of an official
    designated by the President) on the agreement shall be treated as
    an expression of the approval required under section 1282(a) of
    this Appendix to provide the insurance.

-SOURCE-
    (June 29, 1936, ch. 858, title XII, Sec. 1205, as added Sept. 7,
    1950, ch. 906, 64 Stat. 774; amended Pub. L. 105-261, div. A, title
    X, Sec. 1071(a), Oct. 17, 1998, 112 Stat. 2137.)

-COD-
                               CODIFICATION                           
      In subsec. (a), "sections 17302 and 17303(a) and (b) of title 40"
    substituted for "sections 1 and 2 of the Act of July 8, 1937 (50
    Stat. 479)" on authority of Pub. L. 107-217, Sec. 5(c), Aug. 21,
    2002, 116 Stat. 1303, the first section of which enacted Title 40,
    Public Buildings, Property, and Works.

-MISC1-
                                AMENDMENTS                            
      1998 - Subsec. (b). Pub. L. 105-261 inserted at end "The
    signature of the President (or of an official designated by the
    President) on the agreement shall be treated as an expression of
    the approval required under section 1282(a) of this Appendix to
    provide the insurance."

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Pub. L. 105-261, div. A, title X, Sec. 1071(b), Oct. 17, 1998,
    112 Stat. 2137, provided that: "The amendment made by subsection
    (a) [amending this section] shall apply only to a signature of the
    President (or of an official designated by the President) on or
    after the date of the enactment of this Act [Oct. 17, 1998]."

-EXEC-
                         VESSEL WAR RISK INSURANCE                     
      Memorandum of President of the United States, Oct. 7, 1994, 59
    F.R. 52395, provided:
      Memorandum for the Secretary of Defense [and] the Secretary of
    Transportation
      By virtue of the authority vested in me by section 1205 of the
    Merchant Marine Act of 1936, as amended (46 U.S.C. App. 1285), I
    hereby approved [sic] the procurement of any insurance within the
    scope of section 1205 from the Secretary of Transportation by the
    Department of Defense for vessels under charter, contract, tender,
    or agreement with the Department of Defense, entering the
    territorial waters of Haiti excluded under commercial war risk
    trading warranties, whenever the Secretary of Defense determines
    such insurance to be necessary. This approval is effective for 60
    days.
      The Secretary of Transportation is directed to bring this
    approval to the immediate attention of all operators.
                                                     William J. Clinton.

-End-

-CITE-
    46 USC APPENDIX Sec. 1286                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER XII - WAR RISK INSURANCE

-HEAD-
    Sec. 1286. Liability insurance for persons performing services or
      providing facilities for vessels

-STATUTE-
      The Secretary is authorized to provide insurance for any person
    who performs services or provides facilities for or with respect to
    any American- or foreign-flag vessel, public or private, against
    legal liabilities that may be incurred by such person in connection
    with the performance of such services or the providing of such
    facilities. Such insurance shall not be issued against liability to
    employees in respect of employers' liability or workmen's
    compensation. No such insurance shall be provided unless, in the
    opinion of the Secretary, such insurance is required in the
    prosecution of the war effort or in connection with national
    defense and cannot be obtained at reasonable rates or upon
    reasonable conditions from approved companies authorized to do
    insurance business in any State of the United States.

-SOURCE-
    (June 29, 1936, ch. 858, title XII, Sec. 1206, as added Sept. 7,
    1950, ch. 906, 64 Stat. 774; amended Aug. 3, 1956, ch. 929, Sec. 5,
    70 Stat. 986.)

-MISC1-
                                AMENDMENTS                            
      1956 - Act Aug. 3, 1956, struck out "during any time the United
    States is at war or during any period of emergency declared to
    exist by the President of the United States" after "authorized" in
    first sentence.

-End-

-CITE-
    46 USC APPENDIX Sec. 1287                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER XII - WAR RISK INSURANCE

-HEAD-
    Sec. 1287. Reinsurance; rates; allowances to insurance carriers

-STATUTE-
      (a) To the extent that he is authorized by this subchapter to
    provide marine, war risk, and liability insurance, the Secretary
    may reinsure, in whole or in part, any company authorized to do an
    insurance business in any State of the United States. The Secretary
    may reinsure with, or cede or retrocede to, any such company any
    insurance or reinsurance provided by the Secretary in accordance
    with the provisions of this subchapter.
      (b) Reinsurance shall not be provided by the Secretary at rates
    less than nor obtained by the Secretary at rates more than the
    rates established by the Secretary on the same or similar risks or
    the rates charged by the insurance carrier for the insurance so
    reinsured whichever is most advantageous to the Secretary, except
    that the Secretary may make to the insurance carrier such
    allowances for expenses on account of the cost of services rendered
    or facilities furnished as he deems reasonably to accord with good
    business practice, but such allowance to the carrier shall not
    provide for any payment by the carrier on account of solicitation
    for or stimulation of insurance business.

-SOURCE-
    (June 29, 1936, ch. 858, title XII, Sec. 1207, as added Sept. 7,
    1950, ch. 906, 64 Stat. 775.)

-End-

-CITE-
    46 USC APPENDIX Sec. 1288                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER XII - WAR RISK INSURANCE

-HEAD-
    Sec. 1288. Insurance fund; investments; appropriations

-STATUTE-
      (a) The Secretary shall create an insurance fund in the Treasury
    to enable him to carry out the provisions of this subchapter.
    Moneys appropriated by Congress to carry out the provisions of this
    subchapter and all moneys received from premiums, salvage, or other
    recoveries and all receipts in connection with this subchapter
    shall be deposited in the Treasury to the credit of such fund. The
    Secretary of Transportation may request the Secretary of the
    Treasury to invest such portion of the Fund as is not, in the
    judgment of the Secretary of Transportation, required to meet the
    current needs of the fund. Such investments shall be made by the
    Secretary of the Treasury in public debt securities of the United
    States, with maturities suitable to the needs of the fund, and
    bearing interest rates determined by the Secretary of the Treasury,
    taking into consideration current market yields on outstanding
    marketable obligations of the United States of comparable maturity.
    Upon the request of the Secretary of Transportation, the Secretary
    of the Treasury may invest or reinvest all or any part of the fund
    in securities of the United States or in securities guaranteed as
    to principal and interest by the United States. The interest and
    benefits accruing from such securities shall be deposited to the
    credit of the fund.
      (b) Such sums as shall be necessary to carry out the provisions
    of this subchapter are authorized to be appropriated to such fund.

-SOURCE-
    (June 29, 1936, ch. 858, title XII, Sec. 1208, as added Sept. 7,
    1950, ch. 906, 64 Stat. 775; amended Pub. L. 87-743, Oct. 3, 1962,
    76 Stat. 740; Pub. L. 97-31, Sec. 12(139), Aug. 6, 1981, 95 Stat.
    166; Pub. L. 108-375, div. C, title XXXV, Sec. 3502(b), Oct. 28,
    2004, 118 Stat. 2195.)

-MISC1-
                                AMENDMENTS                            
      2004 - Subsec. (a). Pub. L. 108-375 substituted "The Secretary of
    Transportation may request the Secretary of the Treasury to invest
    such portion of the Fund as is not, in the judgment of the
    Secretary of Transportation, required to meet the current needs of
    the fund. Such investments shall be made by the Secretary of the
    Treasury in public debt securities of the United States, with
    maturities suitable to the needs of the fund, and bearing interest
    rates determined by the Secretary of the Treasury, taking into
    consideration current market yields on outstanding marketable
    obligations of the United States of comparable maturity." for
    "Payments of return premiums, losses, settlements, judgments, and
    all liabilities incurred by the United States under this subchapter
    shall be made from such fund through the Division of Disbursement,
    Treasury Department."
      1981 - Subsec. (a). Pub. L. 97-31 substituted "Secretary of
    Transportation" for "Secretary of Commerce".
      1962 - Subsec. (a). Pub. L. 87-743 authorized the investment or
    reinvestment of all or part of the fund in securities of the United
    States or in securities guaranteed as to principal and interest by
    the United States, and required the interest and benefits accruing
    from such securities to be deposited to the credit of the fund.

-End-

-CITE-
    46 USC APPENDIX Sec. 1288a                                  01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER XII - WAR RISK INSURANCE

-HEAD-
    Sec. 1288a. Transfer of funds from Vessel Operations Revolving Fund

-STATUTE-
      For the war-risk insurance revolving fund, authorized by this
    subchapter, the Secretary of Transportation is authorized to
    transfer to said fund, at such times as it may become necessary in
    order to place into effect the insurance coverage authorized by
    this subchapter, and in such amounts as he may determine, not to
    exceed a total of $10,000,000 from the "Vessel Operations Revolving
    Fund".

-SOURCE-
    (Nov. 1, 1951, ch. 664, ch. VII, 65 Stat. 746; Pub. L. 97-31, Sec.
    12(140), Aug. 6, 1981, 95 Stat. 166.)

-COD-
                               CODIFICATION                           
      Section was not enacted as part of the Merchant Marine Act, 1936,
    which comprises this chapter.

-MISC1-
                                AMENDMENTS                            
      1981 - Pub. L. 97-31 substituted "Secretary of Transportation"
    for "Secretary of Commerce".

-End-

-CITE-
    46 USC APPENDIX Sec. 1289                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER XII - WAR RISK INSURANCE

-HEAD-
    Sec. 1289. Administrative provisions

-STATUTE-
    (a) Issuance of policies, rules, and regulations; settlement of
      claims; valuation; rejection and review of valuation
      (1) The Secretary, in the administration of this subchapter, may
    issue such policies, rules, and regulations as he deems proper and
    may adjust and pay losses, compromise and settle claims, whether in
    favor of or against the United States and pay the amount of any
    judgment rendered against the United States in any suit, or the
    amount of any settlement agreed upon, in respect of any claim under
    insurance authorized by this subchapter.
      (2) In respect of hull insurance, the valuation in the policy for
    actual or constructive total loss of the vessel insured shall be a
    stated valuation (exclusive of National Defense features paid for
    by the Government) determined by the Secretary which shall not
    exceed the amount that would be payable if the vessel had been
    requisitioned for title under section 1242(a) of this Appendix at
    the time of the attachment of the insurance under said policy:
    Provided, That the insured shall have the right within sixty days
    after the attachment of the insurance under said policy, or within
    sixty days after determination of such valuation by the Secretary,
    whichever is later, to reject such valuation, and shall pay, at the
    rate provided for in said policy, premiums upon such asserted
    valuation as the insured shall specify at the time of rejection,
    but such asserted valuation shall not operate to the prejudice of
    the Government in any subsequent action on the policy. In the event
    of the actual or constructive total loss of the vessel, if the
    insured has not rejected such valuation the amount of any claim
    therefor which is adjusted, compromised, settled, adjudged, or paid
    shall not exceed such stated amount, but if the insured has so
    rejected such valuation, the insured shall be paid as a tentative
    advance only, 75 per centum of such valuation so determined by the
    Secretary and shall be entitled to sue the United States in a court
    having jurisdiction of such claims to recover such valuation as
    would be equal to the just compensation which such court determines
    would have been payable if the vessel had been requisitioned for
    title under section 1242(a) of this Appendix at the time of the
    attachment of the insurance under said policy: Provided, That in
    the event of an election by the insured to reject the stated
    valuation fixed by the Secretary and to sue in the courts, the
    amount of the judgment will be payable without regard to the
    limitations contained in section 1242-1 (!1) of this Appendix,
    although the excess of any amounts advanced on account of just
    compensation over the amount of the court judgment will be required
    to be refunded. In the event of such court determination, premiums
    under the policy shall be adjusted on the basis of the valuation as
    finally determined and of the rate provided for in said policy.

    (b) Forms and policies; rates; fees
      The Secretary may prescribe and change forms and policies, and
    fix, adjust, and change the amounts insured and rates of premium
    provided for in this subchapter. The Secretary may charge and
    collect an annual fee in an amount calculated to cover the expenses
    of processing applications for insurance, the employment of
    underwriting agents, and the appointment of experts.
    (c) Commercial practice controlling; limitation on fees
      The Secretary, in administering this subchapter, may exercise his
    powers, perform his duties and functions, and make his
    expenditures, in accordance with commercial practice in the marine
    insurance business. Except as authorized in subsection (d) of this
    section, no insurance broker or other person acting in a similar
    intermediary capacity shall be paid any fee or other consideration
    by the Secretary by virtue of his participation in arranging any
    insurance wherein the Secretary directly insures any of the risk
    thereof.
    (d) Underwriting agents
      The Secretary may, and whenever he finds it practical to do so
    shall, employ domestic companies or groups of domestic companies
    authorized to do a marine insurance business in any State of the
    United States, to act as his underwriting agent. The Secretary may
    allow such companies or groups of companies fair and reasonable
    compensation for servicing insurance written by such companies or
    groups of companies as underwriting agent for the Secretary. The
    services of such underwriting agents may be utilized in the
    adjustment of claims under insurance provided by this subchapter,
    but no claim shall be paid unless and until it has been approved by
    the Secretary. Such compensation may include an allowance for
    expenses reasonably incurred by such agent, but such allowance
    shall not include any payment by such agent on account of
    solicitation for or stimulation of insurance business.
    (e) Employment of marine insurance experts
      The Secretary without regard to the laws, rules, or regulations
    relating to the employment of employees of the United States may
    appoint and prescribe the duties of such number of experts in
    marine insurance as he deems necessary under this subchapter.
    (f) Utilization of services of other Government agencies
      The Secretary with the consent of any executive department,
    independent establishment, or other agency of the Government,
    including any field service thereof, may avail himself of the use
    of information, services, facilities, officers, and employees
    thereof in carrying out the provisions of this subchapter.

-SOURCE-
    (June 29, 1936, ch. 858, title XII, Sec. 1209, as added Sept. 7,
    1950, ch. 906, 64 Stat. 775; amended Aug. 3, 1956, ch. 929, Sec. 1,
    70 Stat. 984; Pub. L. 88-478, Sec. 1, Aug. 22, 1964, 78 Stat. 587;
    Pub. L. 94-523, Sec. 4, Oct. 17, 1976, 90 Stat. 2474.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 1242-1 of this Appendix, referred to in subsec. (a)(2),
    was in the original "the twelfth paragraph under the heading
    Maritime Activities in title I of the Department of Commerce and
    Related Agencies Appropriation Act, 1956, in the tenth paragraph
    under the heading Maritime Activities in title III of the
    Department of State, Justice, and Commerce, and the United States
    Information Agency Appropriation Act, 1955, in the eleventh
    paragraph under the heading 'Maritime Activities' in title III of
    the Department of Justice, State, and Commerce Appropriation Act,
    1954, the tenth paragraph under the heading 'Operating Differential
    Subsidies' in title II of the Independent Offices Appropriation
    Act, 1953, the corresponding paragraphs of the Independent Offices
    Appropriation Act, 1952, and the Third Supplemental Appropriation
    Act, 1951". Section 1242-1 was not repeated in appropriation acts
    subsequent to Pub. L. 85-469 and was omitted from the Code.

-MISC1-
                                AMENDMENTS                            
      1976 - Subsec. (b). Pub. L. 94-523 authorized imposition and
    collection of an annual fee to cover expenses of processing
    applications for insurance, employment of underwriting agents, and
    appointment of experts.
      1964 - Subsec. (a)(2). Pub. L. 88-478 struck out provisions which
    required for purposes of hull insurance, in the case of a
    construction-subsidized vessel, that the valuation determined for
    actual or constructive loss for the period of insurance prior to
    requisition for title or use, be reduced by such proportion as the
    amount of construction subsidy paid with respect to the vessel
    bears to the entire construction cost and capital improvements
    thereof (excluding the cost of national defense features), and for
    the period of insurance after requisition for use limited the
    valuation to the amount which would be payable under section 1212
    of this Appendix.
      1956 - Subsec. (a). Act Aug. 3, 1956, struck out provisions
    limiting settlement of claims of vessels insured under this
    subchapter to vessel's fair and reasonable value, designating the
    remaining provisions, as so amended, as par. (1), and added par.
    (2).

                     EFFECTIVE DATE OF 1964 AMENDMENT                 
      Section 2 of Pub. L. 88-478 provided that: "The amendments made
    by this Act [amending this section] shall be applicable to war risk
    insurance coverage attaching after the date of enactment [Aug. 22,
    1964]."

             AMENDMENT OF INSURANCE IN FORCE ON AUGUST 3, 1956         
      Section 4 of act Aug. 3, 1956, provided that: "All war-risk
    insurance issued under title XII of the Merchant Marine Act, 1936
    [this subchapter], which is in force on the date of the enactment
    of this Act [Aug. 3, 1956] shall, as of the beginning of such date,
    be deemed to have been amended to conform to the requirements of
    section 1209 of the Merchant Marine Act, 1936 [this section], as
    amended by this Act unless the insured, within ten days after such
    date, objects to such amendment."

-FOOTNOTE-
    (!1) See References in Text note below.

-End-

-CITE-
    46 USC APPENDIX Sec. 1290                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER XII - WAR RISK INSURANCE

-HEAD-
    Sec. 1290. Seamen's rights unaffected

-STATUTE-
      This subchapter shall not affect rights of seamen under existing
    law.

-SOURCE-
    (June 29, 1936, ch. 858, title XII, Sec. 1210, as added Sept. 7,
    1950, ch. 906, 64 Stat. 776.)

-End-

-CITE-
    46 USC APPENDIX Sec. 1291                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER XII - WAR RISK INSURANCE

-HEAD-
    Sec. 1291. Reports to Congress

-STATUTE-
      The Secretary shall include in his annual report to Congress a
    detailed statement of all activities and of all expenditures and
    receipts under this subchapter for the period covered by such
    report.

-SOURCE-
    (June 29, 1936, ch. 858, title XII, Sec. 1211, as added Sept. 7,
    1950, ch. 906, 64 Stat. 776; amended Pub. L. 89-348, Sec. 1(7),
    Nov. 8, 1965, 79 Stat. 1310.)

-MISC1-
                                AMENDMENTS                            
      1965 - Pub. L. 89-348 repealed provisions which required
    quarterly reports of contracts entered into, proposed contracts,
    and general progress with respect to war risk insurance activities
    under this chapter.

-End-

-CITE-
    46 USC APPENDIX Sec. 1292                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER XII - WAR RISK INSURANCE

-HEAD-
    Sec. 1292. Actions on claims for losses; jurisdiction of courts;
      limitation of actions

-STATUTE-
      Upon disagreement as to a loss insured under this subchapter,
    suit may be maintained against the United States in admiralty in
    the district in which the claimant or his agent resides, and this
    remedy shall be exclusive of any other action by reason of the same
    subject matter against any agent or employee of the United States
    employed or retained under this subchapter. If the claimant has no
    residence in the United States, suit may be brought in the district
    court of the District of Columbia or in such other district court
    in which the Attorney General of the United States agrees to accept
    service. Such suits shall be heard and determined under the
    provisions of the Act of March 9, 1920, as amended (known as the
    Suits in Admiralty Act) [46 App. U.S.C. 741 et seq.]. All persons
    having or claiming or who might have an interest in such insurance,
    may be made parties either initially or upon the motion of either
    party. In any case where the Secretary acknowledges the
    indebtedness of the United States on account of such insurance, and
    there is a dispute as to the persons entitled to receive payment,
    the United States may bring an action in the nature of a bill of
    interpleader against such parties, in the District Court for the
    District of Columbia, or in the district court of the district in
    which any such person resides. In such actions any party, if not a
    resident of or found within the district, may be brought in by
    order of court served in such reasonable manner as the court
    directs. If the court is satisfied that persons unknown might
    assert a claim on account of such insurance, it may direct service
    upon such persons unknown by publication in the Federal Register.
    Judgment in any such suit shall discharge the United States from
    further liability to any parties to such action, and to all persons
    when service by publication upon persons unknown is directed by the
    court. The period within which suits may be commenced contained in
    said Suits in Admiralty Act shall, if claim be filed therefor
    within such period, be suspended from such time of filing until the
    claim shall have been administratively denied by the Secretary and
    for sixty days thereafter: Provided, however, That such claim shall
    be deemed to have been administratively denied if not acted upon
    within six months after the time of filing, unless the Secretary
    for good cause shown shall have otherwise agreed with the claimant.

-SOURCE-
    (June 29, 1936, ch. 858, title XII, Sec. 1212, as added Sept. 7,
    1950, ch. 906, 64 Stat. 776.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Suits in Admiralty Act, referred to in text, is act Mar. 9,
    1920, ch. 95, 41 Stat. 525, as amended, which is classified
    generally to chapter 20 (Sec. 741 et seq.) of this Appendix. For
    complete classification of this Act to the Code, see Short Title
    note set out under section 741 of this Appendix and Tables.

-End-

-CITE-
    46 USC APPENDIX Sec. 1293                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER XII - WAR RISK INSURANCE

-HEAD-
    Sec. 1293. Additional insurance with other underwriters

-STATUTE-
      A person having an insurable interest in a vessel may, with the
    approval of the Secretary, insure with other underwriters in an
    amount in excess of the amount insured with the Secretary of
    Transportation, and in that event the Secretary of Transportation
    shall not be entitled to the benefit of such insurance.

-SOURCE-
    (June 29, 1936, ch. 858, title XII, Sec. 1213, as added Sept. 7,
    1950, ch. 906, 64 Stat. 777; amended Pub. L. 97-31, Sec. 12(141),
    Aug. 6, 1981, 95 Stat. 166.)

-MISC1-
                                AMENDMENTS                            
      1981 - Pub. L. 97-31 substituted "Secretary of Transportation"
    for "Secretary of Commerce" in two places.

-End-

-CITE-
    46 USC APPENDIX Sec. 1294                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER XII - WAR RISK INSURANCE

-HEAD-
    Sec. 1294. Expiration of authority to provide insurance

-STATUTE-
      The authority of the Secretary to provide insurance and
    reinsurance under this subchapter shall expire December 31, 2010.

-SOURCE-
    (June 29, 1936, ch. 858, title XII, Sec. 1214, as added Sept. 7,
    1950, ch. 906, 64 Stat. 777; amended Aug. 3, 1955, ch. 492, 69
    Stat. 440; Pub. L. 86-120, July 31, 1959, 73 Stat. 266; Pub. L. 89-
    89, July 27, 1965, 79 Stat. 264; Pub. L. 91-469, Sec. 34, Oct. 21,
    1970, 84 Stat. 1035; Pub. L. 94-523, Sec. 5, Oct. 17, 1976, 90
    Stat. 2474; Pub. L. 96-195, Feb. 25, 1980, 94 Stat. 63; Pub. L. 99-
    59, July 3, 1985, 99 Stat. 110; Pub. L. 101-115, Sec. 7(b), Oct.
    13, 1989, 103 Stat. 694; Pub. L. 104-106, div. A, title X, Sec.
    1094, Feb. 10, 1996, 110 Stat. 461; Pub. L. 104-239, Sec. 12, Oct.
    8, 1996, 110 Stat. 3134; Pub. L. 106-65, div. C, title XXXVI, Sec.
    3603, Oct. 5, 1999, 113 Stat. 976; Pub. L. 108-375, div. C, title
    XXXV, Sec. 3502(a), Oct. 28, 2004, 118 Stat. 2195.)

-MISC1-
                                AMENDMENTS                            
      2004 - Pub. L. 108-375 substituted "December 31, 2010" for "June
    30, 2005".
      1999 - Pub. L. 106-65 substituted "June 30, 2005" for "June 30,
    2000".
      1996 - Pub. L. 104-106 and Pub. L. 104-239 amended section
    identically, substituting "June 30, 2000" for "June 30, 1995".
      1989 - Pub. L. 101-115 substituted "June 30, 1995" for "June 30,
    1990".
      1985 - Pub. L. 99-59 substituted "June 30, 1990" for "September
    30, 1984".
      1980 - Pub. L. 96-195 substituted "September 30, 1984" for
    "September 30, 1979".
      1976 - Pub. L. 94-523 substituted "September 30, 1979" for
    "September 7, 1975".
      1970 - Pub. L. 91-469 substituted "September 7, 1975" for "twenty
    years from September 7, 1950".
      1965 - Pub. L. 89-89 extended authority of Secretary to provide
    insurance and reinsurance for an additional five years.
      1959 - Pub. L. 86-120 extended authority of Secretary to provide
    insurance and reinsurance for an additional five years.
      1955 - Act Aug. 3, 1955, extended authority of Secretary to
    provide insurance and reinsurance for an additional five years.

-End-

-CITE-
    46 USC APPENDIX SUBCHAPTER XIII - MARITIME
           EDUCATION AND TRAINING                          01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER XIII - MARITIME EDUCATION AND TRAINING

-HEAD-
             SUBCHAPTER XIII - MARITIME EDUCATION AND TRAINING         

-End-

-CITE-
    46 USC APPENDIX Sec. 1295                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER XIII - MARITIME EDUCATION AND TRAINING

-HEAD-
    Sec. 1295. Congressional declaration of policy

-STATUTE-
      It is the policy of the United States that merchant marine
    vessels of the United States should be operated by highly trained
    and efficient citizens of the United States and that the United
    States Navy and the merchant marine of the United States should
    work closely together to promote the maximum integration of the
    total seapower forces of the United States. In furtherance of this
    policy - 
        (1) the Secretary of Transportation is authorized to take the
      steps necessary to provide for the education and training of
      citizens of the United States who are capable of providing for
      the safe and efficient operation of the merchant marine of the
      United States at all times and as a naval and military auxiliary
      in time of war or national emergency; and
        (2) the Secretary of Navy, in cooperation with the Maritime
      Administrator and the head of each State maritime academy, shall
      assure that the training of future merchant marine officers at
      the United States Merchant Marine Academy and at the State
      maritime academies includes programs for naval science training
      in the operation of merchant marine vessels as a naval and
      military auxiliary and that naval officer training programs for
      the training of future officers, insofar as possible, be
      maintained at designated maritime academies consistent with
      United States Navy standards and needs.

-SOURCE-
    (June 29, 1936, ch. 858, title XIII, Sec. 1301, as added Pub. L. 96-
    453, Sec. 2, Oct. 15, 1980, 94 Stat. 1997; amended Pub. L. 97-31,
    Sec. 12(142), Aug. 6, 1981, 95 Stat. 166.)

-MISC1-
                                AMENDMENTS                            
      1981 - Par. (1). Pub. L. 97-31, Sec. 12(142)(A), substituted
    "Secretary of Transportation" for "Secretary of Commerce".
      Par. (2). Pub. L. 97-31, Sec. 12(142)(B), substituted "Maritime
    Administrator" for "Assistant Secretary of Commerce for Maritime
    Affairs".

                              EFFECTIVE DATE                          
      Section 4 of Pub. L. 96-453 provided that: "This Act [enacting
    this subchapter, amending sections 1119 and 1244 of this Appendix,
    and repealing sections 1126, 1126a-1 to 1126d, 1331 to 1334, and
    1381 to 1388 of former Title 46, Shipping] shall take effect on
    October 1, 1981."

                                SHORT TITLE                            
      Section 1 of Pub. L. 96-453 provided that: "This Act [enacting
    this subchapter, amending sections 1119 and 1244 of this Appendix,
    and repealing sections 1126, 1126a-1 to 1126d, 1331 to 1334, and
    1381 to 1388 of former Title 46, Shipping] may be cited as the
    'Maritime Education and Training Act of 1980'."

           MARITIME POLLUTION PREVENTION TRAINING PROGRAM STUDY       
      Pub. L. 101-380, title IV, Sec. 4117, Aug. 18, 1990, 104 Stat.
    523, provided that: "The Secretary shall conduct a study to
    determine the feasibility of a Maritime Oil Pollution Prevention
    Training program to be carried out in cooperation with approved
    maritime training institutions. The study shall assess the costs
    and benefits of transferring suitable vessels to selected maritime
    training institutions, equipping the vessels for oil spill
    response, and training students in oil pollution response skills.
    The study shall be completed and transmitted to the Congress no
    later than one year after the date of the enactment of this Act
    [Aug. 18, 1990]."

-End-

-CITE-
    46 USC APPENDIX Sec. 1295a                                  01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER XIII - MARITIME EDUCATION AND TRAINING

-HEAD-
    Sec. 1295a. Definitions

-STATUTE-
      For purposes of this subchapter - 
        (1) the term "Secretary" means the Secretary of Transportation;
        (2) the term "Academy" means the United States Merchant Marine
      Academy located at Kings Point, New York which is maintained
      under section 1295b of this Appendix;
        (3) the term "State maritime academy" means any maritime
      academy or college which is assisted under section 1295c of this
      Appendix and which is sponsored by any State or territory of the
      United States or, in the case of a regional maritime academy or
      college, sponsored by any group of States or territories of the
      United States, or both;
        (4) the term "merchant marine officer" means any person who
      holds a license issued by the United States Coast Guard which
      authorizes service - 
          (A) as a master, mate, or pilot on board any vessel of 1,000
        gross tons or more as measured under section 14502 of title 46,
        or an alternate tonnage measured under section 14302 of that
        title as prescribed by the Secretary under section 14104 of
        that title which is documented under the laws of the United
        States and which operates on the oceans or on the Great Lakes;
        or
          (B) as an engineer officer on board any vessel propelled by
        machinery of 4,000 horsepower or more which is documented under
        the laws of the United States; and

        (5) the term "cost of education provided" means the financial
      costs incurred by the Federal Government for providing training
      or financial assistance to students at the United States Merchant
      Marine Academy and the State maritime academies, including direct
      financial assistance, room, board, classroom academics, and other
      training activities.

-SOURCE-
    (June 29, 1936, ch. 858, title XIII, Sec. 1302, as added Pub. L. 96-
    453, Sec. 2, Oct. 15, 1980, 94 Stat. 1997; amended Pub. L. 97-31,
    Sec. 12(143), Aug. 6, 1981, 95 Stat. 166; Pub. L. 104-324, title
    VII, Sec. 708, Oct. 19, 1996, 110 Stat. 3934; Pub. L. 108-136, div.
    C, title XXXV, Sec. 3515(a), Nov. 24, 2003, 117 Stat. 1792.)

-MISC1-
                                AMENDMENTS                            
      2003 - Par. (5). Pub. L. 108-136 added par. (5).
      1996 - Par. (4)(A). Pub. L. 104-324 inserted "as measured under
    section 14502 of title 46, or an alternate tonnage measured under
    section 14302 of that title as prescribed by the Secretary under
    section 14104 of that title" after "1,000 gross tons or more".
      1981 - Par. (1). Pub. L. 97-31 substituted "Secretary of
    Transportation" for "Secretary of Commerce".

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      For transfer of authorities, functions, personnel, and assets of
    the Coast Guard, including the authorities and functions of the
    Secretary of Transportation relating thereto, to the Department of
    Homeland Security, and for treatment of related references, see
    sections 468(b), 551(d), 552(d), and 557 of Title 6, Domestic
    Security, and the Department of Homeland Security Reorganization
    Plan of November 25, 2002, as modified, set out as a note under
    section 542 of Title 6.

-End-

-CITE-
    46 USC APPENDIX Sec. 1295b                                  01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER XIII - MARITIME EDUCATION AND TRAINING

-HEAD-
    Sec. 1295b. Maintenance of Academy

-STATUTE-
    (a) Duty of Secretary
      The Secretary shall maintain the Academy for providing
    instruction to individuals to prepare them for service in the
    merchant marine of the United States.
    (b) Nomination and appointment of cadets; designation and licensing
      of individuals from Trust Territory of Pacific Islands, Western
      Hemisphere nations and nations other than United States
      (1) Each Senator and Member of the House of Representatives, the
    Panama Canal Commission, the Governor of the Northern Mariana
    Islands, and the Delegate from American Samoa may nominate for
    appointment as a cadet at the Academy any individual who is - 
        (A) a citizen of the United States or a national of the United
      States; and
        (B) a resident of the State represented by such Senator if the
      individual is nominated by a Senator, a resident of the State in
      which the congressional district represented by such Member of
      the House of Representatives is located if the individual is
      nominated by a Member of the House of Representatives (or a
      resident of Guam, the Virgin Islands, the District of Columbia,
      the Commonwealth of Puerto Rico, or American Samoa if the
      individual is nominated by a Member of the House of
      Representatives representing such area), a resident of the area
      or installation described in paragraph (3)(A)(ii), or a son or
      daughter of the personnel described in such paragraph, if the
      individual is nominated by the Panama Canal Commission, or a
      resident of the Northern Mariana Islands if the individual is
      nominated by the Governor of the Northern Mariana Islands.

      (2)(A) The Secretary shall establish minimum requirements for the
    individuals nominated pursuant to paragraph (1) and shall establish
    a system of competition for the selection of individuals qualified
    for appointment as cadets at the Academy.
      (B) Such system of competition shall determine the relative merit
    of appointing each such individual to the Academy through the use
    of competitive examinations, an assessment of the academic
    background of the individual, and such other factors as are
    considered effective indicators of motivation and the probability
    of successful completion of training at the Academy.
      (3)(A) Qualified individuals nominated pursuant to paragraph (1)
    shall be selected each year for appointment as cadets at the
    Academy to fill positions allocated as follows:
        (i) Positions shall be allocated each year for individuals who
      are residents of each State and are nominated by the Members of
      the Congress from such State in proportion to the representation
      in Congress from that State.
        (ii) Two positions shall be allocated each year for individuals
      nominated by the Panama Canal Commission who are sons or
      daughters of residents of any area or installation located in the
      Republic of Panama which is made available to the United States
      pursuant to the Panama Canal Treaty of 1977, the agreements
      relating to and implementing that Treaty, signed September 7,
      1977, and the Agreement Between the United States of America and
      the Republic of Panama Concerning Air Traffic Control and Related
      Services, concluded January 8, 1979, and sons or daughters of
      personnel of the United States Government and the Panama Canal
      Commission residing in the Republic of Panama, nominated by the
      Panama Canal Commission.
        (iii) One position shall be allocated each year for an
      individual who is a resident of Guam and is nominated by the
      Delegate to the House of Representatives from Guam.
        (iv) One position shall be allocated each year for an
      individual who is a resident of the Virgin Islands and is
      nominated by the Delegate to the House of Representatives from
      the Virgin Islands.
        (v) One position shall be allocated each year for an individual
      who is a resident of the Northern Mariana Islands and is
      nominated by the Governor of the Northern Mariana Islands.
        (vi) One position shall be allocated each year for an
      individual who is a resident of American Samoa and is nominated
      by the Delegate to the House of Representatives from American
      Samoa.
        (vii) Four positions shall be allocated each year for
      individuals who are residents of the District of Columbia and are
      nominated by the Delegate to the House of Representatives from
      the District of Columbia.
        (viii) One position shall be allocated each year for an
      individual who is a resident of the Commonwealth of Puerto Rico
      and is nominated by the Resident Commissioner to the United
      States from Puerto Rico.

      (B) The Secretary shall make appointments of qualified
    individuals to fill the positions allocated pursuant to
    subparagraph (A) (from among the individuals nominated pursuant to
    paragraph (1)) in the order of merit determined pursuant to
    paragraph (2)(B) among residents of each State, Guam, the Virgin
    Islands, the Northern Mariana Islands, American Samoa, the District
    of Columbia, and the Commonwealth of Puerto Rico and among
    individuals nominated by the Panama Canal Commission.
      (C) If positions are not filled after the appointments are made
    pursuant to subparagraph (B), the Secretary shall make appointments
    of qualified individuals to fill such positions from among all
    individuals nominated pursuant to paragraph (1) in the order of
    merit determined pursuant to paragraph (2)(B) among all such
    individuals.
      (D) In addition, the Secretary may each year appoint without
    competition as cadets at the Academy not more than 40 qualified
    individuals possessing qualities deemed to be of special value to
    the Academy. In making such appointments the Secretary shall
    attempt to achieve a national demographic balance at the Academy.
      (E) No preference shall be granted in selecting individuals for
    appointment as cadets at the Academy because one or more members of
    the immediate family of any such individual are alumni of the
    Academy.
      (F) Any citizen of the United States selected for appointment
    pursuant to this paragraph must agree to apply for midshipman
    status in the United States Navy Reserve (including the Merchant
    Marine Reserve, United States Navy Reserve) before being appointed
    as a cadet at the Academy.
      (G) For purposes of this paragraph, the term "State" means the
    several States.
      (4)(A) In addition to paragraph (3), the Secretary may permit,
    upon designation by the Secretary of the Interior, individuals from
    the Trust Territory of the Pacific Islands to receive instruction
    at the Academy.
      (B) Not more than 4 individuals may receive instruction under
    this paragraph at any one time.
      (C) Any individual receiving instruction under the authority of
    this paragraph shall receive the same allowances and shall be
    subject to the same rules and regulations governing admission,
    attendance, discipline, resignation, discharge, dismissal, and
    graduation as cadets at the Academy appointed from the United
    States, subject to such exceptions as shall be jointly agreed upon
    by the Secretary and the Secretary of the Interior.
      (5)(A) In addition to paragraphs (3) and (4), the President may
    designate individuals from nations located in the Western
    Hemisphere other than the United States to receive instruction at
    the Academy.
      (B) Not more than 12 individuals may receive instruction under
    this paragraph at any one time, and not more than 2 individuals
    receiving instruction under this paragraph at any one time may be
    from the same nation.
      (C) Any individual receiving instruction under this subparagraph
    is entitled to the same allowances and shall be subject to the same
    rules and regulations governing admission, attendance, discipline,
    resignation, discharge, dismissal, and graduation as cadets at the
    Academy appointed from the United States.
      (6)(A) In addition to paragraphs (3), (4), and (5), the Secretary
    may permit, upon approval of the Secretary of State, individuals
    from nations other than the United States to receive instruction at
    the Academy.
      (B) Not more than 30 individuals may receive instruction under
    this paragraph at any one time.
      (C) The Secretary shall insure that each nation from which an
    individual comes to receive instruction under this paragraph shall
    reimburse the Secretary for the cost of such instructions
    (including the same allowances as received by cadets at the Academy
    appointed from the United States), as determined by the Secretary.
      (D) Any individual receiving instruction at the Academy under
    this paragraph shall be subject to the same rules and regulations
    governing admission, attendance, discipline, resignation,
    discharge, dismissal, and graduation as cadets at the Academy
    appointed from the United States.
      (7)(A) The Secretary may permit, upon approval of the Secretary
    of State, additional individuals from the Republic of Panama to
    receive instruction at the Academy, in addition to those
    individuals appointed under paragraphs (3), (4), (5), and (6) of
    this subsection.
      (B) The Secretary shall be reimbursed for the cost of that
    instruction (including the same allowances as received by cadets at
    the Academy appointed from the United States) as determined by the
    Secretary.
      (C) An individual receiving instructions at the Academy under
    this paragraph shall be subject to the same rules and regulations
    governing admission, attendance, discipline, resignation,
    discharge, dismissal, and graduation as cadets at the Academy
    appointed from the United States.
      (8) An individual appointed as a cadet under paragraph (3), or
    receiving instruction under paragraph (4), (5), (6), or (7) of this
    subsection is not entitled to hold a license authorizing service on
    a merchant marine vessel of the United States solely by reason of
    graduation from the Academy.
    (c) Appointment of cadet as midshipman in United States Navy
      Reserve; rights and privileges
      (1) Any citizen of the United States who is appointed as a cadet
    at the Academy shall be appointed by the Secretary of the Navy as a
    midshipman in the United States Navy Reserve (including the
    Merchant Marine Reserve, United States Navy Reserve).
      (2) The Secretary of the Navy shall provide for cadets of the
    Academy who are midshipmen in the United States Navy Reserve to be
    issued an identification card (referred to as a "military ID card")
    and to be entitled to all rights and privileges in accordance with
    the same eligibility criteria as apply to other members of the
    Ready Reserve of the reserve components of the Armed Forces.
      (3) The Secretary of the Navy shall carry out paragraphs (1) and
    (2) in coordination with the Secretary.
    (d) Uniforms, textbooks, and transportation allowances
      The Secretary shall provide to any cadet at the Academy all
    required uniforms and textbooks and allowances for transportation
    (including reimbursement of traveling expenses) while traveling
    under orders as a cadet of the Academy.
    (e) Commitment agreements
      (1) Each individual appointed as a cadet at the Academy after the
    date occurring 6 months after October 1, 1981, who is a citizen of
    the United States, shall as a condition of appointment to the
    Academy sign an agreement committing such individual - 
        (A) to complete the course of instruction at the Academy;
        (B) to fulfill the requirements for a license as an officer in
      the merchant marine of the United States on or before the date of
      graduation from the Academy of such individual;
        (C) to maintain a valid license as an officer in the merchant
      marine of the United States for at least 6 years following the
      date of graduation from the Academy of such individual,
      accompanied by the appropriate national and international
      endorsements and certification as required by the United States
      Coast Guard for service aboard vessels on domestic and
      international voyages;
        (D) to apply for an appointment as, to accept if tendered an
      appointment as, and to serve as a commissioned officer in the
      United States Navy Reserve (including the Merchant Marine
      Reserve, United States Navy Reserve), the United States Coast
      Guard Reserve, or any other Reserve unit of an armed force of the
      United States, for at least 6 years following the date of
      graduation from the Academy of such individual;
        (E) to serve the foreign and domestic commerce and the national
      defense of the United States for at least 5 years following the
      date of graduation from the Academy - 
          (i) as a merchant marine officer serving on vessels
        documented under the laws of the United States or on vessels
        owned and operated by the United States or by any State or
        territory of the United States;
          (ii) as an employee in a United States maritime-related
        industry, profession, or marine science (as determined by the
        Secretary), if the Secretary determines that service under
        clause (i) is not available to such individual;
          (iii) as a commissioned officer on active duty in an armed
        force of the United States, as a commissioned officer in the
        National Oceanic and Atmospheric Administration, or other
        maritime-related employment with the Federal Government which
        serves the national security interests of the United States, as
        determined by the Secretary; or
          (iv) by combining the services specified in clauses (i),
        (ii), and (iii); and

        (F) to report to the Secretary on the compliance by the
      individual to this paragraph.

      (2)(A) If the Secretary determines that any individual who has
    attended the Academy for not less than 2 years has failed to
    fulfill the part of the agreement required by paragraph (1)(A),
    such individual may be ordered by the Secretary of Defense to
    active duty in one of the armed forces of the United States to
    serve for a period of time not to exceed 2 years. In cases of
    hardship as determined by the Secretary, the Secretary may waive
    this provision in whole or in part.
      (B) If the Secretary of Defense is unable or unwilling to order
    an individual to active duty under subparagraph (A), or if the
    Secretary of Transportation determines that reimbursement of the
    cost of education provided would better serve the interests of the
    United States, the Secretary may recover from the individual the
    cost of education provided by the Federal Government.
      (3)(A) If the Secretary determines that an individual has failed
    to fulfill any part of the agreement required by paragraph (1), as
    described in paragraph (1)(B), (C), (D), (E), or (F), such
    individual may be ordered to active duty to serve a period of time
    not less than 3 years and not more than the unexpired portion, as
    determined by the Secretary, of the service required by paragraph
    (1)(E). The Secretary, in consultation with the Secretary of
    Defense, shall determine in which service the individual shall be
    ordered to active duty to serve such period of time. In cases of
    hardship, as determined by the Secretary, the Secretary may waive
    this provision in whole or in part.
      (B) If the Secretary of Defense is unable or unwilling to order
    an individual to active duty under subparagraph (A), or if the
    Secretary of Transportation determines that reimbursement of the
    cost of education provided would better serve the interests of the
    United States, the Secretary may recover from the individual the
    cost of education provided and may reduce the amount to be
    recovered from such individual to reflect partial performance of
    service obligations and such other factors as the Secretary
    determines merit such a reduction.
      (4) To aid in the recovery of the cost of education provided by
    the Federal Government pursuant to a commitment agreement under
    this section, the Secretary may request the Attorney General to
    begin court proceedings, and the Secretary may make use of the
    Federal debt collection procedures in chapter 176 of title 28 or
    other applicable administrative remedies.
      (5) The Secretary may defer the service commitment of any
    individual pursuant to subparagraph (E) of paragraph (1) (as
    specified in the agreement required by such paragraph) for a period
    of not more than 2 years if such individual is engaged in a
    graduate course of study approved by the Secretary, except that any
    deferment of service as a commissioned officer pursuant to
    paragraph (1)(E) must be approved by the Secretary of the military
    department (including the Secretary of Commerce with respect to the
    National Oceanic and Atmospheric Administration) which has
    jurisdiction over such service.
    (f) Places of training
      The Secretary may provide for the training of cadets at the
    Academy - 
        (1) on vessels owned or subsidized by the United States;
        (2) on other vessels documented under the laws of the United
      States if the owner of any such vessel cooperates in such use;
      and
        (3) in shipyards or plants and with any industrial or
      educational organizations.
    (g) Degrees awarded
      (1) Bachelor's degree
        The Superintendent of the Academy may confer the degree of
      bachelor of science upon any individual who has met the
      conditions prescribed by the Secretary and who, if a citizen of
      the United States, has passed the examination for a merchant
      marine officer's license. No individual may be denied a degree
      under this subsection because the individual is not permitted to
      take such examination solely because of physical
      disqualification.
      (2) Master's degree
        The Superintendent of the Academy may confer a master's degree
      upon any individual who has met the conditions prescribed by the
      Secretary. Any master's degree program may be funded through non-
      appropriated funds. In order to maintain the appropriate
      academic standards, the program shall be accredited by the
      appropriate accreditation body. The Secretary may make
      regulations necessary to administer such a program.
    (h) Board of Visitors
      (1) A Board of Visitors to the Academy shall be established, for
    a term of two years commencing at the beginning of each Congress,
    to visit the Academy annually on a date determined by the Secretary
    and to make recommendations on the operation of the Academy.
      (2) The Board shall be composed of - 
        (A) 2 Senators appointed by the chairman of the Commerce,
      Science, and Transportation Committee of the Senate;
        (B) 3 Members of the House of Representatives appointed by the
      chairman of the Merchant Marine and Fisheries Committee of the
      House of Representatives;
        (C) 1 Senator appointed by the Vice President;
        (D) 2 Members of the House of Representatives appointed by the
      Speaker of the House of Representatives; and
        (E) the chairman of the Commerce, Science, and Transportation
      Committee of the Senate and the chairman of the Merchant Marine
      and Fisheries Committee of the House of Representatives, as ex
      officio members.

      (3) Whenever a member of the Board is unable to attend the annual
    meeting provided in paragraph (1), another individual may be
    appointed in the manner provided by paragraph (2) as a substitute
    for such member.
      (4) The chairmen of the Commerce, Science, and Transportation
    Committee of the Senate and the Merchant Marine and Fisheries
    Committee of the House of Representatives may designate staff
    members of such committees to serve without reimbursement as staff
    for the Board.
      (5) While away from their homes or regular places of business in
    the performance of services for the Board, members of the Board and
    any staff members designated under paragraph (4) shall be allowed
    travel expenses, including per diem in lieu of subsistence, in the
    same manner as persons employed intermittently in the Government
    service are allowed expenses under section 5703 of title 5.
    (i) Advisory Board
      (1) An Advisory Board to the Academy shall be established to
    visit the Academy at least once during each academic year, for the
    purpose of examining the course of instruction and management of
    the Academy and advising the Maritime Administrator and the
    Superintendent of the Academy.
      (2) The Advisory Board shall be composed of not more than 7
    persons of distinction in education and other fields relating to
    the Academy who shall be appointed by the Secretary for terms not
    to exceed 3 years and may be reappointed.
      (3) The Secretary shall appoint a chairman from among the members
    of the Advisory Board.
      (4) While away from their homes or regular places of business in
    the performance of service for the Advisory Board, members of the
    Advisory Board shall be allowed travel expenses, including per diem
    in lieu of subsistence, in the same manner as persons employed
    intermittently in the Government service are allowed expenses under
    section 5703 of title 5.
      (5) The Federal Advisory Committee Act (5 U.S.C. App. 1 et seq.)
    shall not apply to the Advisory Board established pursuant to this
    subsection.
    (j) Limitation on charges and fees for attendance
      (1) Except as provided in paragraph (2), no charge or fee for
    tuition, room, or board for attendance at the Academy may be
    imposed unless the charge or fee is specifically authorized by a
    law enacted after October 5, 1994.
      (2) The prohibition specified in paragraph (1) does not apply
    with respect to any item or service provided to cadets for which a
    charge or fee is imposed as of October 5, 1994. The Secretary of
    Transportation shall notify Congress of any change made by the
    Academy in the amount of a charge or fee authorized under this
    paragraph.

-SOURCE-
    (June 29, 1936, ch. 858, title XIII, Sec. 1303, as added Pub. L. 96-
    453, Sec. 2, Oct. 15, 1980, 94 Stat. 1998; amended Pub. L. 97-31,
    Sec. 12(144), Aug. 6, 1981, 95 Stat. 166; Pub. L. 97-35, title XVI,
    Sec. 1607, Aug. 13, 1981, 95 Stat. 752; Pub. L. 99-368, Sec. 5,
    Aug. 1, 1986, 100 Stat. 776; Pub. L. 101-595, title VII, Secs. 703,
    707(a), 708, Nov. 16, 1990, 104 Stat. 2994, 2995; Pub. L. 105-261,
    div. A, title V, Sec. 568, Oct. 17, 1998, 112 Stat. 2031; Pub. L.
    106-65, div. A, title X, Sec. 1066(b)(5), Oct. 5, 1999, 113 Stat.
    772; Pub. L. 108-136, div. C, title XXXV, Sec. 3515(b), (c), Nov.
    24, 2003, 117 Stat. 1792, 1794; Pub. L. 108-375, div. A, title V,
    Sec. 545(e), Oct. 28, 2004, 118 Stat. 1909; Pub. L. 109-163, div.
    A, title V, Sec. 515(g)(2), Jan. 6, 2006, 119 Stat. 3236.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Federal Advisory Committee Act, referred to in subsec.
    (i)(5), is Pub. L. 92-463, Oct. 6, 1972, 86 Stat. 770, as amended,
    which is set out in the Appendix to Title 5, Government
    Organization and Employees.

-MISC1-
                                AMENDMENTS                            
      2006 - Subsec. (b)(3)(F). Pub. L. 109-163, Sec. 515(g)(2)(A),
    substituted "Navy Reserve" for "Naval Reserve" in two places.
      Subsec. (c). Pub. L. 109-163, Sec. 515(g)(2)(B), which directed
    substitution of "Navy Reserve" for "Naval Reserve" in subsec. (c),
    could not be executed because "Naval Reserve" did not appear.
      Pub. L. 109-163, Sec. 515(g)(2)(A), substituted "Navy Reserve"
    for "Naval Reserve" in two places in par. (1) and in par. (2).
      Subsec. (e)(1)(D). Pub. L. 109-163, Sec. 515(g)(2)(A),
    substituted "Navy Reserve" for "Naval Reserve" in two places.
      2004 - Subsec. (j). Pub. L. 108-375 added subsec. (j).
      2003 - Subsec. (e)(1)(A). Pub. L. 108-136, Sec. 3515(b)(1), which
    directed that subpar. (A) be amended by striking out "Academy,
    unless the individual is separated from the", was executed by
    striking out "Academy, unless the individual is separated by the"
    after "instruction at the", to reflect the probable intent of
    Congress.
      Subsec. (e)(1)(C). Pub. L. 108-136, Sec. 3515(b)(2), added
    subpar. (C) and struck out former subpar. (C) which read as
    follows: "to maintain a license as an officer in the merchant
    marine of the United States for at least 6 years following the date
    of graduation from the Academy of such individual;".
      Subsec. (e)(1)(E)(iii). Pub. L. 108-136, Sec. 3515(b)(3), added
    cl. (iii) and struck out former cl. (iii) which read as follows:
    "as a commissioned officer on active duty in an armed force of the
    United States or in the National Oceanic and Atmospheric
    Administration; or".
      Subsec. (e)(2). Pub. L. 108-136, Sec. 3515(b)(4), added par. (2)
    and struck out former par. (2) which read as follows: "If the
    Secretary determines that any individual who has attended the
    Academy for not less than 2 years has failed to fulfill the part of
    the agreement (required by paragraph (1)) described in paragraph
    (1)(A), such individual may be ordered by the Secretary of the Navy
    to active duty in the United States Navy to serve for a period of
    time not to exceed 2 years. In cases of hardship as determined by
    the Secretary, the Secretary may waive this paragraph."
      Subsec. (e)(3). Pub. L. 108-136, Sec. 3515(b)(5), added par. (3)
    and struck out former par. (3) which read as follows:
      "(A) If the Secretary determines that any individual has failed
    to fulfill any part of the agreement (required by paragraph (1))
    described in subparagraphs (B), (C), (D), (E), or (F) of paragraph
    (1), such individual may be ordered to active duty to serve a
    period of time not less than 3 years and not more than the
    unexpired portion (as determined by the Secretary) of the service
    required by subparagraph (E) of such paragraph. The Secretary, in
    consultation with the Secretary of Defense, shall determine in
    which service the individual shall be ordered to active duty to
    serve such period of time. In cases of hardship as determined by
    the Secretary, the Secretary may waive this paragraph.
      "(B) If the Secretary of Defense is unable or unwilling to order
    an individual to active duty under subparagraph (A), the Secretary
    of Transportation - 
        "(i) may recover from the individual the cost of education
      provided by the Federal Government; and
        "(ii) shall request the Attorney General to begin court
      proceedings to recover the costs of education if the Secretary
      decides to seek recovery under clause (i)."
      Subsec. (e)(4), (5). Pub. L. 108-136, Sec. 3515(b)(6), added par.
    (4) and redesignated former par. (4) as (5).
      Subsec. (g). Pub. L. 108-136, Sec. 3515(c), amended subsec. (g)
    generally. Prior to amendment, subsec. (g) read as follows: "The
    Superintendent of the Academy may confer the degree of bachelor of
    science upon any individual who has met the conditions prescribed
    by the Secretary and who, if a citizen of the United States, has
    passed the examination for a merchant marine officer's license. No
    individual may be denied a degree under this subsection because the
    individual is not permitted to take such examination solely because
    of physical disqualification."
      1999 - Subsec. (c). Pub. L. 106-65 made technical correction to
    Pub. L. 105-261, Sec. 568. See 1998 Amendment note below.
      1998 - Subsec. (c). Pub. L. 105-261, as amended by Pub. L. 106-
    65, designated existing provisions as par. (1), substituted
    "shall" for "may", and added pars. (2) and (3).
      1990 - Subsec. (b)(1). Pub. L. 101-595, Sec. 708(1), in
    introductory provisions, substituted "Delegate from American Samoa"
    for "Governor of American Samoa (until a delegate to the House of
    Representatives from American Samoa takes office)" and "any
    individual who is - " for "any individual who is" and, in subpar.
    (B), inserted "or" after "Canal Commission," and struck out before
    period at end ", or a resident of American Samoa if the individual
    is nominated by the Governor of American Samoa".
      Subsec. (b)(3)(A)(vi). Pub. L. 101-595, Sec. 708(2), substituted
    "Delegate to the House of Representatives from American Samoa" for
    "Governor of American Samoa (until a delegate to the House of
    Representatives from American Samoa takes office)".
      Subsec. (b)(7)(A). Pub. L. 101-595, Sec. 708(3)(A), struck out
    "annually" after "Secretary may", "until September 30, 1995,"
    before "upon approval", and "up to six" before "additional".
      Subsec. (b)(7)(B). Pub. L. 101-595, Sec. 708(3)(B), which
    directed the substitution of "The Secretary shall be reimbursed"
    for "the Secretary shall insure that the Republic of Panama
    reimburse the Secretary", was executed by making the substitution
    for "The Secretary shall insure that the Republic of Panama
    reimburse the Secretary" to reflect the probable intent of
    Congress.
      Subsec. (e)(3). Pub. L. 101-595, Sec. 707(a), designated existing
    provisions as subpar. (A) and added subpar. (B).
      Subsec. (h)(1). Pub. L. 101-595, Sec. 703, amended par. (1)
    generally. Prior to amendment, par. (1) read as follows: "A Board
    of Visitors to the Academy shall be established to visit the
    Academy annually on a date determined by the Secretary and to make
    recommendations on the operation of the Academy."
      1986 - Subsec. (b)(7), (8). Pub. L. 99-368 added pars. (7) and
    (8) and struck out former par. (7) which provided that any
    individual appointed as a cadet to the Academy under par. (3), or
    receiving instruction at the Academy under par. (4), (5), or (6),
    was not entitled to hold any license authorizing service on any
    merchant marine vessel of the United States solely by reason of
    graduation from the Academy.
      1981 - Subsec. (e)(3). Pub. L. 97-31, Sec. 12(144)(A), struck out
    "and the Secretary of Transportation" after "Secretary of Defense".
      Subsec. (e)(4). Pub. L. 97-31, Sec. 12(144)(B), struck out "the
    Secretary of the department in which the United States Coast Guard
    is operating with respect to the United States Coast Guard and"
    before "the Secretary of Commerce".
      Subsec. (h)(2)(D). Pub. L. 97-35 increased the membership on the
    Board from 1 to 2 Members of the House of Representatives.
      Subsec. (i)(1). Pub. L. 97-31, Sec. 12(144)(C), substituted
    "Maritime Administrator" for "Assistant Secretary of Commerce for
    Maritime Affairs".

                     EFFECTIVE DATE OF 1999 AMENDMENT                 
      Pub. L. 106-65, div. A, title X, Sec. 1066(b), Oct. 5, 1999, 113
    Stat. 772, provided that the amendment made by section 1066(b) is
    effective Oct. 17, 1998, and as if included in the Strom Thurmond
    National Defense Authorization Act for Fiscal Year 1999, Pub. L.
    105-261, as enacted.

                     EFFECTIVE DATE OF 1990 AMENDMENT                 
      Section 707(b) of Pub. L. 101-595 provided that: "The amendments
    made by subsection (a) [amending this section] shall apply to
    individuals who sign agreements after the date of enactment of this
    Act [Nov. 16, 1990] under section 1303(e) of the Merchant Marine
    Act, 1936 (46 App. U.S.C. 1295b(e))."

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      For transfer of authorities, functions, personnel, and assets of
    the Coast Guard, including the authorities and functions of the
    Secretary of Transportation relating thereto, to the Department of
    Homeland Security, and for treatment of related references, see
    sections 468(b), 551(d), 552(d), and 557 of Title 6, Domestic
    Security, and the Department of Homeland Security Reorganization
    Plan of November 25, 2002, as modified, set out as a note under
    section 542 of Title 6.

       ABOLITION OF HOUSE COMMITTEE ON MERCHANT MARINE AND FISHERIES   
      Committee on Merchant Marine and Fisheries of House of
    Representatives abolished and its jurisdiction transferred by House
    Resolution No. 6, One Hundred Fourth Congress, Jan. 4, 1995.
    Committee on Merchant Marine and Fisheries of House of
    Representatives treated as referring to Committee on National
    Security [now Committee on Armed Services] of House of
    Representatives, in case of provisions relating to interoceanic
    canals, Merchant Marine Academy and State Maritime Academies, or
    national security aspects of merchant marine, by section 1(b)(3) of
    Pub. L. 104-14, set out as a note preceding section 21 of Title 2,
    The Congress.

           TERMINATION OF TRUST TERRITORY OF THE PACIFIC ISLANDS       
      For termination of Trust Territory of the Pacific Islands, see
    note set out preceding section 1681 of Title 48, Territories and
    Insular Possessions.

-MISC2-
     DEGREES FOR PERSONS WHO GRADUATED BEFORE ACCREDITING OF MERCHANT
                              MARINE ACADEMY
      Act Aug. 10, 1956, ch. 1041, Sec. 35, 70A Stat. 634, provided in
    part that, under conditions prescribed by the Secretary of
    Commerce, the Superintendent of the United States Merchant Marine
    Academy may confer the degree of bachelor of science upon living
    graduates of the Academy who were graduated before the date of
    accrediting of the Academy and who have met the requirements of the
    Academy for that degree.

-End-

-CITE-
    46 USC APPENDIX Sec. 1295c                                  01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER XIII - MARITIME EDUCATION AND TRAINING

-HEAD-
    Sec. 1295c. State maritime academies

-STATUTE-
    (a) Cooperation and assistance
      The Secretary shall cooperate with and assist any State maritime
    academy in providing instruction to individuals to prepare them for
    service in the merchant marine of the United States.
    (b) Regional maritime academies
      The Governors of all States or territories of the United States,
    or both, cooperating to sponsor a regional maritime academy shall
    designate in writing one State or territory of the United States,
    from among the sponsoring States or territories, or both, to
    conduct the affairs of such regional maritime academy. Any regional
    maritime academy shall be eligible for assistance from the Federal
    Government on the same basis as any State maritime academy
    sponsored by a single State or territory of the United States.
    (c) Training vessels
      (1)(A) The Secretary may furnish for training purposes any
    suitable vessel under the control of the Secretary or provided
    under subparagraph (B), or construct and furnish a suitable vessel
    if such a vessel is not available, to any State maritime academy
    meeting the requirements of subsection (f)(1) of this section. Any
    such vessel - 
        (i) shall be repaired, reconditioned, and equipped (including
      supplying all apparel, charts, books, and instruments of
      navigation) as necessary for use as a training ship;
        (ii) shall be furnished to such State maritime academy only
      after application for such vessel is made in writing by the
      Governor of the State or territory sponsoring such State maritime
      academy or, with respect to a regional maritime academy the
      Governor of the State or territory designated pursuant to
      subsection (b) of this section;
        (iii) shall be furnished to such State maritime academy only if
      a suitable port for the safe mooring of such vessel is available
      while it is being used by such academy;
        (iv) shall be maintained in good repair by the Secretary; and
        (v) shall remain the property of the United States.

      (B) Any department or agency of the United States may provide to
    the Secretary to be furnished to any State maritime academy any
    vessel (including equipment) which is suitable for the purposes of
    this paragraph and which can be provided without detriment to the
    service to which such vessel is assigned.
      (2)(A) The Secretary shall, subject to the availability of
    appropriations, pay to each State maritime academy the amount of
    the costs of all fuel consumed by any vessel furnished under
    paragraph (1) while such vessel is being used for training purposes
    by such academy.
      (B) The amount of the payment to a State maritime academy under
    this paragraph shall not exceed - 
        (i) $100,000 for fiscal year 2006;
        (ii) $200,000 for fiscal year 2007; and
        (iii) $300,000 for fiscal year 2008 and each fiscal year
      thereafter.

      (3)(A) The Secretary may provide for the training of individuals
    attending a State maritime academy - 
        (i) on vessels owned or subsidized by the United States;
        (ii) on other vessels documented under the laws of the United
      States if the owner of any such vessel cooperates in such use;
      and
        (iii) in shipyards or plants and with any industrial or
      educational organizations.

      (B) While traveling under orders for purposes of receiving
    training under this paragraph, any individual who is attending a
    State maritime academy shall receive from the Secretary allowances
    for transportation (including reimbursement of traveling expenses)
    in accordance with any regulations promulgated by the Secretary.
    (d) Annual payments
      (1)(A) The Secretary may enter into an agreement, which shall be
    effective for not more than 4 years, with one State maritime
    academy (not including regional maritime academies) located in each
    State or territory of the United States which meets the
    requirements of subsection (f)(1) of this section, and with each
    regional maritime academy which meets the requirements of
    subsection (f)(1) of this section, to make annual payments to each
    such academy for the maintenance and support of such academy.
      (B) Subject to subparagraph (C), the annual payment to such State
    maritime academy shall be at least equal to the amount given to the
    academy for its maintenance and support by the State in which it is
    located, and to such regional maritime academy shall be at least
    equal to the amount given the academy by all States and territories
    cooperating to sponsor the academy.
      (C) The amount under subparagraph (B) may not be more than
    $25,000, except that the amount shall be - 
        (i) $100,000 to such State maritime academy if the academy
      meets the condition set forth in subsection (f)(2) of this
      section; or
        (ii) $300,000 for fiscal year 2006, $400,000 for fiscal year
      2007, and $500,000 for fiscal year 2008 and each fiscal year
      thereafter to such regional maritime academy if the academy meets
      the condition set forth in subsection (f)(2) of this section.

      (2) The Secretary shall provide to each State maritime academy
    guidance and assistance in developing courses on the operation and
    maintenance of new vessels, on equipment, and on innovations being
    introduced to the merchant marine of the United States.
    (e) Detailing of personnel
      Upon the request of the Governor of any State or territory, the
    President may detail, without reimbursement, any of the personnel
    of the United States Navy, the United States Coast Guard, or the
    United States Maritime Service to any State maritime academy to
    serve as superintendents, professors, lecturers, or instructors at
    such academy.
    (f) Conditions to receiving payments or use of vessels
      (1) As a condition to receiving any payment or the use of any
    vessel under this section, any State maritime academy shall - 
        (A) provide courses of instruction on navigation, marine
      engineering (including steam and diesel propulsion), the
      operation and maintenance of new vessels and equipment, and
      innovations being introduced to the merchant marine of the United
      States;
        (B) agree in writing to conform to such standards for courses,
      training facilities, admissions, and instruction as are
      established by the Secretary after consultation with the
      superintendents of the State maritime academies; and
        (C) agree in writing to require, as a condition for graduation,
      that each individual who is a citizen of the United States and
      who is attending the academy in a merchant marine officer
      preparation program shall pass the examination administered by
      the Coast Guard required for issuance of a license under section
      7101 of title 46.

      (2) As a condition to receiving an annual payment of any amount
    in excess of $25,000 under subsection (d) of this section, a State
    maritime academy shall agree to admit to such academy each year a
    number of individuals who meet the admission requirements of such
    academy and who are citizens of the United States residing in
    States and territories of the United States other than the States
    or territories, or both, supporting such academy. The Secretary
    shall determine the number of individuals under this paragraph for
    each State maritime academy so that such number does not exceed one-
    third of the total number of individuals attending such academy at
    any time.
    (g) Student incentive payment agreements
      (1) The Secretary may enter into an agreement, which shall be
    effective for not more than 4 academic years, with any individual,
    who is a citizen of the United States and is attending a State
    maritime academy which entered into an agreement with the Secretary
    under subsection (d)(1) of this section, to make student incentive
    payments to such individual, which payments shall be in amounts
    equaling $4,000 for each academic year and which payments shall be -
     
        (A) allocated among the various State maritime academies in a
      fair and equitable manner;
        (B) used to assist the individual in paying the cost of
      uniforms, books, and subsistence; and
        (C) paid by the Secretary as the Secretary shall prescribe
      while the individual is attending the academy.

      (2) Each agreement entered into under paragraph (1) shall require
    the individual to accept midshipman and enlisted reserve status in
    the United States Navy Reserve (including the Merchant Marine
    Reserve, United States Navy Reserve) before receiving any student
    incentive payments under this subsection.
      (3) Each agreement entered into under paragraph (1) shall
    obligate the individual receiving student incentive payments under
    the agreement - 
        (A) to complete the course of instruction at the State maritime
      academy which the individual is attending;
        (B) to take the examination for a license as an officer in the
      merchant marine of the United States on or before the date of
      graduation from such State maritime academy of such individual
      and to fulfill the requirements for such license not later than 3
      months after such graduation date;
        (C) to maintain a valid license as an officer in the merchant
      marine of the United States for at least 6 years following the
      date of graduation from such State maritime academy of such
      individual, accompanied by the appropriate national and
      international endorsements and certification as required by the
      United States Coast Guard for service aboard vessels on domestic
      and international voyages;
        (D) to accept if tendered an appointment as, and to serve as a
      commissioned officer in the United States Navy Reserve (including
      the Merchant Marine Reserve, United States Navy Reserve), the
      United States Coast Guard Reserve, or any other reserve unit of
      an armed force of the United States, for at least 6 years
      following the date of graduation from such State maritime academy
      of such individual;
        (E) to serve the foreign and domestic commerce and the national
      defense of the United States for at least 3 years following the
      date of graduation from the Academy - 
          (i) as a merchant marine officer serving on vessels
        documented under the laws of the United States or on vessels
        owned and operated by the United States or by any State or
        territory of the United States;
          (ii) as an employee in a United States maritime-related
        industry, profession, or marine science (as determined by the
        Secretary), if the Secretary determines that service under
        clause (i) is not available to such individual;
          (iii) as a commissioned officer on active duty in an armed
        force of the United States, as a commissioned officer in the
        National Oceanic and Atmospheric Administration, or in other
        maritime-related employment with the Federal Government which
        serves the national security interests of the United States, as
        determined by the Secretary; or
          (iv) by combining the services specified in clauses (i),
        (ii), and (iii); and

        (F) to report to the Secretary on the compliance by the
      individual to this paragraph.

      (4)(A) If the Secretary determines that an individual who has
    accepted the payment described in paragraph (1) for a minimum of 2
    academic years has failed to fulfill the part of the agreement
    required by paragraph (1) and described in paragraph (3)(A), such
    individual may be ordered by the Secretary of Defense to active
    duty in the Armed Forces of the United States to serve for a period
    of time not to exceed 2 years. In cases of hardship, as determined
    by the Secretary, the Secretary may waive this provision in whole
    or in part.
      (B) If the Secretary of Defense is unable or unwilling to order
    an individual to active duty under subparagraph (A), or if the
    Secretary of Transportation determines that reimbursement of the
    cost of education provided would better serve the interests of the
    United States, the Secretary - 
        (i) subject to clause (ii), may recover from the individual the
      amount of student incentive payments, plus interest and attorneys
      fees; and
        (ii) may reduce the amount to be recovered from such individual
      to reflect partial performance of service obligations and such
      other factors as the Secretary determines merit such reduction.

      (5)(A) If the Secretary determines that an individual has failed
    to fulfill any part of the agreement required by paragraph (1), as
    described in paragraph (3)(B), (C), (D), (E), or (F), such
    individual may be ordered to active duty to serve a period of time
    not less than 2 years and not more than the unexpired portion, as
    determined by the Secretary, of the service required by paragraph
    (3)(E). The Secretary, in consultation with the Secretary of
    Defense, shall determine in which service the individual shall be
    ordered to active duty to serve such period of time. In cases of
    hardship, as determined by the Secretary, the Secretary may waive
    this provision in whole or in part.
      (B) If the Secretary of Defense is unable or unwilling to order
    an individual to active duty under subparagraph (A), or if the
    Secretary of Transportation determines that reimbursement of the
    cost of education provided would better serve the interests of the
    United States, the Secretary - 
        (i) subject to clause (ii), may recover from the individual the
      amount of student incentive payments, plus interest and attorneys
      fees; and
        (ii) may reduce the amount to be recovered from such individual
      to reflect partial performance of service obligations and such
      other factors as the Secretary determines merit such reduction.

      (6) To aid in the recovery of student incentive payments plus
    interest and attorneys fees the Secretary may request the Attorney
    General to begin court proceedings, and the Secretary may make use
    of the Federal debt collection procedures in chapter 176 of title
    28 and other applicable administrative remedies.
      (7) The Secretary may defer the service commitment of any
    individual pursuant to subparagraph (E) of paragraph (3) (as
    specified in the agreement required by such paragraph) for a period
    of not more than 2 years if such individual is engaged in a
    graduate course of study approved by the Secretary, except that any
    deferment of service as a commissioned officer pursuant to
    subparagraph (E) of such paragraph must be approved by the
    Secretary of the military department (including the Secretary of
    Commerce with respect to the National Oceanic and Atmospheric
    Administration) which has jurisdiction over such service.
      (8) This subsection shall apply only to individuals first
    entering a State maritime academy after the date occurring 6 months
    after October 1, 1981.
    (h) Appointment of cadet as midshipman in United States Navy
      Reserve
      Any citizen of the United States attending a State maritime
    academy may be appointed by the Secretary of the Navy as a
    midshipman in the United States Navy Reserve (including the
    Merchant Marine Reserve, United States Navy Reserve).

-SOURCE-
    (June 29, 1936, ch. 858, title XIII, Sec. 1304, as added Pub. L. 96-
    453, Sec. 2, Oct. 15, 1980, 94 Stat. 2003; amended Pub. L. 97-31,
    Sec. 12(145), Aug. 6, 1981, 95 Stat. 166; Pub. L. 101-115, Secs.
    2(a)-(d), 3(a), 5, Oct. 13, 1989, 103 Stat. 691-693; Pub. L. 102-
    587, title VI, Sec. 6201(a)(1), (b), (c), Nov. 4, 1992, 106 Stat.
    5093; Pub. L. 108-136, div. C, title XXXV, Sec. 3515(d), Nov. 24,
    2003, 117 Stat. 1794; Pub. L. 109-163, div. A, title V, Sec.
    515(g)(2), div. C, title XXXV, Sec. 3502, Jan. 6, 2006, 119 Stat.
    3236, 3547.)

-MISC1-
                                AMENDMENTS                            
      2006 - Subsec. (c)(2). Pub. L. 109-163, Sec. 3502(b), designated
    existing provisions as subpar. (A), substituted "The Secretary
    shall, subject to the availability of appropriations, pay to each
    State maritime academy" for "The Secretary may pay to any State
    maritime academy", and added subpar. (B).
      Subsec. (d)(1)(C)(ii). Pub. L. 109-163, Sec. 3502(a), substituted
    "$300,000 for fiscal year 2006, $400,000 for fiscal year 2007, and
    $500,000 for fiscal year 2008 and each fiscal year thereafter" for
    "$200,000".
      Subsec. (g)(2), (3)(D). Pub. L. 109-163, Sec. 515(g)(2)(A),
    substituted "Navy Reserve" for "Naval Reserve" in two places.
      Subsec. (h). Pub. L. 109-163, Sec. 515(g)(2)(B), which directed
    substitution of "Navy Reserve" for "Naval Reserve" in subsec. (h),
    could not be executed because "Naval Reserve" did not appear.
      Pub. L. 109-163, Sec. 515(g)(2)(A), substituted "Navy Reserve"
    for "Naval Reserve" in two places in text.
      2003 - Subsec. (g)(1). Pub. L. 108-136, Sec. 3515(d)(1),
    substituted "$4,000" for "$3,000".
      Subsec. (g)(3)(A). Pub. L. 108-136, Sec. 3515(d)(2), substituted
    "attending;" for "attending, unless the individual is separated by
    such academy;".
      Subsec. (g)(3)(C). Pub. L. 108-136, Sec. 3515(d)(3), added
    subpar. (C) and struck out former subpar. (C) which read as
    follows: "to maintain a license as an officer in the merchant
    marine of the United States for at least 6 years following the date
    of graduation from such State maritime academy of such
    individual;".
      Subsec. (g)(3)(E)(iii). Pub. L. 108-136, Sec. 3515(d)(4), added
    cl. (iii) and struck out former cl. (iii) which read as follows:
    "as a commissioned officer on active duty in an armed force of the
    United States or in the National Oceanic and Atmospheric
    Administration; or".
      Subsec. (g)(4). Pub. L. 108-136, Sec. 3515(d)(5), added par. (4)
    and struck out former par. (4) which read as follows: "If the
    Secretary determines that any individual who has accepted the
    payment described in paragraph (1) has failed to fulfill the part
    of the agreement (required by paragraph (1)) described in paragraph
    (3)(A), such individual may be ordered by the Secretary of the Navy
    to active duty in the United States Navy to serve for a period of
    time not to exceed 2 years. In cases of hardship as determined by
    the Secretary, the Secretary may waive this paragraph."
      Subsec. (g)(5). Pub. L. 108-136, Sec. 3515(d)(6), added par. (5)
    and struck out former par. (5) which read as follows: "If the
    Secretary determines that any individual has failed to fulfill any
    part of the agreement (required by paragraph (1)) described in
    subparagraphs (B), (C), (D), (E), or (F) of paragraph (3), such
    individual may be ordered to active duty to serve a period of time
    not less than 2 years and not more than the unexpired portion (as
    determined by the Secretary) of the service required by
    subparagraph (E) of such paragraph. The Secretary, in consultation
    with the Secretary of Defense, shall determine in which service the
    individual shall be ordered to active duty to serve such period of
    time. In cases of hardship as determined by the Secretary, the
    Secretary may waive this paragraph."
      Subsec. (g)(6) to (8). Pub. L. 108-136, Sec. 3515(d)(7), added
    par. (6) and redesignated former pars. (6) and (7) as (7) and (8),
    respectively.
      1992 - Subsec. (g)(1). Pub. L. 102-587, Sec. 6201(a)(1),
    substituted "$3,000" for "$1,200".
      Subsec. (g)(1)(B) to (D). Pub. L. 102-587, Sec. 6201(b), inserted
    "and" at end of subpar. (B), redesignated subpar. (D) as (C) and
    struck out ", for the academic years after those years specified in
    subparagraph (C)," after "paid by the Secretary", and struck out
    former subpar. (C) which read as follows: "paid by the Secretary to
    the individual for the first complete or partial academic year of
    attendance in a lump sum of $1,200 or in amounts prorated on the
    basis of actual attendance, and at a time during the second
    academic year when the individual enters into an agreement
    accepting midshipman and enlisted reserve status as required under
    paragraph (2); and".
      Subsec. (g)(4). Pub. L. 102-587, Sec. 6201(c), substituted
    "paragraph (1)" for "paragraph (1)(C) of this subsection" after
    "payment described in".
      1989 - Subsec. (d)(1). Pub. L. 101-115, Sec. 5, designated
    existing provisions as subpar. (A), struck out second sentence
    which read as follows: "The amount of each such annual payment
    shall be not less than the amount furnished to such academy for its
    maintenance and support by the State or territory in which such
    academy is located or, in the case of a regional maritime academy
    an amount equal to the amount furnished to such academy for its
    maintenance and support by all States or territories, or both,
    cooperating to support such academy, but shall not exceed $25,000,
    or $100,000 if such academy meets the requirements of subsection
    (f)(2) of this section.", and added subpars. (B) and (C).
      Subsec. (f)(1)(C). Pub. L. 101-115, Sec. 3(a), added subpar. (C).
      Subsec. (g)(1)(C), (D). Pub. L. 101-115, Sec. 2(a), added
    subpars. (C) and (D) and struck out former subpar. (C) which read
    as follows: "paid by the Secretary to the individual in such
    payments as the Secretary shall prescribe while such individual is
    attending such academy."
      Subsec. (g)(2). Pub. L. 101-115, Sec. 2(b), substituted "accept
    midshipman and enlisted reserve status" for "apply for midshipman
    status".
      Subsec. (g)(3)(D). Pub. L. 101-115, Sec. 2(c), struck out "to
    apply for an appointment as," before "to accept if tendered".
      Subsec. (g)(4). Pub. L. 101-115, Sec. 2(d), substituted "has
    accepted the payment described in paragraph (1)(C) of this
    subsection" for "has attended a State maritime academy for not less
    than 2 years".
      1981 - Subsec. (g). Pub. L. 97-31 in par. (5) struck out "and the
    Secretary of Transportation" after "Secretary of Defense", and in
    par. (6) struck out "the Secretary of the department in which the
    United States Coast Guard is operating with respect to the United
    States Coast Guard and" before "the Secretary of Commerce".

                     EFFECTIVE DATE OF 1992 AMENDMENT                 
      Section 6201(a)(2) of Pub. L. 102-587 provided that: "The
    amendment made by subsection (a) [amending this section] shall
    apply to payments under section 1304(g)(1) of the Merchant Marine
    Act, 1936 (46 App. U.S.C. 1295c(g)(1)) made with respect to
    academic years beginning after the date of the enactment of this
    Act [Nov. 4, 1992]."

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Pub. L. 101-595, title VII, Sec. 706, Nov. 16, 1990, 104 Stat.
    2995, provided that: "Section 3 of the Act of October 13, 1989
    (Public Law 101-115; 103 Stat. 692) [adding subsec. (f)(1)(C) of
    this section and enacting provisions set out below], shall not be
    effective prior to October 1, 1994."
      Section 2(e) of Pub. L. 101-115 provided that: "The amendments
    made by this section [amending this section] apply to individuals
    who commence attendance after December 31, 1989, at a State
    maritime academy in accordance with section 1304 of the Merchant
    Marine Act, 1936 (46 App. U.S.C. 1295c)."
      Section 3(b) of Pub. L. 101-115 provided that: "The requirement
    set forth in subsection (f)(1)(C) of section 1304 of the Merchant
    Marine Act, 1936 [46 App. U.S.C. 1295c(f)(1)(C)], as added by
    subsection (a) of this section, shall be a condition to any payment
    or use of any vessel received by a State maritime academy under
    such section 1304 after December 31, 1989."

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      For transfer of authorities, functions, personnel, and assets of
    the Coast Guard, including the authorities and functions of the
    Secretary of Transportation relating thereto, to the Department of
    Homeland Security, and for treatment of related references, see
    sections 468(b), 551(d), 552(d), and 557 of Title 6, Domestic
    Security, and the Department of Homeland Security Reorganization
    Plan of November 25, 2002, as modified, set out as a note under
    section 542 of Title 6.

-MISC2-
    STUDY TO DETERMINE POSSIBLE USE OF SHIP SHARING PROGRAM TO PROVIDE
           TRAINING OPPORTUNITIES FOR MARITIME ACADEMY STUDENTS
      Section 4 of Pub. L. 101-115, as amended by Pub. L. 101-595,
    title VII, Sec. 705, Nov. 16, 1990, 104 Stat. 2994, provided that:
    "With the funds authorized under this Act [Pub. L. 101-115, Sec. 1,
    Oct. 13, 1989, 103 Stat. 691], the Secretary of Transportation,
    after consultation with other agencies in the executive branch and
    the State, regional, and Federal maritime academies, shall submit
    to the Congress a study within one year to determine how currently
    employed training vessels, United States-flag commercial vessels,
    vessels in the Ready Reserve Force, and other vessels under the
    control of the United States Government may be used to provide
    training opportunities for State, regional, and Federal maritime
    academy students that will produce licensed graduate officers. The
    study shall include data on the cost effectiveness to the United
    States Government; the cost impact on the affected State
    governments; the safety of any vessels involved; the safety of the
    students; the operational and scheduling impact upon the several
    entities involved; liability exposure; and the impact on national
    security sealift. The Secretary shall not implement any ship
    sharing program until not less than sixty legislative days after
    the submission of the study to the Congress. The Secretary shall
    not take any vessel, currently in service as a State academy
    training vessel, out of service for the purpose of implementing any
    alternative program, including ship sharing, until or unless the
    vessel is incapable of being maintained in good repair as required
    under section 1304(c)(1)(A) of the Merchant Marine Act, 1936 [46
    App. U.S.C. 1295c(c)(1)(A)]. The Secretary shall not implement any
    program requiring that any State academy share its training vessel
    with another State academy without having first received the
    express consent of Congress to do so."

-End-

-CITE-
    46 USC APPENDIX Sec. 1295c-1                                01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER XIII - MARITIME EDUCATION AND TRAINING

-HEAD-
    Sec. 1295c-1. Plan for sharing training vessels

-STATUTE-
      On and after December 22, 1987, no funds shall be appropriated
    for the purchase or construction of training vessels for State
    maritime academies unless a plan for sharing training vessels
    between State maritime academies has been approved by the Maritime
    Administration.

-SOURCE-
    (Pub. L. 100-202, Sec. 101(a) [title V], Dec. 22, 1987, 101 Stat.
    1329, 1329-28.)

-COD-
                               CODIFICATION                           
      Section was not enacted as part of the Merchant Marine Act, 1936,
    which comprises this chapter.

-End-

-CITE-
    46 USC APPENDIX Sec. 1295d                                  01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER XIII - MARITIME EDUCATION AND TRAINING

-HEAD-
    Sec. 1295d. Additional training

-STATUTE-
    (a) In general
      The Secretary may provide additional training on maritime
    subjects, as the Secretary deems necessary, to supplement other
    training opportunities and may make any such training available to
    the personnel of the merchant marine of the United States and to
    individuals preparing for a career in the merchant marine of the
    United States.
    (b) Equipment or supplies required for training
      The Secretary may prepare or purchase any equipment or supplies
    required for any training provided under subsection (a) of this
    section and may contract with any person, partnership, firm,
    association, or corporation (without regard to section 5 of title
    41) for the performance of any services deemed necessary by the
    Secretary in the preparation of any such equipment or supplies and
    in the supervision and administration of any such training.
    (c) Oil pollution prevention, response, and clean-up program
      (1) The Secretary shall assist maritime training institutions
    approved by the Secretary in establishing a maritime oil pollution
    prevention, response, and clean-up training program.
      (2) Under the program established under paragraph (1) - 
        (A) the Secretary may provide, to maritime training
      institutions approved by the Secretary, vessels described in
      paragraph (4), with title free of all liens, subject to the
      requirements specified under paragraph (3); and
        (B) in return for receipt of such vessels, such institutions
      shall - 
          (i) employ the vessels for the training of students and
        appropriate maritime industry personnel in oil spill
        prevention, response, clean-up, and related skills; and
          (ii) make the vessels and qualified students available to
        appropriate Federal, State, and local oil spill response
        authorities in the event of a maritime oil spill.

      (3) The requirements referred to in paragraph (2)(A) are as
    follows:
        (i) any vessel provided under paragraph (2)(A) shall be
      tendered to the approved maritime training institution at a
      location determined by the Secretary;
        (ii) no such vessel may be sold, traded, chartered, donated,
      scrapped, or in any way altered or disposed of without the prior
      approval of the Secretary;
        (iii) no such vessel may be used in competition with any
      privately-owned vessel documented under the laws of the United
      States or any State, unless necessary to carry out the purposes
      of this subsection;
        (iv) any approved maritime training institution in possession
      of such a vessel which can no longer utilize the vessel for
      training purposes shall return the vessel to the Secretary, who
      shall take possession of the vessel at the training institution
      and thereafter may dispose of the vessel, or provide the vessel
      to another approved maritime training institution, as the
      Secretary determines appropriate; and
        (v) such other requirements or conditions as the Secretary
      determines appropriate.

      (4) The vessels referred to in paragraph (2)(A) are United States-
    built offshore supply vessels and United States-built tug/supply
    vessels in the possession of the Maritime Administration as a
    result of defaults on loans guaranteed under subchapter XI of this
    chapter.

-SOURCE-
    (June 29, 1936, ch. 858, title XIII, Sec. 1305, as added Pub. L. 96-
    453, Sec. 2, Oct. 15, 1980, 94 Stat. 2006; amended Pub. L. 101-
    595, title VII, Sec. 712, Nov. 16, 1990, 104 Stat. 2998.)

-MISC1-
                                AMENDMENTS                            
      1990 - Subsec. (c). Pub. L. 101-595 added subsec. (c).

-End-

-CITE-
    46 USC APPENDIX Sec. 1295e                                  01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER XIII - MARITIME EDUCATION AND TRAINING

-HEAD-
    Sec. 1295e. United States Maritime Service

-STATUTE-
    (a) Establishment and maintenance
      The Secretary may establish and maintain a voluntary organization
    for the training of citizens of the United States to serve on
    merchant marine vessels of the United States and to perform
    functions to assist the United States merchant marine, as
    determined necessary by the Secretary, to be known as the United
    States Maritime Service.
    (b) Enrollment; compensation; course of study and periods of
      training; uniforms
      The Secretary may determine the number of individuals to be
    enrolled for training and reserve purposes in such service, to fix
    the rates of pay and allowances of such individuals without regard
    to the provisions of chapter 51 and subchapter III of chapter 53 of
    title 5 (relating to classification and General Schedule pay
    rates), to prescribe the course of study and the periods of
    training in such service, and to prescribe the uniform of such
    service and the rules governing the wearing and furnishing of such
    uniform.
    (c) Ranks, grades, and ratings same as for United States Coast
      Guard
      The ranks, grades, and ratings for personnel of the United States
    Maritime Service shall be the same as are then prescribed for the
    personnel of the United States Coast Guard.
    (d) Awards and medals
      The Secretary may establish and maintain a medals and awards
    program to recognize distinguished service, superior achievement,
    professional performance, and other commendable achievement by
    personnel of the United States Maritime Service.

-SOURCE-
    (June 29, 1936, ch. 858, title XIII, Sec. 1306, as added Pub. L. 96-
    453, Sec. 2, Oct. 15, 1980, 94 Stat. 2006; amended Pub. L. 108-
    136, div. C, title XXXV, Sec. 3515(e), Nov. 24, 2003, 117 Stat.
    1795; Pub. L. 109-163, div. C, title XXXV, Sec. 3509, Jan. 6, 2006,
    119 Stat. 3557.)

-MISC1-
                                AMENDMENTS                            
      2006 - Subsec. (a). Pub. L. 109-163, which directed amendment of
    section 1306(a) of the Maritime Education and Training Act of 1980
    by inserting "and to perform functions to assist the United States
    merchant marine, as determined necessary by the Secretary," after
    "United States" the second place it appears, was executed by making
    the amendment to subsec. (a) of this section, which is section 1306
    of act June 29, 1936, as added by section 2 of the Maritime
    Education and Training Act of 1980, to reflect the probable intent
    of Congress.
      2003 - Subsec. (d). Pub. L. 108-136 added subsec. (d).

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      For transfer of authorities, functions, personnel, and assets of
    the Coast Guard, including the authorities and functions of the
    Secretary of Transportation relating thereto, to the Department of
    Homeland Security, and for treatment of related references, see
    sections 468(b), 551(d), 552(d), and 557 of Title 6, Domestic
    Security, and the Department of Homeland Security Reorganization
    Plan of November 25, 2002, as modified, set out as a note under
    section 542 of Title 6.

-End-

-CITE-
    46 USC APPENDIX Sec. 1295f                                  01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER XIII - MARITIME EDUCATION AND TRAINING

-HEAD-
    Sec. 1295f. Civilian nautical school

-STATUTE-
    (a) "Civilian nautical school" defined
      As used in this section, the term "civilian nautical school"
    means any school operated and conducted in the United States
    (except the Academy maintained under section 1295b of this
    Appendix, any State maritime academy assisted under section 1295c
    of this Appendix, and any other school operated by the United
    States or any agency of the United States) which offers instruction
    to individuals quartered on board any vessel for the primary
    purpose of training them for service in the merchant marine.
    (b) Examination and inspection of school; rating and certification
      Each civilian nautical school shall be subject to examination and
    inspection by the Secretary, and the Secretary may (under such
    rules and regulations as the Secretary may prescribe) provide for
    the rating and certification of such schools as to the adequacy of
    the course of instruction, the competency of the instructors, and
    the suitability of the equipment used by, or in connection with,
    such school.
    (c) Repealed. Pub. L. 98-89, Sec. 4(b), Aug. 26, 1983, 97 Stat. 603
    (d) Fines and penalties
      Whoever - 
        (1) violates this section or any regulations promulgated to
      implement this section;
        (2), (3) Repealed. Pub. L. 98-89, Sec. 4(b), Aug. 26, 1983, 97
      Stat. 603.

    shall be fined not more than $10,000 or imprisoned for not more
    than one year, or both, for each offense.

-SOURCE-
    (June 29, 1936, ch. 858, title XIII, Sec. 1307, as added Pub. L. 96-
    453, Sec. 2, Oct. 15, 1980, 94 Stat. 2007; amended Pub. L. 98-89,
    Sec. 4(b), Aug. 26, 1983, 97 Stat. 603.)

-MISC1-
                                AMENDMENTS                            
      1983 - Subsec. (c). Pub. L. 98-89 struck out subsec. (c). See
    sections 2101(17), 3301(2), 3306, and 3307(1) of Title 46,
    Shipping.
      Subsec. (d)(2), (3). Pub. L. 98-89 struck out pars. (2) and (3).
    See section 3318(g) of Title 46.

-End-

-CITE-
    46 USC APPENDIX Sec. 1295g                                  01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER XIII - MARITIME EDUCATION AND TRAINING

-HEAD-
    Sec. 1295g. Powers and duties of Secretary

-STATUTE-
    (a) Rules and regulations
      The Secretary shall establish such rules and regulations as may
    be necessary to carry out this subchapter.
    (b) Excess vessels and equipment
      The Secretary may cooperate with and assist the Academy, any
    State maritime academy, and any nonprofit training institution
    which has been jointly approved by the Secretary and the Secretary
    of the department in which the United States Coast Guard is
    operating as offering training courses which meet Federal
    regulations for maritime training, by making vessels, shipboard
    equipment, and other marine equipment, owned by the United States
    which have been determined to be excess or surplus, available by
    gift, loan, sale, lease, or charter to such institution for
    instructional purposes on such terms as the Secretary deems
    appropriate.
    (c) Securing of information, facilities, or equipment; detailing of
      personnel
      (1) The Secretary may secure directly from any department or
    agency of the United States any information, facilities, or
    equipment, on a reimbursable basis, necessary to carry out this
    subchapter.
      (2) Upon the request of the Secretary, the head of any department
    or agency of the United States (including any military department
    of the United States) may detail, on a reimbursable basis, any of
    the personnel of such department or agency to the Secretary to
    assist in carrying out this subchapter.
    (d) Employment of personnel
      To carry out this subchapter, the Secretary may employ at the
    Academy any individual as a professor, lecturer, or instructor,
    without regard to the provisions of title 5 (governing appointments
    in the competitive service), and may pay such individual without
    regard to the provisions of chapter 51 and subchapter III of
    chapter 53 of such title (relating to classification and General
    Schedule pay rates).

-SOURCE-
    (June 29, 1936, ch. 858, title XIII, Sec. 1308, as added Pub. L. 96-
    453, Sec. 2, Oct. 15, 1980, 94 Stat. 2007; amended Pub. L. 98-89,
    Sec. 4(b), Aug. 26, 1983, 97 Stat. 603.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The provisions of title 5 (governing appointments in the
    competitive service), referred to in subsec. (d), are classified
    generally to section 3301 et seq. of Title 5, Government
    Organization and Employees.

-MISC1-
                                AMENDMENTS                            
      1983 - Subsec. (e). Pub. L. 98-89 struck out subsec. (e). See
    section 2101(17) of Title 46, Shipping.

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      For transfer of authorities, functions, personnel, and assets of
    the Coast Guard, including the authorities and functions of the
    Secretary of Transportation relating thereto, to the Department of
    Homeland Security, and for treatment of related references, see
    sections 468(b), 551(d), 552(d), and 557 of Title 6, Domestic
    Security, and the Department of Homeland Security Reorganization
    Plan of November 25, 2002, as modified, set out as a note under
    section 542 of Title 6.

-End-

-CITE-
    46 USC APPENDIX CHAPTER 28 - CARRIAGE OF GOODS
           BY SEA                                          01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 28 - CARRIAGE OF GOODS BY SEA

-HEAD-
                   CHAPTER 28 - CARRIAGE OF GOODS BY SEA               

-MISC1-
    Sec.                                                     
    1300.       Bills of lading subject to chapter.                   
    1301.       Definitions.                                          
    1302.       Duties and rights of carrier.                         
    1303.       Responsibilities and liabilities of carrier and ship. 
                  (1)  Seaworthiness.                                 
                  (2)  Cargo.                                         
                  (3)  Contents of bill.                              
                  (4)  Bill as prima facie evidence.                  
                  (5)  Guaranty of statements.                        
                  (6)  Notice of loss or damage; limitation of
                        actions.                                      
                  (7)  "Shipped" bill of lading.                      
                  (8)  Limitation of liability for negligence.        
    1304.       Rights and immunities of carrier and ship.            
                  (1)  Unseaworthiness.                               
                  (2)  Uncontrollable causes of loss.                 
                  (3)  Freedom from negligence.                       
                  (4)  Deviations.                                    
                  (5)  Amount of liability; valuation of cargo.       
                  (6)  Inflammable, explosive, or dangerous cargo.    
    1305.       Surrender of rights; increase of liabilities; charter
                 parties; general average.                            
    1306.       Special agreement as to particular goods.             
    1307.       Agreement as to liability prior to loading or after
                 discharge.                                           
    1308.       Rights and liabilities under other provisions.        
    1309.       Discrimination between competing shippers.            
    1310.       Weight of bulk cargo.                                 
    1311.       Liabilities before loading and after discharge; effect
                 on other laws.                                       
    1312.       Scope of chapter; "United States"; "foreign trade".   
    1313.       Suspension of provisions by President.                
    1314.       Effective date; retroactive effect.                   
    1315.       Short title.                                          

-End-

-CITE-
    46 USC APPENDIX Sec. 1300                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 28 - CARRIAGE OF GOODS BY SEA

-HEAD-
    Sec. 1300. Bills of lading subject to chapter

-STATUTE-
      Every bill of lading or similar document of title which is
    evidence of a contract for the carriage of goods by sea to or from
    ports of the United States, in foreign trade, shall have effect
    subject to the provisions of this chapter.

-SOURCE-
    (Apr. 16, 1936, ch. 229, Sec. 1, 49 Stat. 1207.)

-End-

-CITE-
    46 USC APPENDIX Sec. 1301                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 28 - CARRIAGE OF GOODS BY SEA

-HEAD-
    Sec. 1301. Definitions

-STATUTE-
      When used in this chapter - 
      (a) The term "carrier" includes the owner or the charterer who
    enters into a contract of carriage with a shipper.
      (b) The term "contract of carriage" applies only to contracts of
    carriage covered by a bill of lading or any similar document of
    title, insofar as such document relates to the carriage of goods by
    sea, including any bill of lading or any similar document as
    aforesaid issued under or pursuant to a charter party from the
    moment at which such bill of lading or similar document of title
    regulates the relations between a carrier and a holder of the same.
      (c) The term "goods" includes goods, wares, merchandise, and
    articles of every kind whatsoever, except live animals and cargo
    which by the contract of carriage is stated as being carried on
    deck and is so carried.
      (d) The term "ship" means any vessel used for the carriage of
    goods by sea.
      (e) The term "carriage of goods" covers the period from the time
    when the goods are loaded on to the time when they are discharged
    from the ship.

-SOURCE-
    (Apr. 16, 1936, ch. 229, title I, Sec. 1, 49 Stat. 1208.)

-End-

-CITE-
    46 USC APPENDIX Sec. 1302                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 28 - CARRIAGE OF GOODS BY SEA

-HEAD-
    Sec. 1302. Duties and rights of carrier

-STATUTE-
      Subject to the provisions of section 1306 of this Appendix, under
    every contract of carriage of goods by sea, the carrier in relation
    to the loading, handling, stowage, carriage, custody, care, and
    discharge of such goods, shall be subject to the responsibilities
    and liabilities and entitled to the rights and immunities set forth
    in sections 1303 and 1304 of this Appendix.

-SOURCE-
    (Apr. 16, 1936, ch. 229, title I, Sec. 2, 49 Stat. 1208.)

-End-

-CITE-
    46 USC APPENDIX Sec. 1303                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 28 - CARRIAGE OF GOODS BY SEA

-HEAD-
    Sec. 1303. Responsibilities and liabilities of carrier and ship

-STATUTE-
    (1) Seaworthiness
      The carrier shall be bound, before and at the beginning of the
    voyage, to exercise due diligence to - 
      (a) Make the ship seaworthy;
      (b) Properly man, equip, and supply the ship;
      (c) Make the holds, refrigerating and cooling chambers, and all
    other parts of the ship in which goods are carried, fit and safe
    for their reception, carriage, and preservation.
    (2) Cargo
      The carrier shall properly and carefully load, handle, stow,
    carry, keep, care for, and discharge the goods carried.
    (3) Contents of bill
      After receiving the goods into his charge the carrier, or the
    master or agent of the carrier, shall, on demand of the shipper,
    issue to the shipper a bill of lading showing among other things - 
      (a) The leading marks necessary for identification of the goods
    as the same are furnished in writing by the shipper before the
    loading of such goods starts, provided such marks are stamped or
    otherwise shown clearly upon the goods if uncovered, or on the
    cases or coverings in which such goods are contained, in such a
    manner as should ordinarily remain legible until the end of the
    voyage.
      (b) Either the number of packages or pieces, or the quantity or
    weight, as the case may be, as furnished in writing by the shipper.
      (c) The apparent order and condition of the goods: Provided, That
    no carrier, master, or agent of the carrier, shall be bound to
    state or show in the bill of lading any marks, number, quantity, or
    weight which he has reasonable ground for suspecting not accurately
    to represent the goods actually received, or which he has had no
    reasonable means of checking.
    (4) Bill as prima facie evidence
      Such a bill of lading shall be prima facie evidence of the
    receipt by the carrier of the goods as therein described in
    accordance with paragraphs (3)(a), (b), and (c), of this section:
    Provided, That nothing in this chapter shall be construed as
    repealing or limiting the application of any part of chapter 801 of
    title 49.
    (5) Guaranty of statements
      The shipper shall be deemed to have guaranteed to the carrier the
    accuracy at the time of shipment of the marks, number, quantity,
    and weight, as furnished by him; and the shipper shall indemnify
    the carrier against all loss, damages, and expenses arising or
    resulting from inaccuracies in such particulars. The right of the
    carrier to such indemnity shall in no way limit his responsibility
    and liability under the contract of carriage to any person other
    than the shipper.
    (6) Notice of loss or damage; limitation of actions
      Unless notice of loss or damage and the general nature of such
    loss or damage be given in writing to the carrier or his agent at
    the port of discharge before or at the time of the removal of the
    goods into the custody of the person entitled to delivery thereof
    under the contract of carriage, such removal shall be prima facie
    evidence of the delivery by the carrier of the goods as described
    in the bill of lading. If the loss or damage is not apparent, the
    notice must be given within three days of the delivery.
      Said notice of loss or damage may be endorsed upon the receipt
    for the goods given by the person taking delivery thereof.
      The notice in writing need not be given if the state of the goods
    has at the time of their receipt been the subject of joint survey
    or inspection.
      In any event the carrier and the ship shall be discharged from
    all liability in respect of loss or damage unless suit is brought
    within one year after delivery of the goods or the date when the
    goods should have been delivered: Provided, That if a notice of
    loss or damage, either apparent or concealed, is not given as
    provided for in this section, that fact shall not affect or
    prejudice the right of the shipper to bring suit within one year
    after the delivery of the goods or the date when the goods should
    have been delivered.
      In the case of any actual or apprehended loss or damage the
    carrier and the receiver shall give all reasonable facilities to
    each other for inspecting and tallying the goods.
    (7) "Shipped" bill of lading
      After the goods are loaded the bill of lading to be issued by the
    carrier, master, or agent of the carrier to the shipper shall, if
    the shipper so demands, be a "shipped" bill of lading: Provided,
    That if the shipper shall have previously taken up any document of
    title to such goods, he shall surrender the same as against the
    issue of the "shipped" bill of lading, but at the option of the
    carrier such document of title may be noted at the port of shipment
    by the carrier, master, or agent with the name or names of the ship
    or ships upon which the goods have been shipped and the date or
    dates of shipment, and when so noted the same shall for the purpose
    of this section be deemed to constitute a "shipped" bill of lading.
    (8) Limitation of liability for negligence
      Any clause, covenant, or agreement in a contract of carriage
    relieving the carrier or the ship from liability for loss or damage
    to or in connection with the goods, arising from negligence, fault,
    or failure in the duties and obligations provided in this section,
    or lessening such liability otherwise than as provided in this
    chapter, shall be null and void and of no effect. A benefit of
    insurance in favor of the carrier, or similar clause, shall be
    deemed to be a clause relieving the carrier from liability.

-SOURCE-
    (Apr. 16, 1936, ch. 229, title I, Sec. 3, 49 Stat. 1208.)

-COD-
                               CODIFICATION                           
      In par. (4), "chapter 801 of title 49" substituted for "the Act
    of August 29, 1916, commonly known as the 'Pomerene Bills of Lading
    Act' [49 App. U.S.C. 81 et seq.]" on authority of Pub. L. 103-272,
    Sec. 6(b), July 5, 1994, 108 Stat. 1378, the first section of which
    enacted subtitles II, III, and V to X of Title 49, Transportation.

-End-

-CITE-
    46 USC APPENDIX Sec. 1304                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 28 - CARRIAGE OF GOODS BY SEA

-HEAD-
    Sec. 1304. Rights and immunities of carrier and ship

-STATUTE-
    (1) Unseaworthiness
      Neither the carrier nor the ship shall be liable for loss or
    damage arising or resulting from unseaworthiness unless caused by
    want of due diligence on the part of the carrier to make the ship
    seaworthy, and to secure that the ship is properly manned,
    equipped, and supplied, and to make the holds, refrigerating and
    cool chambers, and all other parts of the ship in which goods are
    carried fit and safe for their reception, carriage, and
    preservation in accordance with the provisions of paragraph (1) of
    section 1303 of this Appendix. Whenever loss or damage has resulted
    from unseaworthiness, the burden of proving the exercise of due
    diligence shall be on the carrier or other persons claiming
    exemption under this section.
    (2) Uncontrollable causes of loss
      Neither the carrier nor the ship shall be responsible for loss or
    damage arising or resulting from - 
      (a) Act, neglect, or default of the master, mariner, pilot, or
    the servants of the carrier in the navigation or in the management
    of the ship;
      (b) Fire, unless caused by the actual fault or privity of the
    carrier;
      (c) Perils, dangers, and accidents of the sea or other navigable
    waters;
      (d) Act of God;
      (e) Act of war;
      (f) Act of public enemies;
      (g) Arrest or restraint of princes, rulers, or people, or seizure
    under legal process;
      (h) Quarantine restrictions;
      (i) Act or omission of the shipper or owner of the goods, his
    agent or representative;
      (j) Strikes or lockouts or stoppage or restraint of labor from
    whatever cause, whether partial or general: Provided, That nothing
    herein contained shall be construed to relieve a carrier from
    responsibility for the carrier's own acts;
      (k) Riots and civil commotions;
      (l) Saving or attempting to save life or property at sea;
      (m) Wastage in bulk or weight or any other loss or damage arising
    from inherent defect, quality, or vice of the goods;
      (n) Insufficiency of packing;
      (o) Insufficiency or inadequacy of marks;
      (p) Latent defects not discoverable by due diligence; and
      (q) Any other cause arising without the actual fault and privity
    of the carrier and without the fault or neglect of the agents or
    servants of the carrier, but the burden of proof shall be on the
    person claiming the benefit of this exception to show that neither
    the actual fault or privity of the carrier nor the fault or neglect
    of the agents or servants of the carrier contributed to the loss or
    damage.
    (3) Freedom from negligence
      The shipper shall not be responsible for loss or damage sustained
    by the carrier or the ship arising or resulting from any cause
    without the act, fault, or neglect of the shipper, his agents, or
    his servants.
    (4) Deviations
      Any deviation in saving or attempting to save life or property at
    sea, or any reasonable deviation shall not be deemed to be an
    infringement or breach of this chapter or of the contract of
    carriage, and the carrier shall not be liable for any loss or
    damage resulting therefrom: Provided, however, That if the
    deviation is for the purpose of loading or unloading cargo or
    passengers it shall, prima facie, be regarded as unreasonable.
    (5) Amount of liability; valuation of cargo
      Neither the carrier nor the ship shall in any event be or become
    liable for any loss or damage to or in connection with the
    transportation of goods in an amount exceeding $500 per package
    lawful money of the United States, or in case of goods not shipped
    in packages, per customary freight unit, or the equivalent of that
    sum in other currency, unless the nature and value of such goods
    have been declared by the shipper before shipment and inserted in
    the bill of lading. This declaration, if embodied in the bill of
    lading, shall be prima facie evidence, but shall not be conclusive
    on the carrier.
      By agreement between the carrier, master, or agent of the
    carrier, and the shipper another maximum amount than that mentioned
    in this paragraph may be fixed: Provided, That such maximum shall
    not be less than the figure above named. In no event shall the
    carrier be liable for more than the amount of damage actually
    sustained.
      Neither the carrier nor the ship shall be responsible in any
    event for loss or damage to or in connection with the
    transportation of the goods if the nature or value thereof has been
    knowingly and fraudulently misstated by the shipper in the bill of
    lading.
    (6) Inflammable, explosive, or dangerous cargo
      Goods of an inflammable, explosive, or dangerous nature to the
    shipment whereof the carrier, master or agent of the carrier, has
    not consented with knowledge of their nature and character, may at
    any time before discharge be landed at any place or destroyed or
    rendered innocuous by the carrier without compensation, and the
    shipper of such goods shall be liable for all damages and expenses
    directly or indirectly arising out of or resulting from such
    shipment. If any such goods shipped with such knowledge and consent
    shall become a danger to the ship or cargo, they may in like manner
    be landed at any place, or destroyed or rendered innocuous by the
    carrier without liability on the part of the carrier except to
    general average, if any.

-SOURCE-
    (Apr. 16, 1936, ch. 229, title I, Sec. 4, 49 Stat. 1210.)

-End-

-CITE-
    46 USC APPENDIX Sec. 1305                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 28 - CARRIAGE OF GOODS BY SEA

-HEAD-
    Sec. 1305. Surrender of rights; increase of liabilities; charter
      parties; general average

-STATUTE-
      A carrier shall be at liberty to surrender in whole or in part
    all or any of his rights and immunities or to increase any of his
    responsibilities and liabilities under this chapter, provided such
    surrender or increase shall be embodied in the bill of lading
    issued to the shipper.
      The provisions of this chapter shall not be applicable to charter
    parties; but if bills of lading are issued in the case of a ship
    under a charter party, they shall comply with the terms of this
    chapter. Nothing in this chapter shall be held to prevent the
    insertion in a bill of lading of any lawful provision regarding
    general average.

-SOURCE-
    (Apr. 16, 1936, ch. 229, title I, Sec. 5, 49 Stat. 1211.)

-End-

-CITE-
    46 USC APPENDIX Sec. 1306                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 28 - CARRIAGE OF GOODS BY SEA

-HEAD-
    Sec. 1306. Special agreement as to particular goods

-STATUTE-
      Notwithstanding the provisions of sections 1303 to 1305 of this
    Appendix, a carrier, master or agent of the carrier, and a shipper
    shall, in regard to any particular goods be at liberty to enter
    into any agreement in any terms as to the responsibility and
    liability of the carrier for such goods, and as to the rights and
    immunities of the carrier in respect of such goods, or his
    obligation as to seaworthiness (so far as the stipulation regarding
    seaworthiness is not contrary to public policy), or the care or
    diligence of his servants or agents in regard to the loading,
    handling, stowage, carriage, custody, care, and discharge of the
    goods carried by sea: Provided, That in this case no bill of lading
    has been or shall be issued and that the terms agreed shall be
    embodied in a receipt which shall be a nonnegotiable document and
    shall be marked as such.
      Any agreement so entered into shall have full legal effect:
    Provided, That this section shall not apply to ordinary commercial
    shipments made in the ordinary course of trade but only to other
    shipments where the character or condition of the property to be
    carried or the circumstances, terms, and conditions under which the
    carriage is to be performed are such as reasonably to justify a
    special agreement.

-SOURCE-
    (Apr. 16, 1936, ch. 229, title I, Sec. 6, 49 Stat. 1211.)

-End-

-CITE-
    46 USC APPENDIX Sec. 1307                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 28 - CARRIAGE OF GOODS BY SEA

-HEAD-
    Sec. 1307. Agreement as to liability prior to loading or after
      discharge

-STATUTE-
      Nothing contained in this chapter shall prevent a carrier or a
    shipper from entering into any agreement, stipulation, condition,
    reservation, or exemption as to the responsibility and liability of
    the carrier or the ship for the loss or damage to or in connection
    with the custody and care and handling of goods prior to the
    loading on and subsequent to the discharge from the ship on which
    the goods are carried by sea.

-SOURCE-
    (Apr. 16, 1936, ch. 229, title I, Sec. 7, 49 Stat. 1212.)

-End-

-CITE-
    46 USC APPENDIX Sec. 1308                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 28 - CARRIAGE OF GOODS BY SEA

-HEAD-
    Sec. 1308. Rights and liabilities under other provisions

-STATUTE-
      The provisions of this chapter shall not affect the rights and
    obligations of the carrier under the provisions of the Shipping
    Act, 1916 [46 App. U.S.C. 801 et seq.], or under the provisions of
    sections 4281 to 4289, inclusive, of the Revised Statutes of the
    United States [46 App. 181-188] or of any amendments thereto; or
    under the provisions of any other enactment for the time being in
    force relating to the limitation of the liability of the owners of
    seagoing vessels.

-SOURCE-
    (Apr. 16, 1936, ch. 229, title I, Sec. 8, 49 Stat. 1212.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Shipping Act, 1916, referred to in text, is act Sept. 7,
    1916, ch. 451, 39 Stat. 728, as amended, which is classified
    generally to chapter 23 (Sec. 801 et seq.) of this Appendix. For
    complete classification of this Act to the Code, see section 842 of
    this Appendix and Tables.
      Section 4288 of the Revised Statutes, referred to in text, was
    classified to section 175 of former Title 46, Shipping, and was
    repealed by act Oct. 9, 1940, ch. 777, Sec. 7, 54 Stat. 1028.

-End-

-CITE-
    46 USC APPENDIX Sec. 1309                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 28 - CARRIAGE OF GOODS BY SEA

-HEAD-
    Sec. 1309. Discrimination between competing shippers

-STATUTE-
      Nothing contained in this chapter shall be construed as
    permitting a common carrier by water to discriminate between
    competing shippers similarly placed in time and circumstances,
    either (a) with respect to their right to demand and receive bills
    of lading subject to the provisions of this chapter; or (b) when
    issuing such bills of lading, either in the surrender of any of the
    carrier's rights and immunities or in the increase of any of the
    carrier's responsibilities and liabilities pursuant to section 1305
    of this Appendix; or (c) in any other way prohibited by the
    Shipping Act, 1916, as amended [46 App. U.S.C. 801 et seq.].

-SOURCE-
    (Apr. 16, 1936, ch. 229, title II, Sec. 9, 49 Stat. 1212.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Shipping Act, 1916, as amended, referred to in text, is act
    Sept. 7, 1916, ch. 451, 39 Stat. 728, as amended, which is
    classified generally to chapter 23 (Sec. 801 et seq.) of this
    Appendix. For complete classification of this Act to the Code, see
    section 842 of this Appendix and Tables.

-End-

-CITE-
    46 USC APPENDIX Sec. 1310                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 28 - CARRIAGE OF GOODS BY SEA

-HEAD-
    Sec. 1310. Weight of bulk cargo

-STATUTE-
      Where under the customs of any trade the weight of any bulk cargo
    inserted in the bill of lading is a weight ascertained or accepted
    by a third party other than the carrier or the shipper, and the
    fact that the weight is so ascertained or accepted is stated in the
    bill of lading, then, notwithstanding anything in this chapter, the
    bill of lading shall not be deemed to be prima facie evidence
    against the carrier of the receipt of goods of the weight so
    inserted in the bill of lading, and the accuracy thereof at the
    time of shipment shall not be deemed to have been guaranteed by the
    shipper.

-SOURCE-
    (Apr. 16, 1936, ch. 229, title II, Sec. 11, 49 Stat. 1212.)

-End-

-CITE-
    46 USC APPENDIX Sec. 1311                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 28 - CARRIAGE OF GOODS BY SEA

-HEAD-
    Sec. 1311. Liabilities before loading and after discharge; effect
      on other laws

-STATUTE-
      Nothing in this chapter shall be construed as superseding any
    part of sections 190 to 196 of this Appendix, or of any other law
    which would be applicable in the absence of this chapter, insofar
    as they relate to the duties, responsibilities, and liabilities of
    the ship or carrier prior to the time when the goods are loaded on
    or after the time they are discharged from the ship.

-SOURCE-
    (Apr. 16, 1936, ch. 229, title II, Sec. 12, 49 Stat. 1212.)

-End-

-CITE-
    46 USC APPENDIX Sec. 1312                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 28 - CARRIAGE OF GOODS BY SEA

-HEAD-
    Sec. 1312. Scope of chapter; "United States"; "foreign trade"

-STATUTE-
      This chapter shall apply to all contracts for carriage of goods
    by sea to or from ports of the United States in foreign trade. As
    used in this chapter the term "United States" includes its
    districts, territories, and possessions. The term "foreign trade"
    means the transportation of goods between the ports of the United
    States and ports of foreign countries. Nothing in this chapter
    shall be held to apply to contracts for carriage of goods by sea
    between any port of the United States or its possessions, and any
    other port of the United States or its possessions: Provided,
    however, That any bill of lading or similar document of title which
    is evidence of a contract for the carriage of goods by sea between
    such ports, containing an express statement that it shall be
    subject to the provisions of this chapter, shall be subjected
    hereto as fully as if subject hereto by the express provisions of
    this chapter: Provided further, That every bill of lading or
    similar document of title which is evidence of a contract for the
    carriage of goods by sea from ports of the United States, in
    foreign trade, shall contain a statement that it shall have effect
    subject to the provisions of this chapter.

-SOURCE-
    (Apr. 16, 1936, ch. 229, title II, Sec. 13, 49 Stat. 1212; Proc.
    No. 2695, eff. July 4, 1946, 11 F.R. 7517, 60 Stat. 1352.)

-COD-
                               CODIFICATION                           
      A proviso in second sentence that the Philippine Legislature
    might by law exclude its application to transportation to or from
    ports of the Philippine Islands was omitted in view of Proc. No.
    2695, set out under section 1394 of Title 22, Foreign Relations and
    Intercourse, which proclaimed the independence of the Philippines.

-End-

-CITE-
    46 USC APPENDIX Sec. 1313                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 28 - CARRIAGE OF GOODS BY SEA

-HEAD-
    Sec. 1313. Suspension of provisions by President

-STATUTE-
      Upon the certification of the Secretary of Transportation that
    the foreign commerce of the United States in its competition with
    that of foreign nations is prejudiced by the provisions, or any of
    them, of sections 1301 to 1308 of this Appendix, or by the laws of
    any foreign country or countries relating to the carriage of goods
    by sea, the President of the United States may, from time to time,
    by proclamation, suspend any or all provisions of said sections for
    such periods of time or indefinitely as may be designated in the
    proclamation. The President may at any time rescind such suspension
    of said sections, and any provisions thereof which may have been
    suspended shall thereby be reinstated and again apply to contracts
    thereafter made for the carriage of goods by sea. Any proclamation
    of suspension or rescission of any such suspension shall take
    effect on a date named therein, which date shall be not less than
    ten days from the issue of the proclamation.
      Any contract for the carriage of goods by sea, subject to the
    provisions of this chapter, effective during any period when
    sections 1301 to 1308 of this Appendix, or any part thereof, are
    suspended, shall be subject to all provisions of law now or
    hereafter applicable to that part of said sections which may have
    thus been suspended.

-SOURCE-
    (Apr. 16, 1936, ch. 229, title II, Sec. 14, 49 Stat. 1213; Pub. L.
    97-31, Sec. 12(146), Aug. 6, 1981, 95 Stat. 166.)

-MISC1-
                                AMENDMENTS                            
      1981 - Pub. L. 97-31 substituted in first par. "Secretary of
    Transportation" for "Secretary of Commerce".

-End-

-CITE-
    46 USC APPENDIX Sec. 1314                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 28 - CARRIAGE OF GOODS BY SEA

-HEAD-
    Sec. 1314. Effective date; retroactive effect

-STATUTE-
      This chapter shall take effect ninety days after April 16, 1936;
    but nothing in this chapter shall apply during a period not to
    exceed one year following April 16, 1936, to any contract for the
    carriage of goods by sea, made before April 16, 1936, nor to any
    bill of lading or similar document of title issued, whether before
    or after such date in pursuance of any such contract as aforesaid.

-SOURCE-
    (Apr. 16, 1936, ch. 229, title II, Sec. 15, 49 Stat. 1213.)

-End-

-CITE-
    46 USC APPENDIX Sec. 1315                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 28 - CARRIAGE OF GOODS BY SEA

-HEAD-
    Sec. 1315. Short title

-STATUTE-
      This chapter may be cited as the "Carriage of Goods by Sea Act."

-SOURCE-
    (Apr. 16, 1936, ch. 229, title II, Sec. 16, 49 Stat. 1213.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This chapter, referred to in text, was in the original "This
    Act", meaning act Apr. 16, 1936, ch. 229, 49 Stat. 1207, as
    amended, which enacted this chapter and amended section 25 of
    former Title 49, Transportation. For complete classification of
    this Act to the Code, see Tables.

-End-

-CITE-
    46 USC APPENDIX CHAPTER 34 - SAFE CONTAINERS FOR
           INTERNATIONAL CARGO                             01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 34 - SAFE CONTAINERS FOR INTERNATIONAL CARGO

-HEAD-
           CHAPTER 34 - SAFE CONTAINERS FOR INTERNATIONAL CARGO       

-MISC1-
    Sec.                                                     
    1501.       Definitions.                                          
    1502.       Duties of owners of containers.                       
                  (a)  Initial approval of containers; periodic
                        examination.                                  
                  (b)  Repealed.                                      
    1503.       Duties of Secretary of Transportation.                
                  (a)  Enforcement.                                   
                  (b)  Regulations.                                   
                  (c)  Affixation of approval plate; delegation of
                        authority; fees.                              
                  (d)  Method of delegating authority.                
                  (e)  Intermodal transport.                          
    1504.       Areas of enforcement.                                 
                  (a)  Examination of containers; detention orders;
                        restriction or removal of containers from
                        service.                                      
                  (b)  Costs of examinations.                         
                  (c)  Presumption of safe condition.                 
                  (d)  Notification of detention or other order;
                        duration of order.                            
                  (e)  Notification to foreign country of defect at
                        time of approval.                             
    1505.       Penalties.                                            
                  (a)  Civil penalty.                                 
                  (b)  Assessment, collection, remission, mitigation,
                        and compromise of penalties.                  
    1506.       Employee protection.                                  
                  (a)  Discrimination against a reporting employee
                        prohibited.                                   
                  (b)  Complaint alleging discrimination.             
                  (c)  Investigation by Secretary of Labor; judicial
                        relief.                                       
                  (d)  Notification to complainant of intended action.
    1507.       Amendments to Convention.                             
                  (a)  Proposed amendments; advice and consent of
                        Senate; declaration of non-acceptance.        
                  (b)  Amendment of Convention annexes.               
                  (c)  Appointment of arbitrator.                     

-End-

-CITE-
    46 USC APPENDIX Sec. 1501                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 34 - SAFE CONTAINERS FOR INTERNATIONAL CARGO

-HEAD-
    Sec. 1501. Definitions

-STATUTE-
      As used in this chapter - 
      (a) The term "Secretary" means the Secretary of Transportation.
      (b) The term "Convention" means the International Convention for
    Safe Containers, and the annexes thereto, done at Geneva,
    Switzerland, December 2, 1972.
      (c) The term "container" shall have the same meaning as that term
    is defined in the Convention.
      (d) The term "international transport" means the transportation
    of a container - 
        (1) to any place within the jurisdiction of the United States
      from a place within a foreign country;
        (2) by United States carriers between two points both of which
      are outside of the United States; or
        (3) from any place within the jurisdiction of the United States
      to any place within a foreign country.

      (e) The term "United States" includes the several States, the
    District of Columbia, the Commonwealth of Puerto Rico, the Canal
    Zone, Guam, American Samoa, the United States Virgin Islands, the
    Trust Territory of the Pacific Islands, and any other territory or
    possession of the United States.
      (f) The term "new container" means a container (other than a
    container specially designed for air transport) which is used or is
    designed for use in international transport, the construction of
    which began on or after September 6, 1977.
      (g) The term "existing container" means a container (other than a
    container specially designed for air transport) which is used or is
    designed for use in international transport and which is not a new
    container.
      (h) The term "owner" means a person who owns a container, or, if
    a written lease or bailment provides for the lessee or bailee to
    exercise the owner's responsibility for maintaining and examining
    the container, the lessee or bailee of a container, to the extent
    such agreement so provides.
      (i) The term "safety approval plate" shall have the same meaning
    as that term is defined in annex I of the Convention.

-SOURCE-
    (Pub. L. 95-208, Sec. 2, Dec. 13, 1977, 91 Stat. 1475.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      For definition of Canal Zone, referred to in subsec. (e), see
    section 3602(b) of Title 22, Foreign Relations and Intercourse.

-MISC1-
                                SHORT TITLE                            
      Section 1 of Pub. L. 95-208 provided: "That this Act [enacting
    this chapter] may be cited as the 'International Safe Container
    Act'."

-TRANS-
           TERMINATION OF TRUST TERRITORY OF THE PACIFIC ISLANDS       
      For termination of Trust Territory of the Pacific Islands, see
    note set out preceding section 1681 of Title 48, Territories and
    Insular Possessions.

-End-

-CITE-
    46 USC APPENDIX Sec. 1502                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 34 - SAFE CONTAINERS FOR INTERNATIONAL CARGO

-HEAD-
    Sec. 1502. Duties of owners of containers

-STATUTE-
    (a) Initial approval of containers; periodic examination
      Beginning on the date the instrument of ratification is deposited
    by the United States in accordance with the provisions of article
    VII of the Convention, for new containers, and beginning on
    September 6, 1982, for existing containers, the owner of each such
    container - 
        (1) who is domiciled and has his principal office in the United
      States, shall have each such container initially approved in
      accordance with the procedure established by the Secretary or by
      the administration of another contracting party to the
      Convention; and shall, thereafter, have each such container
      periodically examined, as provided in the Convention, in
      accordance with the procedure established by the Secretary; and
        (2) who is either domiciled or has his principal office in the
      United States, shall have each such container initially approved
      in accordance with the procedure established by the Secretary or
      by the administration of another contracting party to the
      Convention; and shall, thereafter, have each such container
      periodically examined, as provided in the Convention, in
      accordance with the procedure established by the administration
      of either the country where he is domiciled or has his principal
      office (so long as such country is a party to the Convention).

    Any owner of either a new or existing container who is neither
    domiciled nor maintains a principal office in the United States, or
    in any other country which is a party to the Convention, may submit
    their containers for approval and periodic examination according to
    the procedure established by the Secretary.
    (b) Repealed. Pub. L. 101-225, title III, Sec. 307(10), Dec. 12,
      1989, 103 Stat. 1925

-SOURCE-
    (Pub. L. 95-208, Sec. 3, Dec. 13, 1977, 91 Stat. 1476; Pub. L. 97-
    249, Sec. 1(1), Sept. 8, 1982, 96 Stat. 708; Pub. L. 101-225,
    title III, Sec. 307(10), Dec. 12, 1989, 103 Stat. 1925.)

-MISC1-
                                AMENDMENTS                            
      1989 - Subsec. (b). Pub. L. 101-225 struck out subsec. (b) which
    related to approval of existing containers.
      1982 - Subsec. (b). Pub. L. 97-249 substituted "before January 1,
    1985, an owner of an approved existing container may have a safety
    approval plate affixed to it, if that container" for "before
    September 6, 1982, an owner of an existing container may have such
    container approved according to the procedure established by the
    Secretary, and have a safety approval plate affixed to it, if such
    container".

                     EFFECTIVE DATE OF 1982 AMENDMENT                 
      Section 2 of Pub. L. 97-249 provided that: "This Act [amending
    this section and section 1504 of this Appendix] shall take effect
    on the later of the date of its enactment [Sept. 8, 1982] or
    September 6, 1982."

-End-

-CITE-
    46 USC APPENDIX Sec. 1503                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 34 - SAFE CONTAINERS FOR INTERNATIONAL CARGO

-HEAD-
    Sec. 1503. Duties of Secretary of Transportation

-STATUTE-
    (a) Enforcement
      On and after the date the instrument of ratification is deposited
    by the United States in accordance with the provisions of article
    VII of the Convention, the Secretary shall enforce and carry out
    the provisions of the Convention, and, unless an earlier date is
    specifically provided, the provisions of this chapter, in the
    United States.
    (b) Regulations
      The Secretary shall, as soon as practicable after December 13,
    1977, promulgate, and from time to time, amend, those regulations
    he deems necessary for such enforcement. Such regulations, among
    other things, shall - 
        (1) establish procedures for the testing, inspection, and
      initial approval of existing and new containers and of designs
      for new containers, including procedures relating to the
      affixing, invalidating, and removal of safety approval plates for
      containers;
        (2) establish procedures to be followed by owners of containers
      relating to the periodic examination of containers, as provided
      in the Convention; and
        (3) provide a method for developing, collecting, and
      disseminating data concerning container safety and the
      international transport of containers.
    (c) Affixation of approval plate; delegation of authority; fees
      At any time after December 13, 1977, the Secretary may - 
        (1) authorize the affixation of a safety approval plate to any
      container which, after examination, is found not to have a safety
      approval plate attached to it and which the owner has established
      meets the standards of the Convention;
        (2) delegate and withdraw the delegation of authority to
      initially approve existing and new containers and designs for new
      containers, and to authorize the affixing of safety approval
      plates; and
        (3) establish a schedule of fees to be charged and collected
      for services performed by the Secretary, or under authority
      delegated by the Secretary, relating to the testing, inspection,
      and initial approval of containers and container designs.
    (d) Method of delegating authority
      Those delegations made under subsection (c)(2) of this section
    may be made to any person, including any public or private agency
    or nonprofit organization. The Secretary (!1) before making any
    delegation under such subsection, shall promulgate regulations
    relating to - 

        (1) the criteria to be followed in selecting a person, public
      or private agency, or nonprofit organization as a recipient of
      delegated functions under such subsection;
        (2) the manner in which such recipient shall carry out such
      delegated functions, including the records such recipient must
      keep, and a detailed description of the exact functions such
      recipient may exercise; and
        (3) the review that will be carried out by the Secretary to
      determine that any recipient of delegated functions is performing
      properly the functions so delegated.

    No recipient of authority delegated under such subsection may
    assess or collect, or attempt to assess or collect, any penalty for
    violation of any provision of this chapter, the Convention, or any
    order of the Secretary issued under this chapter, or issue or
    attempt to issue any detention or other order. Any records required
    to be kept by regulations promulgated by the Secretary under this
    subsection shall be available to the Secretary, for inspection,
    upon request. The name and address of the recipient, if other than
    the owner, together with the functions so delegated and the period
    of designation, shall be published in the Federal Register and
    otherwise publicized as appropriate.
    (e) Intermodal transport
      The Secretary shall, to the maximum possible extent, encourage
    the development and use of intermodal transport, using containers
    constructed to facilitate economical, safe, and expeditious
    handling of containerized cargo without intermediate reloading
    while such cargo is in transport over land, air, and sea areas.

-SOURCE-
    (Pub. L. 95-208, Sec. 4, Dec. 13, 1977, 91 Stat. 1476.)

-FOOTNOTE-
    (!1) So in original. Probably should be followed by a comma.

-End-

-CITE-
    46 USC APPENDIX Sec. 1504                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 34 - SAFE CONTAINERS FOR INTERNATIONAL CARGO

-HEAD-
    Sec. 1504. Areas of enforcement

-STATUTE-
    (a) Examination of containers; detention orders; restriction or
      removal of containers from service
      (1) On and after the date the instrument of ratification is
    deposited by the United States in accordance with the provisions of
    article VII of the Convention, to ensure compliance with this
    chapter, and with the Convention, the Secretary may - 
        (A) examine, or require to be examined, new containers, and
      existing containers which are subject to this chapter, in
      international transport, and test, inspect, and approve designs
      for new containers and new containers being manufactured;
        (B) issue a detention order removing or excluding a container
      from service until the owner of the container establishes to the
      Secretary's satisfaction that the container meets the standards
      of the Convention, if the container is subject to this chapter
      and does not have a valid safety approval plate attached to it,
      or if there is significant evidence that such a container bearing
      a safety approval plate is in a condition which creates an
      obvious risk to safety; and
        (C) take whatever other appropriate action he deems necessary,
      including issuance of any necessary orders, to remove the
      container involved from service, or restrict its use, in those
      instances where he finds that a container is not in compliance
      with the provisions of this chapter or the Convention but does
      not present an obvious risk to safety.

    The Secretary may permit the movement to another location of a
    container which he finds to be unsafe or which does not have a
    valid safety approval plate affixed to it, under whatever
    restriction he considers necessary and consistent with the intent
    of the Convention, for repair or other appropriate disposition.
      (2) Beginning on January 1, 1985, the Secretary may examine or
    require to be examined any existing container in international
    transport.
    (b) Costs of examinations
      The owner of the container involved in any action taken by the
    Secretary under this section with respect to an examination of a
    container, shall pay for or reimburse the Secretary for expenses
    arising from such actions, except for the costs of routine
    examinations of containers or safety approval plates. In addition,
    the owner of containers submitted to the procedure established by
    the Secretary for testing, inspection, and initial approval, and
    the manufacturers who submit designs of containers to the
    procedures established by the Secretary for testing, inspection,
    and initial approval shall pay for or reimburse the Secretary for
    the expenses arising from such testing, inspection or approval.
    Funds received by the Secretary in reimbursement shall be credited
    to the appropriations bearing the cost thereof.
    (c) Presumption of safe condition
      A container bearing a safety approval plate authorized by a
    country which is a party to the Convention shall be presumed to be
    in a safe condition unless there is significant evidence that the
    container creates an obvious risk to safety.
    (d) Notification of detention or other order; duration of order
      Whenever the Secretary issues a detention or other order under
    this section, he shall promptly notify, in writing, either the
    owner of the container subject to such order, his agent, or, when
    the identity of such owner is not apparent from the container of
    (!1) shipping documents, the custodian. The notification shall
    reasonably identify the container involved, give the location of
    the container, and reasonably describe the condition or situation
    which gave rise to the order. An order issued by the Secretary
    under this section shall remain in effect until the container is
    declared by the Secretary, or under regulations promulgated by the
    Secretary, to be in compliance with the standards of the
    Convention, or until it is permanently removed from service,
    whichever first occurs.

    (e) Notification to foreign country of defect at time of approval
      If there is reason to believe that a container to which there is
    affixed a safety approval plate issued by a foreign country was
    defective at the time of approval, the Secretary shall notify the
    country which issued the approval of such defect.

-SOURCE-
    (Pub. L. 95-208, Sec. 5, Dec. 13, 1977, 91 Stat. 1477; Pub. L. 97-
    249, Sec. 1(2), Sept. 8, 1982, 96 Stat. 708.)

-MISC1-
                                AMENDMENTS                            
      1982 - Subsec. (a)(2). Pub. L. 97-249 substituted "January 1,
    1985" for "September 6, 1982".

                     EFFECTIVE DATE OF 1982 AMENDMENT                 
      Amendment by Pub. L. 97-249 effective Sept. 8, 1982, see section
    2 of Pub. L. 97-249, set out as a note under section 1502 of this
    Appendix.

-FOOTNOTE-
    (!1) So in original. Probably should be "or".

-End-

-CITE-
    46 USC APPENDIX Sec. 1505                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 34 - SAFE CONTAINERS FOR INTERNATIONAL CARGO

-HEAD-
    Sec. 1505. Penalties

-STATUTE-
    (a) Civil penalty
      On and after the date the instrument of ratification is deposited
    by the United States in accordance with the provisions of article
    VII of the Convention, any owner, agent, or custodian who - 
        (1) has been notified of an order issued by the Secretary under
      section 1504 of this Appendix; and
        (2) fails to take reasonable and prompt action to prevent or
      stop a container subject to that order from being moved in
      violation of that order;

    shall be subject to a civil penalty of not more than $5,000 for
    each container so moved. Each day the container remains in service
    while the order is in effect shall be treated as a separate
    violation.
    (b) Assessment, collection, remission, mitigation, and compromise
      of penalties
      The Secretary shall assess and collect any penalty incurred under
    this section, and, in his discretion may remit, mitigate, or
    compromise any such penalty. No penalty shall be assessed until
    after the person charged has been given notice and an opportunity
    for a hearing. In assessing, remitting, mitigating, or compromising
    a penalty the Secretary shall consider the gravity of the
    violation, the hazards involved, and the record of the person
    charged with respect to violations of this chapter or of the
    Convention. Upon failure of any person to pay any penalty assessed
    against him by the Secretary, the Secretary shall request the
    Attorney General to begin an action in any district court of the
    United States to recover the amount of the penalty unpaid.

-SOURCE-
    (Pub. L. 95-208, Sec. 6, Dec. 13, 1977, 91 Stat. 1478.)

-End-

-CITE-
    46 USC APPENDIX Sec. 1506                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 34 - SAFE CONTAINERS FOR INTERNATIONAL CARGO

-HEAD-
    Sec. 1506. Employee protection

-STATUTE-
    (a) Discrimination against a reporting employee prohibited
      No person shall discharge or in any manner discriminate against
    an employee because the employee has reported the existence of an
    unsafe container or reported a violation of this chapter to the
    Secretary or his agents.
    (b) Complaint alleging discrimination
      An employee who believes that he has been discharged or
    discriminated against in violation of this section may, within 60
    days after the violation occurs, file a complaint alleging
    discrimination with the Secretary of Labor.
    (c) Investigation by Secretary of Labor; judicial relief
      The Secretary of Labor may investigate the complaint and, if he
    determines that this section has been violated, bring an action in
    an appropriate United States district court. The district court
    shall have jurisdiction to restrain violations of subsection (a) of
    this section and to order appropriate relief, including rehiring
    and reinstatement of the employee to his former position with back
    pay.
    (d) Notification to complainant of intended action
      Within 30 days after the receipt of a complaint filed under this
    section the Secretary of Labor shall notify the complainant of his
    intended action regarding the complaint.

-SOURCE-
    (Pub. L. 95-208, Sec. 7, Dec. 13, 1977, 91 Stat. 1479.)

-End-

-CITE-
    46 USC APPENDIX Sec. 1507                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 34 - SAFE CONTAINERS FOR INTERNATIONAL CARGO

-HEAD-
    Sec. 1507. Amendments to Convention

-STATUTE-
    (a) Proposed amendments; advice and consent of Senate; declaration
      of non-acceptance
      The Secretary of State, with the concurrence of the Secretary,
    may propose amendments to the Convention or may request a
    conference for amending the Convention in accordance with article
    IX of the Convention. An amendment communicated to the United
    States in accordance with article IX(2) of the Convention may be
    accepted for the United States by the President, with the advice
    and consent of the Senate. The President may make a declaration
    that the United States does not accept an amendment.
    (b) Amendment of Convention annexes
      The Secretary of State, with the concurrence of the Secretary,
    may propose amendments to the annexes of the Convention, may
    propose a conference for amending annexes to the Convention and
    shall consider and act on amendments to the annexes of the
    Convention adopted by the Maritime Safety Committee and
    communicated to the United States in accordance with article X(2)
    of the Convention. If a proposed amendment is approved by the
    United States, the amendment shall enter into force in accordance
    with article X of the Convention. If any proposed amendment is
    objected to, the Secretary of State shall promptly communicate the
    objection as provided in article X(3) of the Convention.
    (c) Appointment of arbitrator
      The Secretary of State, with the concurrence of the Secretary,
    shall appoint an arbitrator when one is required to resolve a
    dispute within the meaning of article XIII of the Convention.

-SOURCE-
    (Pub. L. 95-208, Sec. 8, Dec. 13, 1977, 91 Stat. 1479.)

-End-

-CITE-
    46 USC APPENDIX CHAPTER 35 - MARITIME
           ADMINISTRATION                                  01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 35 - MARITIME ADMINISTRATION

-HEAD-
                   CHAPTER 35 - MARITIME ADMINISTRATION               

-MISC1-
    Sec.                                                     
    1601.       Transfer of Administration.                           
    1602.       Transfer of functions, powers, and duties.            
    1603.       Administrator; appointment, compensation, etc.        
    1604.       Exercise of authorities.                              
    1605.       Transfer of personnel and funds.                      
    1607.       Use of personnel for implementation of transfer
                 provisions.                                          
    1608.       Administrative determinations and proceedings.        
                  (a)  Continuation in effect of orders,
                        determinations, etc., issued, made, granted,
                        or effective in performance of functions
                        transferred.                                  
                  (b)  Continuation of pending proceedings and
                        applications during transfer period; Maritime
                        Subsidy Board actions pending on review;
                        promulgation of regulations for orderly
                        transfer of continued proceedings.            
                  (c)  Actions and proceedings commenced prior to
                        transfer of functions.                        
                  (d)  Abatement of actions, proceedings, etc.        
                  (e)  Substitution of parties.                       
                  (f)  Administrative and judicial review procedures
                        applicable.                                   
    1609.       References in other Federal laws to functions or
                 offices transferred.                                 
    1610.       Severability.                                         

-End-

-CITE-
    46 USC APPENDIX Sec. 1601                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 35 - MARITIME ADMINISTRATION

-HEAD-
    Sec. 1601. Transfer of Administration

-STATUTE-
      The Maritime Administration of the Department of Commerce is
    transferred to the Department of Transportation.

-SOURCE-
    (Pub. L. 97-31, Sec. 2, Aug. 6, 1981, 95 Stat. 151.)

-MISC1-
                                SHORT TITLE                            
      Section 1 of Pub. L. 97-31 provided: "That this Act [see Tables
    for classification] may be cited as the 'Maritime Act of 1981'."

-End-

-CITE-
    46 USC APPENDIX Sec. 1602                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 35 - MARITIME ADMINISTRATION

-HEAD-
    Sec. 1602. Transfer of functions, powers, and duties

-STATUTE-
      There are transferred to the Department of Transportation and
    vested in the Secretary of Transportation all functions, powers,
    and duties relating to the Maritime Administration of the Secretary
    of Commerce and of officers and offices of the Department of
    Commerce.

-SOURCE-
    (Pub. L. 97-31, Sec. 3, Aug. 6, 1981, 95 Stat. 151.)

-End-

-CITE-
    46 USC APPENDIX Sec. 1603                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 35 - MARITIME ADMINISTRATION

-HEAD-
    Sec. 1603. Administrator; appointment, compensation, etc.

-STATUTE-
      There shall be at the head of the Maritime Administration an
    Administrator, who shall be appointed by the President, by and with
    the advice and consent of the Senate, and who shall be compensated
    at the rate provided for level III of the Executive Schedule. The
    Maritime Administrator shall report directly to the Secretary of
    Transportation and shall perform such duties as the Secretary of
    Transportation shall prescribe.

-SOURCE-
    (Pub. L. 97-31, Sec. 4, Aug. 6, 1981, 95 Stat. 151.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Level III of the Executive Schedule, referred to in text, is set
    out in section 5314 of Title 5, Government Organization and
    Employees.

-End-

-CITE-
    46 USC APPENDIX Sec. 1604                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 35 - MARITIME ADMINISTRATION

-HEAD-
    Sec. 1604. Exercise of authorities

-STATUTE-
      In carrying out any function transferred by this Act, the
    Secretary of Transportation may exercise any authority available by
    law to the Secretary of Commerce with respect to such function and
    the actions of the Secretary of Transportation in exercising such
    authority shall have the same force and effect as if exercised by
    the Secretary of Commerce on the day preceding August 6, 1981.

-SOURCE-
    (Pub. L. 97-31, Sec. 5, Aug. 6, 1981, 95 Stat. 151.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This Act, referred to in text, is Pub. L. 97-31, Aug. 6, 1981, 95
    Stat. 151, known as the Maritime Act of 1981. For complete
    classification of this Act to the Code, see Short Title note set
    out under section 1601 of this Appendix and Tables.

-End-

-CITE-
    46 USC APPENDIX Sec. 1605                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 35 - MARITIME ADMINISTRATION

-HEAD-
    Sec. 1605. Transfer of personnel and funds

-STATUTE-
      The personnel employed in connection with, and the assets,
    liabilities, contracts, property, facilities, records, and
    unexpended balance of appropriations, and other funds employed,
    held, used, arising from, available to, or to be made available in
    connection with the functions and offices, or portions thereof,
    transferred by this Act, including all Senior Executive Service
    positions, subject to section 1531 of title 31, shall be
    transferred to the Secretary of Transportation for appropriate
    allocation. Personnel employed in connection with functions
    transferred by this Act shall be transferred in accordance with any
    applicable laws and regulations relating to transfer of functions.
    Unexpended funds transferred pursuant to this section shall be used
    only for the purposes for which the funds were originally
    authorized and appropriated, except that such funds may be used for
    the expenses associated with the transfer pursuant to this Act.

-SOURCE-
    (Pub. L. 97-31, Sec. 6, Aug. 6, 1981, 95 Stat. 151.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This Act, referred to in text, is Pub. L. 97-31, Aug. 6, 1981, 95
    Stat. 151, known as the Maritime Act of 1981. For complete
    classification of this Act to the Code, see Short Title note set
    out under section 1601 of this Appendix and Tables.

-COD-
                               CODIFICATION                           
      "Section 1531 of title 31" substituted in text for "section 202
    of the Budget and Accounting Procedures Act of 1950 [31 U.S.C.
    581c]" on authority of Pub. L. 97-258, Sec. 4(b), Sept. 13, 1982,
    96 Stat. 1067, the first section of which enacted Title 31, Money
    and Finance.

-End-

-CITE-
    46 USC APPENDIX Sec. 1607                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 35 - MARITIME ADMINISTRATION

-HEAD-
    Sec. 1607. Use of personnel for implementation of transfer
      provisions

-STATUTE-
      With the consent of the Secretary of Commerce, the Secretary of
    Transportation may use the services of such officers, employees,
    and other personnel of the Department of Commerce as needed to
    implement this Act.

-SOURCE-
    (Pub. L. 97-31, Sec. 8, Aug. 6, 1981, 95 Stat. 152.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This Act, referred to in text, is Pub. L. 97-31, Aug. 6, 1981, 95
    Stat. 151, known as the Maritime Act of 1981. For complete
    classification of this Act to the Code, see Short Title note set
    out under section 1601 of this Appendix and Tables.

-End-

-CITE-
    46 USC APPENDIX Sec. 1608                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 35 - MARITIME ADMINISTRATION

-HEAD-
    Sec. 1608. Administrative determinations and proceedings

-STATUTE-
    (a) Continuation in effect of orders, determinations, etc., issued,
      made, granted, or effective in performance of functions
      transferred
      All orders, determinations, rules, regulations, permits, grants,
    contracts, agreements, certificates, licenses, and privileges - 
        (1) which have been issued, made, granted, or allowed to become
      effective by the President, any Federal department or agency or
      official thereof, or by a court of competent jurisdiction, in the
      performance of functions which are transferred under this Act to
      the Secretary of Transportation or the Department of
      Transportation, and
        (2) which are in effect on August 6, 1981,

    shall continue in effect according to their terms until modified,
    terminated, superseded, set aside, or revoked in accordance with
    law by the President, the Secretary of Transportation, or other
    authorized official, a court of competent jurisdiction, or by
    operation of law.
    (b) Continuation of pending proceedings and applications during
      transfer period; Maritime Subsidy Board actions pending on
      review; promulgation of regulations for orderly transfer of
      continued proceedings
      (1) This Act does not affect any proceedings, including notices
    of proposed rulemaking, or any application for any license, permit,
    certificate, or financial assistance, pending on August 6, 1981,
    but such proceedings and applications, to the extent that they
    relate to functions so transferred and except as provided in
    paragraph (2), shall be continued at the Department of
    Transportation. Orders shall be issued in such proceedings, appeals
    shall be taken therefrom, and payments shall be made pursuant to
    such orders, as if this Act had not been enacted; and orders issued
    in any such proceedings shall continue in effect until modified,
    terminated, superseded, or revoked by the Secretary of
    Transportation, by a court of competent jurisdiction, or by
    operation of law. This subsection does not prohibit the
    discontinuance or modification of any such proceeding under the
    same terms and conditions and to the same extent that the
    proceeding could have been discontinued or modified if this Act had
    not been enacted.
      (2) Actions of the Maritime Subsidy Board pending on review
    before the Secretary of Commerce on the day preceding August 6,
    1981, shall remain with the Secretary of Commerce, unless otherwise
    agreed between the Secretary of Commerce and the Secretary of
    Transportation, for final administrative disposition as though this
    Act had not been enacted.
      (3) The Secretary of Transportation may promulgate regulations
    providing for the orderly transfer of proceedings continued under
    paragraph (1).
    (c) Actions and proceedings commenced prior to transfer of
      functions
      Except as provided in subsection (e) of this section - 
        (1) the provisions of this Act shall not affect actions
      commenced prior to August 6, 1981, and
        (2) in all such actions, proceedings shall be had, appeals
      taken, and judgments rendered in the same manner and effect as if
      this Act had not been enacted.
    (d) Abatement of actions, proceedings, etc.
      No action or other proceeding commenced by or against any officer
    of the Maritime Administration in his official capacity shall abate
    by reason of the enactment of this Act. No cause of action by or
    against the Maritime Administration or by or against any officer of
    the Maritime Administration in his official capacity shall abate by
    reason of the enactment of this Act.
    (e) Substitution of parties
      If, before August 6, 1981, the Secretary of Commerce is a party
    to an action, and under this Act any function of the Secretary of
    Commerce which is the subject of the action is transferred to the
    Secretary of Transportation, then such action shall be continued
    with the Secretary of Transportation substituted as a party.
    (f) Administrative and judicial review procedures applicable
      Orders and actions of the Secretary of Transportation in the
    exercise of functions transferred under this Act shall be subject
    to judicial review as if such orders and actions had been by the
    Secretary of Commerce exercising such functions immediately
    preceding their transfer. Any statutory requirements relating to
    notice, hearings, action upon the record, or administrative review
    that apply to any function transferred by this Act shall apply to
    the exercise of such function by the Secretary of Transportation.

-SOURCE-
    (Pub. L. 97-31, Sec. 9, Aug. 6, 1981, 95 Stat. 152.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This Act, referred to in text, is Pub. L. 97-31, Aug. 6, 1981, 95
    Stat. 151, known as the Maritime Act of 1981. For complete
    classification of this Act to the Code, see Short Title note set
    out under section 1601 of this Appendix and Tables.

-End-

-CITE-
    46 USC APPENDIX Sec. 1609                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 35 - MARITIME ADMINISTRATION

-HEAD-
    Sec. 1609. References in other Federal laws to functions or offices
      transferred

-STATUTE-
      With respect to any function or office transferred by this Act
    and exercised on or after August 6, 1981, reference in any other
    Federal law to the Maritime Administration or any of its
    predecessor agencies or any officer or office the functions of
    which are so transferred shall be deemed to refer to the Secretary
    of Transportation, other official, or component of the Department
    of Transportation to which this Act transfers such functions.

-SOURCE-
    (Pub. L. 97-31, Sec. 10, Aug. 6, 1981, 95 Stat. 153.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This Act, referred to in text, is Pub. L. 97-31, Aug. 6, 1981, 95
    Stat. 151, known as the Maritime Act of 1981. For complete
    classification of this Act to the Code, see Short Title note set
    out under section 1601 of this Appendix and Tables.

-End-

-CITE-
    46 USC APPENDIX Sec. 1610                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 35 - MARITIME ADMINISTRATION

-HEAD-
    Sec. 1610. Severability

-STATUTE-
      If any provisions of this Act or the application thereof to any
    person or circumstance is held invalid, neither the remainder of
    this Act nor the application of such provision to other persons or
    circumstances shall be affected thereby.

-SOURCE-
    (Pub. L. 97-31, Sec. 11, Aug. 6, 1981, 95 Stat. 153.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This Act, referred to in text, is Pub. L. 97-31, Aug. 6, 1981, 95
    Stat. 151, known as the Maritime Act of 1981. For complete
    classification of this Act to the Code, see Short Title note set
    out under section 1601 of this Appendix and Tables.

-End-

-CITE-
    46 USC APPENDIX CHAPTER 36 - INTERNATIONAL OCEAN
           COMMERCE TRANSPORTATION                         01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 36 - INTERNATIONAL OCEAN COMMERCE TRANSPORTATION

-HEAD-
         CHAPTER 36 - INTERNATIONAL OCEAN COMMERCE TRANSPORTATION     

-MISC1-
    Sec.                                                     
    1701.       Declaration of policy.                                
    1702.       Definitions.                                          
    1703.       Agreements within scope of chapter.                   
                  (a)  Ocean common carriers.                         
                  (b)  Marine terminal operators.                     
                  (c)  Acquisitions.                                  
    1704.       Agreements.                                           
                  (a)  Filing requirements.                           
                  (b)  Conference agreements.                         
                  (c)  Ocean common carrier agreements.               
                  (d)  Interconference agreements.                    
                  (e)  Assessment agreements.                         
                  (f)  Maritime labor agreements.                     
                  (g)  Vessel sharing agreements.                     
    1705.       Action on agreements.                                 
                  (a)  Notice.                                        
                  (b)  Review standard.                               
                  (c)  Review and effective date.                     
                  (d)  Additional information.                        
                  (e)  Request for expedited approval.                
                  (f)  Term of agreements.                            
                  (g)  Substantially anticompetitive agreements.      
                  (h)  Injunctive relief.                             
                  (i)  Compliance with informational needs.           
                  (j)  Nondisclosure of submitted material.           
                  (k)  Representation.                                
    1706.       Exemption from antitrust laws.                        
                  (a)  In general.                                    
                  (b)  Exceptions.                                    
                  (c)  Limitations.                                   
    1707.       Tariffs.                                              
                  (a)  In general.                                    
                  (b)  Time-volume rates.                             
                  (c)  Service contracts.                             
                  (d)  Tariff rates.                                  
                  (e)  Refunds.                                       
                  (f)  Marine terminal operator schedules.            
                  (g)  Regulations.                                   
    1708.       Controlled carriers.                                  
                  (a)  Controlled carrier rates.                      
                  (b)  Rate standards.                                
                  (c)  Effective date of rates.                       
                  (d)  Prohibition of rates.                          
                  (e)  Presidential review.                           
                  (f)  Exceptions.                                    
    1709.       Prohibited acts.                                      
                  (a)  In general.                                    
                  (b)  Common carriers.                               
                  (c)  Concerted action.                              
                  (d)  Common carriers, ocean transportation
                        intermediaries, and marine terminal operators.
                  (e)  Joint ventures.                                
    1710.       Complaints, investigations, reports, and reparations. 
                  (a)  Filing of complaints.                          
                  (b)  Satisfaction or investigation of complaints.   
                  (c)  Commission investigations.                     
                  (d)  Conduct of investigation.                      
                  (e)  Undue delays.                                  
                  (f)  Reports.                                       
                  (g)  Reparations.                                   
                  (h)  Injunction.                                    
    1710a.      Foreign laws and practices.                           
                  (a)  Definitions.                                   
                  (b)  Authority to conduct investigations.           
                  (c)  Investigations.                                
                  (d)  Information requests.                          
                  (e)  Action against foreign carriers.               
                  (f)  Actions upon request of Commission.            
                  (g)  Report.                                        
                  (h)  Administration and enforcement of other laws.  
                  (i)  Review of rules, regulations, and final orders
                        of Commission; exclusive procedure.           
    1711.       Subpenas and discovery.                               
                  (a)  In general.                                    
                  (b)  Witness fees.                                  
    1712.       Penalties.                                            
                  (a)  Assessment of penalty.                         
                  (b)  Additional penalties.                          
                  (c)  Assessment procedures.                         
                  (d)  Review of civil penalty.                       
                  (e)  Failure to pay assessment.                     
                  (f)  Limitations.                                   
    1713.       Commission orders.                                    
                  (a)  In general.                                    
                  (b)  Reversal or suspension of orders.              
                  (c)  Enforcement of nonreparation orders.           
                  (d)  Enforcement of reparation orders.              
                  (e)  Statute of limitations.                        
    1714.       Reports.                                              
    1715.       Exemptions.                                           
    1716.       Regulations.                                          
    1718.       Ocean transportation intermediaries.                  
                  (a)  License.                                       
                  (b)  Financial responsibility.                      
                  (c)  Suspension or revocation.                      
                  (d)  Exception.                                     
                  (e)  Compensation of intermediaries by carriers.    
    1719.       Contracts, agreements, and licenses under prior
                 shipping legislation.                                
                  (a)  to (c) Omitted.                                
                  (d)  Effects on certain agreements and contracts.   
                  (e)  Savings provisions.                            

-End-

-CITE-
    46 USC APPENDIX Sec. 1701                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 36 - INTERNATIONAL OCEAN COMMERCE TRANSPORTATION

-HEAD-
    Sec. 1701. Declaration of policy

-STATUTE-
      The purposes of this chapter are - 
        (1) to establish a nondiscriminatory regulatory process for the
      common carriage of goods by water in the foreign commerce of the
      United States with a minimum of government intervention and
      regulatory costs;
        (2) to provide an efficient and economic transportation system
      in the ocean commerce of the United States that is, insofar as
      possible, in harmony with, and responsive to, international
      shipping practices;
        (3) to encourage the development of an economically sound and
      efficient United States-flag liner fleet capable of meeting
      national security needs; and
        (4) to promote the growth and development of United States
      exports through competitive and efficient ocean transportation
      and by placing a greater reliance on the marketplace.

-SOURCE-
    (Pub. L. 98-237, Sec. 2, Mar. 20, 1984, 98 Stat. 67; Pub. L. 105-
    258, title I, Sec. 101, Oct. 14, 1998, 112 Stat. 1902.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This chapter, referred to in text, was in the original "this Act"
    meaning Pub. L. 98-237, Mar. 20, 1984, 98 Stat. 67, as amended,
    known as the Shipping Act of 1984. For complete classification of
    this Act to the Code, see Short Title note below and Tables.

-MISC1-
                                AMENDMENTS                            
      1998 - Par. (4). Pub. L. 105-258 added par. (4).

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Pub. L. 105-258, Sec. 2, Oct. 14, 1998, 112 Stat. 1902, provided
    that: "Except as otherwise expressly provided in this Act [see
    Tables for classification], this Act and the amendments made by
    this Act take effect May 1, 1999."

                              EFFECTIVE DATE                          
      Section 21 of Pub. L. 98-237, which provided that Pub. L. 98-237
    (see Short Title note below) shall become effective 90 days after
    Mar. 20, 1984, except that sections 1716 and 1717 of this Appendix
    shall become effective Mar. 20, 1984, was repealed by Pub. L. 101-
    225, title III, Sec. 307(11), Dec. 12, 1989, 103 Stat. 1925.

                       SHORT TITLE OF 1998 AMENDMENT                   
      Pub. L. 105-258, Sec. 1, Oct. 14, 1998, 112 Stat. 1902, provided
    that: "This Act [see Tables for classification] may be cited as the
    'Ocean Shipping Reform Act of 1998'."

                       SHORT TITLE OF 1992 AMENDMENT                   
      Pub. L. 102-251, title II, Sec. 201(a), Mar. 9, 1992, 106 Stat.
    60, provided that: "This section [amending sections 1709 and 1721
    of this Appendix and enacting provisions set out as notes under
    sections 1709 and 1721 of this Appendix] may be cited as the 'Non-
    Vessel-Operating Common Carrier Act of 1991'."

                       SHORT TITLE OF 1990 AMENDMENT                   
      Pub. L. 101-595, title VII, Sec. 710(a), Nov. 16, 1990, 104 Stat.
    2996, provided that: "This section [enacting section 1721 of this
    Appendix, amending section 1709 of this Appendix, and enacting
    provisions set out as notes under sections 1709 and 1721 of this
    Appendix] may be cited as the 'Non-Vessel-Operating Common Carrier
    Amendments of 1990'."

                       SHORT TITLE OF 1988 AMENDMENT                   
      Pub. L. 100-418, title X, Sec. 10001, Aug. 23, 1988, 102 Stat.
    1570, provided that: "This subtitle [subtitle A (Secs. 10001-10003)
    of title X of Pub. L. 100-418, enacting section 1710a of this
    Appendix, amending section 1122b of this Appendix, and enacting
    provisions set out as a note under section 3302 of Title 46,
    Shipping] may be cited as the 'Foreign Shipping Practices Act of
    1988'."

                                SHORT TITLE                            
      Section 1 of Pub. L. 98-237 provided: "That this Act [enacting
    this chapter, amending sections 801, 812, 814, 815, 816, 817, 819,
    820, 821, 824, 828, 829, 830, 831, 841c, 1122, and 1124 of this
    Appendix, repealing sections 813, 813a, 825, and 841b of this
    Appendix, enacting provisions set out as notes under this section,
    and repealing provisions set out as a note under section 801 of
    this Appendix] may be cited as the 'Shipping Act of 1984'."

-End-

-CITE-
    46 USC APPENDIX Sec. 1702                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 36 - INTERNATIONAL OCEAN COMMERCE TRANSPORTATION

-HEAD-
    Sec. 1702. Definitions

-STATUTE-
      As used in this chapter - 
        (1) "agreement" means an understanding, arrangement, or
      association (written or oral) and any modification or
      cancellation thereof; but the term does not include a maritime
      labor agreement.
        (2) "antitrust laws" means the Act of July 2, 1890 (ch. 647, 26
      Stat. 209), as amended [15 U.S.C. 1 et seq.]; the Act of October
      15, 1914 (ch. 323, 38 Stat. 730), as amended [15 U.S.C. 12 et
      seq.]; the Federal Trade Commission Act (38 Stat. 717), as
      amended [15 U.S.C. 41 et seq.]; sections 73 and 74 of the Act of
      August 27, 1894 (28 Stat. 570), as amended [15 U.S.C. 8 and 9];
      the Act of June 19, 1936 (ch. 592, 49 Stat. 1526), as amended [15
      U.S.C. 13, 13a, 13b, 21a]; the Antitrust Civil Process Act (76
      Stat. 548), as amended [15 U.S.C. 1311 et seq.]; and amendments
      and Acts supplementary thereto.
        (3) "assessment agreement" means an agreement, whether part of
      a collective-bargaining agreement or negotiated separately, to
      the extent that it provides for the funding of collectively
      bargained fringe benefit obligations on other than a uniform man-
      hour basis, regardless of the cargo handled or type of vessel or
      equipment utilized.
        (4) "bulk cargo" means cargo that is loaded and carried in bulk
      without mark or count.
        (5) "Commission" means the Federal Maritime Commission.
        (6) "common carrier" means a person holding itself out to the
      general public to provide transportation by water of passengers
      or cargo between the United States and a foreign country for
      compensation that - 
          (A) assumes responsibility for the transportation from the
        port or point of receipt to the port or point of destination,
        and
          (B) utilizes, for all or part of that transportation, a
        vessel operating on the high seas or the Great Lakes between a
        port in the United States and a port in a foreign country,
        except that the term does not include a common carrier engaged
        in ocean transportation by ferry boat, ocean tramp, or chemical
        parcel-tanker or by vessel when primarily engaged in the
        carriage of perishable agricultural commodities (i) if the
        common carrier and the owner of those commodities are wholly-
        owned, directly or indirectly, by a person primarily engaged
        in the marketing and distribution of those commodities and (ii)
        only with respect to the carriage of those commodities. As used
        in this paragraph, "chemical parcel-tanker" means a vessel
        whose cargo-carrying capability consists of individual cargo
        tanks for bulk chemicals that are a permanent part of the
        vessel, that have segregation capability with piping systems to
        permit simultaneous carriage of several bulk chemical cargoes
        with minimum risk of cross-contamination, and that has a valid
        certificate of fitness under the International Maritime
        Organization Code for the Construction and Equipment of Ships
        Carrying Dangerous Chemicals in Bulk.

        (7) "conference" means an association of ocean common carriers
      permitted, pursuant to an approved or effective agreement, to
      engage in concerted activity and to utilize a common tariff; but
      the term does not include a joint service, consortium, pooling,
      sailing, or transshipment arrangement.
        (8) "controlled carrier" means an ocean common carrier that is,
      or whose operating assets are, directly or indirectly, owned or
      controlled by a government; ownership or control by a government
      shall be deemed to exist with respect to any carrier if - 
          (A) a majority portion of the interest in the carrier is
        owned or controlled in any manner by that government, by any
        agency thereof, or by any public or private person controlled
        by that government; or
          (B) that government has the right to appoint or disapprove
        the appointment of a majority of the directors, the chief
        operating officer, or the chief executive officer of the
        carrier.

        (9) "deferred rebate" means a return by a common carrier of any
      portion of freight money to a shipper as a consideration for that
      shipper giving all, or any portion, of its shipments to that or
      any other common carrier over a fixed period of time, the payment
      of which is deferred beyond the completion of service for which
      it is paid, and is made only if the shipper has agreed to make a
      further shipment or shipments with that or any other common
      carrier.
        (10) "forest products" means forest products including, but not
      limited to lumber in bundles, rough timber, ties, poles, piling,
      laminated beams, bundled siding, bundled plywood, bundled core
      stock or veneers, bundled particle or fiber boards, bundled
      hardwood, wood pulp in rolls, wood pulp in unitized bales, paper
      and paper board in rolls or in pallet or skid-sized sheets.
        (11) "inland division" means the amount paid by a common
      carrier to an inland carrier for the inland portion of through
      transportation offered to the public by the common carrier.
        (12) "inland portion" means the charge to the public by a
      common carrier for the nonocean portion of through
      transportation.
        (13) "loyalty contract" means a contract with an ocean common
      carrier or agreement by which a shipper obtains lower rates by
      committing all or a fixed portion of its cargo to that carrier or
      agreement and the contract provides for a deferred rebate
      arrangement.
        (14) "marine terminal operator" means a person engaged in the
      United States in the business of furnishing wharfage, dock,
      warehouse, or other terminal facilities in connection with a
      common carrier, or in connection with a common carrier and a
      water carrier subject to subchapter II of chapter 135 of title
      49.
        (15) "maritime labor agreement" means a collective-bargaining
      agreement between an employer subject to this chapter, or group
      of such employers, and a labor organization representing
      employees in the maritime or stevedoring industry, or an
      agreement preparatory to such a collective-bargaining agreement
      among members of a multiemployer bargaining group, or an
      agreement specifically implementing provisions of such a
      collective-bargaining agreement or providing for the formation,
      financing, or administration of a multiemployer bargaining group;
      but the term does not include an assessment agreement.
        (16) "ocean common carrier" means a vessel-operating common
      carrier.
        (17) "ocean transportation intermediary" means an ocean freight
      forwarder or a non-vessel-operating common carrier. For purposes
      of this paragraph, the term - 
          (A) "ocean freight forwarder" means a person that - 
            (i) in the United States, dispatches shipments from the
          United States via a common carrier and books or otherwise
          arranges space for those shipments on behalf of shippers; and
            (ii) processes the documentation or performs related
          activities incident to those shipments; and

          (B) "non-vessel-operating common carrier" means a common
        carrier that does not operate the vessels by which the ocean
        transportation is provided, and is a shipper in its
        relationship with an ocean common carrier.

        (18) "person" includes individuals, corporations, partnerships,
      and associations existing under or authorized by the laws of the
      United States or of a foreign country.
        (19) "service contract" means a written contract, other than a
      bill of lading or a receipt, between one or more shippers and an
      individual ocean common carrier or an agreement between or among
      ocean common carriers in which the shipper or shippers makes a
      commitment to provide a certain volume or portion of cargo over a
      fixed time period, and the ocean common carrier or the agreement
      commits to a certain rate or rate schedule and a defined service
      level, such as assured space, transit time, port rotation, or
      similar service features. The contract may also specify
      provisions in the event of nonperformance on the part of any
      party.
        (20) "shipment" means all of the cargo carried under the terms
      of a single bill of lading.
        (21) "shipper" means - 
          (A) a cargo owner;
          (B) the person for whose account the ocean transportation is
        provided;
          (C) the person to whom delivery is to be made;
          (D) a shippers' association; or
          (E) an ocean transportation intermediary, as defined in
        paragraph (17)(B) of this section, that accepts responsibility
        for payment of all charges applicable under the tariff or
        service contract.

        (22) "shippers' association" means a group of shippers that
      consolidates or distributes freight on a nonprofit basis for the
      members of the group in order to secure carload, truckload, or
      other volume rates or service contracts.
        (23) "through rate" means the single amount charged by a common
      carrier in connection with through transportation.
        (24) "through transportation" means continuous transportation
      between origin and destination for which a through rate is
      assessed and which is offered or performed by one or more
      carriers, at least one of which is a common carrier, between a
      United States point or port and a foreign point or port.
        (25) "United States" includes the several States, the District
      of Columbia, the Commonwealth of Puerto Rico, the Commonwealth of
      the Northern Marianas, and all other United States territories
      and possessions.

-SOURCE-
    (Pub. L. 98-237, Sec. 3, Mar. 20, 1984, 98 Stat. 67; Pub. L. 99-
    307, Sec. 11, May 19, 1986, 100 Stat. 447; Pub. L. 105-258, title
    I, Sec. 102, Oct. 14, 1998, 112 Stat. 1902; Pub. L. 105-383, title
    IV, Sec. 424(d), Nov. 13, 1998, 112 Stat. 3441.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Act of July 2, 1890 (ch. 647, 26 Stat. 209), as amended, referred
    to in par. (2), is known as the Sherman Act, which is classified to
    sections 1 to 7 of Title 15, Commerce and Trade. For complete
    classification of this Act to the Code, see Short Title note set
    out under section 1 of Title 15 and Tables.
      Act of October 15, 1914 (ch. 323, 38 Stat. 730), as amended,
    referred to in par. (2), is known as the Clayton Act, which is
    classified generally to sections 12, 13, 14 to 19, 21, and 22 to 27
    of Title 15 and sections 52 and 53 of Title 29, Labor. For further
    details and complete classification of this Act to the Code, see
    References in Text note set out under section 12 of Title 15 and
    Tables.
      The Federal Trade Commission Act, referred to in par. (2), is act
    Sept. 26, 1914, ch. 311, 38 Stat. 717, as amended, which is
    classified generally to subchapter I (Sec. 41 et seq.) of chapter 2
    of Title 15. For complete classification of this Act to the Code,
    see section 58 of Title 15 and Tables.
      Sections 73 and 74 of the Act of August 27, 1894, referred to in
    par. (2), are sections 73 and 74 of act Aug. 27, 1894, ch. 349, 28
    Stat. 570. Sections 73 to 77 of such Act are known as the Wilson
    Tariff Act. Sections 73 to 76 enacted sections 8 to 11 of Title 15.
    Section 77 was not classified to the Code. For complete
    classification of this Act to the Code, see Short Title note under
    section 8 of Title 15 and Tables.
      Act of June 19, 1936 (ch. 592, 49 Stat. 1526), as amended,
    referred to in par. (2), is popularly known as the Robinson-Patman
    Antidiscrimination Act and also as the Robinson-Patman Price
    Discrimination Act, which enacted sections 13a, 13b, and 21a of
    Title 15 and amended section 13 of Title 15. For complete
    classification of this Act to the Code, see Short Title note set
    out under section 13 of Title 15 and Tables.
      The Antitrust Civil Process Act, referred to in par. (2), is Pub.
    L. 87-664, Sept. 19, 1962, 76 Stat. 548, as amended, which is
    classified generally to chapter 34 (Sec. 1311 et seq.) of Title 15.
    For complete classification of this Act to the Code, see Short
    Title note set out under section 1311 of Title 15 and Tables.

-MISC1-
                                AMENDMENTS                            
      1998 - Par. (6)(B). Pub. L. 105-383, in first sentence,
    substituted "parcel-tanker or by vessel when primarily engaged in
    the carriage of perishable agricultural commodities (i) if the
    common carrier and the owner of those commodities are wholly-owned,
    directly or indirectly, by a person primarily engaged in the
    marketing and distribution of those commodities and (ii) only with
    respect to the carriage of those commodities." for "parcel-tanker."
      Par. (8). Pub. L. 105-258, Sec. 102(1), substituted "a
    government;" for "the government under whose registry the vessels
    of the carrier operate;" in introductory provisions.
      Par. (9). Pub. L. 105-258, Sec. 102(2), added par. (9) and struck
    out former par. (9) which read as follows: " 'deferred rebate'
    means a return by a common carrier of any portion of the freight
    money to a shipper as a consideration for that shipper giving all,
    or any portion, of its shipments to that or any other common
    carrier, or for any other purpose, the payment of which is deferred
    beyond the completion of the service for which it is paid, and is
    made only if, during both the period for which computed and the
    period of deferment, the shipper has complied with the terms of the
    rebate agreement or arrangement."
      Par. (10). Pub. L. 105-258, Sec. 102(5), substituted "paper and
    paper board in rolls or in pallet or skid-sized sheets." for "paper
    board in rolls, and paper in rolls."
      Pub. L. 105-258, Sec. 102(4), struck out "in an unfinished or
    semifinished state that require special handling moving in lot
    sizes too large for a container," after "means forest products".
      Pub. L. 105-258, Sec. 102(3), redesignated par. (11) as (10) and
    struck out former par. (10) which read as follows: " 'fighting
    ship' means a vessel used in a particular trade by an ocean common
    carrier or group of such carriers for the purpose of excluding,
    preventing, or reducing competition by driving another ocean common
    carrier out of that trade."
      Pars. (11), (12). Pub. L. 105-258, Sec. 102(3), redesignated
    pars. (12) and (13) as (11) and (12), respectively. Former par.
    (11) redesignated (10).
      Par. (13). Pub. L. 105-258, Sec. 102(7), substituted "agreement
    and the contract provides for a deferred rebate arrangement." for
    "conference."
      Pub. L. 105-258, Sec. 102(6), substituted "agreement" for
    "conference, other than a service contract or contract based upon
    time-volume rates,".
      Pub. L. 105-258, Sec. 102(3), redesignated par. (14) as (13).
    Former par. (13) redesignated (12).
      Par. (14). Pub. L. 105-258, Sec. 102(3), (8), redesignated par.
    (15) as (14) and substituted "carrier, or in connection with a
    common carrier and a water carrier subject to subchapter II of
    chapter 135 of title 49." for "carrier." Former par. (14)
    redesignated (13).
      Par. (15). Pub. L. 105-258, Sec. 102(3), redesignated former par.
    (16) as (15). Former par. (15) redesignated (14).
      Par. (16). Pub. L. 105-258, Sec. 102(9), redesignated par. (17)
    as (16) and struck out former par. (16) which read as follows: "
    'non-vessel-operating common carrier' means a common carrier that
    does not operate the vessels by which the ocean transportation is
    provided, and is a shipper in its relationship with an ocean common
    carrier."
      Pub. L. 105-258, Sec. 102(3), redesignated par. (17) as (16).
    Former par. (16) redesignated (15).
      Par. (17). Pub. L. 105-258, Sec. 102(10), added par. (17) and
    struck out former par. (17) which read as follows: " 'ocean freight
    forwarder' means a person in the United States that - 
        "(A) dispatches shipments from the United States via common
      carriers and books or otherwise arranges space for those
      shipments on behalf of shippers; and
        "(B) processes the documentation or performs related activities
      incident to those shipments."
      Pub. L. 105-258, Sec. 102(9), redesignated par. (18) as (17).
    Former par. (17) redesignated (16).
      Pub. L. 105-258, Sec. 102(3), redesignated par. (18) as (17).
    Former par. (17) redesignated (16).
      Par. (18). Pub. L. 105-258, Sec. 102(9), redesignated par. (19)
    as (18). Former par. (18) redesignated (17).
      Pub. L. 105-258, Sec. 102(3), redesignated par. (19) as (18).
    Former par. (18) redesignated (17).
      Par. (19). Pub. L. 105-258, Sec. 102(11), added par. (19) and
    struck out former par. (19) which read as follows: " 'service
    contract' means a contract between a shipper and an ocean common
    carrier or conference in which the shipper makes a commitment to
    provide a certain minimum quantity of cargo over a fixed time
    period, and the ocean common carrier or conference commits to a
    certain rate or rate schedule as well as a defined service level -
    such as, assured space, transit time, port rotation, or similar
    service features; the contract may also specify provisions in the
    event of nonperformance on the part of either party."
      Pub. L. 105-258, Sec. 102(9), redesignated par. (20) as (19).
    Former par. (19) redesignated (18).
      Pub. L. 105-258, Sec. 102(3), redesignated par. (20) as (19).
    Former par. (19) redesignated (18).
      Par. (20). Pub. L. 105-258, Sec. 102(9), redesignated par. (21)
    as (20). Former par. (20) redesignated (19).
      Pub. L. 105-258, Sec. 102(3), redesignated par. (21) as (20).
    Former par. (20) redesignated (19).
      Par. (21). Pub. L. 105-258, Sec. 102(12), added par. (21) and
    struck out former par. (21) which read as follows: " 'shipper'
    means an owner or person for whose account the ocean transportation
    of cargo is provided or the person to whom delivery is to be made."
      Pub. L. 105-258, Sec. 102(9), redesignated par. (22) as (21).
    Former par. (21) redesignated (20).
      Pub. L. 105-258, Sec. 102(3), redesignated par. (22) as (21).
    Former par. (21) redesignated (20).
      Pars. (22) to (27). Pub. L. 105-258, Sec. 102(3), (9),
    redesignated pars. (24) to (27) as (22) to (25), respectively.
    Former pars. (22) and (23) redesignated (20) and (21),
    respectively.
      1986 - Par. (6)(B). Pub. L. 99-307, Sec. 11(1), inserted
    provision that "common carrier" not include common carrier engaged
    in ocean transportation by ferry boat, ocean tramp, or chemical
    parcel-tanker, and defined "chemical parcel-tanker".
      Par. (18). Pub. L. 99-307, Sec. 11(2), struck out "; but the term
    does not include one engaged in ocean transportation by ferry boat
    or ocean tramp" after "common carrier".

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Amendment by Pub. L. 105-258 effective May 1, 1999, see section 2
    of Pub. L. 105-258, set out as a note under section 1701 of this
    Appendix.

-End-

-CITE-
    46 USC APPENDIX Sec. 1703                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 36 - INTERNATIONAL OCEAN COMMERCE TRANSPORTATION

-HEAD-
    Sec. 1703. Agreements within scope of chapter

-STATUTE-
    (a) Ocean common carriers
      This chapter applies to agreements by or among ocean common
    carriers to - 
        (1) discuss, fix, or regulate transportation rates, including
      through rates, cargo space accommodations, and other conditions
      of service;
        (2) pool or apportion traffic, revenues, earnings, or losses;
        (3) allot ports or restrict or otherwise regulate the number
      and character of sailings between ports;
        (4) limit or regulate the volume or character of cargo or
      passenger traffic to be carried;
        (5) engage in exclusive, preferential, or cooperative working
      arrangements among themselves or with one or more marine terminal
      operators;
        (6) control, regulate, or prevent competition in international
      ocean transportation; or
        (7) discuss and agree on any matter related to service
      contracts.
    (b) Marine terminal operators
      This chapter applies to agreements among marine terminal
    operators and among one or more marine terminal operators and one
    or more ocean common carriers to - 
        (1) discuss, fix, or regulate rates or other conditions of
      service; or
        (2) engage in exclusive, preferential, or cooperative working
      arrangements, to the extent that such agreements involve ocean
      transportation in the foreign commerce of the United States.
    (c) Acquisitions
      This chapter does not apply to an acquisition by any person,
    directly or indirectly, of any voting security or assets of any
    other person.

-SOURCE-
    (Pub. L. 98-237, Sec. 4, Mar. 20, 1984, 98 Stat. 70; Pub. L. 105-
    258, title I, Sec. 103, Oct. 14, 1998, 112 Stat. 1904.)

-MISC1-
                                AMENDMENTS                            
      1998 - Subsec. (a)(5). Pub. L. 105-258, Sec. 103(a)(1),
    substituted "operators;" for "operators or non-vessel-operating
    common carriers;".
      Subsec. (a)(6). Pub. L. 105-258, Sec. 103(a)(2), substituted "or"
    for "and" at end.
      Subsec. (a)(7). Pub. L. 105-258, Sec. 103(a)(3), added par. (7)
    and struck out former par. (7) which read as follows: "regulate or
    prohibit their use of service contracts."
      Subsec. (b). Pub. L. 105-258, Sec. 103(b)(1), struck out "(to the
    extent the agreements involve ocean transportation in the foreign
    commerce of the United States)" after "agreements" in introductory
    provisions.
      Subsec. (b)(1). Pub. L. 105-258, Sec. 103(b)(2), substituted "or"
    for "and" at end.
      Subsec. (b)(2). Pub. L. 105-258, Sec. 103(b)(3), substituted
    "arrangements, to the extent that such agreements involve ocean
    transportation in the foreign commerce of the United States." for
    "arrangements."

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Amendment by Pub. L. 105-258 effective May 1, 1999, see section 2
    of Pub. L. 105-258, set out as a note under section 1701 of this
    Appendix.

-End-

-CITE-
    46 USC APPENDIX Sec. 1704                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 36 - INTERNATIONAL OCEAN COMMERCE TRANSPORTATION

-HEAD-
    Sec. 1704. Agreements

-STATUTE-
    (a) Filing requirements
      A true copy of every agreement entered into with respect to an
    activity described in section 1703(a) or (b) of this Appendix shall
    be filed with the Commission, except agreements related to
    transportation to be performed within or between foreign countries
    and agreements among common carriers to establish, operate, or
    maintain a marine terminal in the United States. In the case of an
    oral agreement, a complete memorandum specifying in detail the
    substance of the agreement shall be filed. The Commission may by
    regulation prescribe the form and manner in which an agreement
    shall be filed and the additional information and documents
    necessary to evaluate the agreement.
    (b) Conference agreements
      Each conference agreement must - 
        (1) state its purpose;
        (2) provide reasonable and equal terms and conditions for
      admission and readmission to conference membership for any ocean
      common carrier willing to serve the particular trade or route;
        (3) permit any member to withdraw from conference membership
      upon reasonable notice without penalty;
        (4) at the request of any member, require an independent
      neutral body to police fully the obligations of the conference
      and its members;
        (5) prohibit the conference from engaging in conduct prohibited
      by section 1709(c)(1) or (3) of this Appendix;
        (6) provide for a consultation process designed to promote - 
          (A) commercial resolution of disputes, and
          (B) cooperation with shippers in preventing and eliminating
        malpractices;

        (7) establish procedures for promptly and fairly considering
      shippers' requests and complaints; and
        (8) provide that any member of the conference may take
      independent action on any rate or service item upon not more than
      5 calendar days' notice to the conference and that, except for
      exempt commodities not published in the conference tariff, the
      conference will include the new rate or service item in its
      tariff for use by that member, effective no later than 5 calendar
      days after receipt of the notice, and by any other member that
      notifies the conference that it elects to adopt the independent
      rate or service item on or after its effective date, in lieu of
      the existing conference tariff provision for that rate or service
      item;
    (c) Ocean common carrier agreements
      An ocean common carrier agreement may not - 
        (1) prohibit or restrict a member or members of the agreement
      from engaging in negotiations for service contracts with 1 or
      more shippers;
        (2) require a member or members of the agreement to disclose a
      negotiation on a service contract, or the terms and conditions of
      a service contract, other than those terms or conditions required
      to be published under section 1707(c)(3) of this Appendix; or
        (3) adopt mandatory rules or requirements affecting the right
      of an agreement member or agreement members to negotiate and
      enter into service contracts.

    An agreement may provide authority to adopt voluntary guidelines
    relating to the terms and procedures of an agreement member's or
    agreement members' service contracts if the guidelines explicitly
    state the right of members of the agreement not to follow the
    guidelines. These guidelines shall be confidentially submitted to
    the Commission.
    (d) Interconference agreements
      Each agreement between carriers not members of the same
    conference must provide the right of independent action for each
    carrier. Each agreement between conferences must provide the right
    of independent action for each conference.
    (e) Assessment agreements
      Assessment agreements shall be filed with the Commission and
    become effective on filing. The Commission shall thereafter, upon
    complaint filed within 2 years of the date of the agreement,
    disapprove, cancel, or modify any such agreement, or charge or
    assessment pursuant thereto, that it finds, after notice and
    hearing, to be unjustly discriminatory or unfair as between
    carriers, shippers, or ports. The Commission shall issue its final
    decision in any such proceeding within 1 year of the date of filing
    of the complaint. To the extent that an assessment or charge is
    found in the proceeding to be unjustly discriminatory or unfair as
    between carriers, shippers, or ports, the Commission shall remedy
    the unjust discrimination or unfairness for the period of time
    between the filing of the complaint and the final decision by means
    of assessment adjustments. These adjustments shall be implemented
    by prospective credits or debits to future assessments or charges,
    except in the case of a complainant who has ceased activities
    subject to the assessment or charge, in which case reparation may
    be awarded. Except for this subsection and section 1706(a) of this
    Appendix, this chapter does not apply to assessment agreements.
    (f) Maritime labor agreements
      This chapter does not apply to maritime labor agreements. This
    subsection does not exempt from this chapter any rates, charges,
    regulations, or practices of a common carrier that are required to
    be set forth in a tariff or are essential terms of a service
    contract, whether or not those rates, charges, regulations, or
    practices arise out of, or are otherwise related to, a maritime
    labor agreement.
    (g) Vessel sharing agreements
      An ocean common carrier that is the owner, operator, or bareboat,
    time, or slot charterer of a United States-flag liner vessel
    documented pursuant to sections (!1) 12102(a) or (d) of title 46 is
    authorized to agree with an ocean common carrier that is not the
    owner, operator or bareboat charterer for at least 1 year of United
    States-flag liner vessels which are eligible to be included in the
    Maritime Security Fleet Program and are enrolled in an Emergency
    Preparedness Program pursuant to subtitle B of title VI of the
    Merchant Marine Act, 1936 (46 U.S.C. App. 1187 et seq.), to which
    it charters or subcharters the United States-flag vessel or space
    on the United States-flag vessel that such charterer or
    subcharterer may not use or make available space on the vessel for
    the carriage of cargo reserved by law for United States-flag
    vessels.

-SOURCE-
    (Pub. L. 98-237, Sec. 5, Mar. 20, 1984, 98 Stat. 70; Pub. L. 98-
    595, Sec. 3(b)(1), Oct. 30, 1984, 98 Stat. 3132; Pub. L. 104-88,
    title III, Sec. 335(c)(2), Dec. 29, 1995, 109 Stat. 954; Pub. L.
    105-258, title I, Sec. 104, Oct. 14, 1998, 112 Stat. 1904; Pub. L.
    105-383, title IV, Sec. 424(a), Nov. 13, 1998, 112 Stat. 3440.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Merchant Marine Act, 1936, referred to in subsec. (g), is act
    June 29, 1936, ch. 858, 49 Stat. 1985, as amended. Subtitle B of
    title VI of the Act is classified generally to part B (Sec. 1187 et
    seq.) of subchapter VI of chapter 27 of this Appendix. For complete
    classification of this Act to the Code, see section 1245 of this
    Appendix and Tables.

-MISC1-
                                AMENDMENTS                            
      1998 - Subsec. (b)(8). Pub. L. 105-258, Sec. 104(a)(1), added
    par. (8) and struck out former par. (8) which read as follows:
    "provide that any member of the conference may take independent
    action on any rate or service item required to be filed in a tariff
    under section 1707(a) of this Appendix upon not more than 10
    calendar days' notice to the conference and that the conference
    will include the new rate or service item in its tariff for use by
    that member, effective no later than 10 calendar days after receipt
    of the notice, and by any other member that notifies the conference
    that it elects to adopt the independent rate or service item on or
    after its effective date, in lieu of the existing conference tariff
    provision for that rate or service item."
      Subsec. (c). Pub. L. 105-258, Sec. 104(a)(2), (3), added subsec.
    (c) and redesignated former subsec. (c) as (d).
      Subsec. (d). Pub. L. 105-258, Sec. 104(a)(2), redesignated former
    subsec. (c) as (d). Former subsec. (d) redesignated (e).
      Subsec. (e). Pub. L. 105-258, Sec. 104(a)(2), (b)(1),
    redesignated former subsec. (d) as (e) and substituted "this
    chapter does" for "this chapter, the Shipping Act, 1916, and the
    Intercoastal Shipping Act, 1933, do". Former subsec. (e)
    redesignated (f).
      Subsec. (f). Pub. L. 105-258, Sec. 104(b)(2)(C), inserted "or are
    essential terms of a service contract" after "tariff".
      Pub. L. 105-258, Sec. 104(b)(2)(B), which directed amendment of
    subsec. (f) by striking out "or the Shipping Act, 1916," was
    executed by striking out "or the Shipping Act, 1916" before "any
    rates, charges", to reflect the probable intent of Congress.
      Pub. L. 105-258, Sec. 104(b)(2)(A), which directed amendment of
    subsec. (f) by substituting "does" for "and the Shipping Act, 1916,
    do", was executed by making the substitution for "and the Shipping
    Act, 1916 do" after "This chapter", to reflect the probable intent
    of Congress.
      Pub. L. 105-258, Sec. 104(a)(2), redesignated subsec. (e) as (f).
      Subsec. (g). Pub. L. 105-383 added subsec. (g).
      1995 - Subsec. (e). Pub. L. 104-88 substituted "This chapter and
    the Shipping Act 1916" for "This chapter, the Shipping Act, 1916
    [46 App. U.S.C. 801 et seq.], and the Intercoastal Shipping Act,
    1933," and "this chapter or the Shipping Act, 1916" for "this
    chapter, the Shipping Act, 1916, or the Intercoastal Shipping Act,
    1933,".
      1984 - Subsec. (a). Pub. L. 98-595 substituted "section 1703(a)
    or (b) of this Appendix" for "section 1703 of this Appendix".

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Amendment by Pub. L. 105-258 effective May 1, 1999, see section 2
    of Pub. L. 105-258, set out as a note under section 1701 of this
    Appendix.

                     EFFECTIVE DATE OF 1995 AMENDMENT                 
      Amendment by Pub. L. 104-88 effective Jan. 1, 1996, see section 2
    of Pub. L. 104-88, set out as an Effective Date note under section
    701 of Title 49, Transportation.

                   AUTHORITY OR EFFECTIVENESS OF ORDERS               
      Pub. L. 105-383, title IV, Sec. 424(c), Nov. 13, 1998, 112 Stat.
    3441, provided that: "Nothing in this section [amending this
    section and sections 1702 and 1709 of this Appendix] shall affect
    or in any way diminish the authority or effectiveness of orders
    issued by the Maritime Administration pursuant to sections 9 and 41
    of the Shipping Act, 1916 (46 U.S.C. App. 808 and 839)."

-FOOTNOTE-
    (!1) So in original. Probably should be "section".

-End-

-CITE-
    46 USC APPENDIX Sec. 1705                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 36 - INTERNATIONAL OCEAN COMMERCE TRANSPORTATION

-HEAD-
    Sec. 1705. Action on agreements

-STATUTE-
    (a) Notice
      Within 7 days after an agreement is filed, the Commission shall
    transmit a notice of its filing to the Federal Register for
    publication.
    (b) Review standard
      The Commission shall reject any agreement filed under section
    1704(a) of this Appendix that, after preliminary review, it finds
    does not meet the requirements of section 1704 of this Appendix.
    The Commission shall notify in writing the person filing the
    agreement of the reason for rejection of the agreement.
    (c) Review and effective date
      Unless rejected by the Commission under subsection (b) of this
    section, agreements, other than assessment agreements, shall become
    effective - 
        (1) on the 45th day after filing, or on the 30th day after
      notice of the filing is published in the Federal Register,
      whichever day is later; or
        (2) if additional information or documentary material is
      requested under subsection (d) of this section, on the 45th day
      after the Commission receives - 
          (A) all the additional information and documentary material
        requested; or
          (B) if the request is not fully complied with, the
        information and documentary material submitted and a statement
        of the reasons for noncompliance with the request. The period
        specified in paragraph (2) may be extended only by the United
        States District Court for the District of Columbia upon an
        application of the Commission under subsection (i) of this
        section.
    (d) Additional information
      Before the expiration of the period specified in subsection
    (c)(1) of this section, the Commission may request from the person
    filing the agreement any additional information and documentary
    material it deems necessary to make the determinations required by
    this section.
    (e) Request for expedited approval
      The Commission may, upon request of the filing party, shorten the
    review period specified in subsection (c) of this section, but in
    no event to a date less than 14 days after notice of the filing of
    the agreement is published in the Federal Register.
    (f) Term of agreements
      The Commission may not limit the effectiveness of an agreement to
    a fixed term.
    (g) Substantially anticompetitive agreements
      If, at any time after the filing or effective date of an
    agreement, the Commission determines that the agreement is likely,
    by a reduction in competition, to produce an unreasonable reduction
    in transportation service or an unreasonable increase in
    transportation cost, it may, after notice to the person filing the
    agreement, seek appropriate injunctive relief under subsection (h)
    of this section.
    (h) Injunctive relief
      The Commission may, upon making the determination specified in
    subsection (g) of this section, bring suit in the United States
    District Court for the District of Columbia to enjoin operation of
    the agreement. The court may issue a temporary restraining order or
    preliminary injunction and, upon a showing that the agreement is
    likely, by a reduction in competition, to produce an unreasonable
    reduction in transportation service or an unreasonable increase in
    transportation cost, may enter a permanent injunction. In a suit
    under this subsection, the burden of proof is on the Commission.
    The court may not allow a third party to intervene with respect to
    a claim under this subsection.
    (i) Compliance with informational needs
      If a person filing an agreement, or an officer, director,
    partner, agent, or employee thereof, fails substantially to comply
    with a request for the submission of additional information or
    documentary material within the period specified in subsection (c)
    of this section, the United States District Court for the District
    of Columbia, at the request of the Commission - 
        (1) may order compliance;
        (2) shall extend the period specified in subsection (c)(2) of
      this section until there has been substantial compliance; and
        (3) may grant such other equitable relief as the court in its
      discretion determines necessary or appropriate.
    (j) Nondisclosure of submitted material
      Except for an agreement filed under section 1704 of this
    Appendix, information and documentary material filed with the
    Commission under section 1704 of this Appendix or this section is
    exempt from disclosure under section 552 of title 5 and may not be
    made public except as may be relevant to an administrative or
    judicial action or proceeding. This section does not prevent
    disclosure to either body of Congress or to a duly authorized
    committee or subcommittee of Congress.
    (k) Representation
      Upon notice to the Attorney General, the Commission may represent
    itself in district court proceedings under subsections (h) and (i)
    of this section and section 1710(h) of this Appendix. With the
    approval of the Attorney General, the Commission may represent
    itself in proceedings in the United States Courts of Appeal under
    subsections (h) and (i) of this section and section 1710(h) of this
    Appendix.

-SOURCE-
    (Pub. L. 98-237, Sec. 6, Mar. 20, 1984, 98 Stat. 72.)

-End-

-CITE-
    46 USC APPENDIX Sec. 1706                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 36 - INTERNATIONAL OCEAN COMMERCE TRANSPORTATION

-HEAD-
    Sec. 1706. Exemption from antitrust laws

-STATUTE-
    (a) In general
      The antitrust laws do not apply to - 
        (1) any agreement that has been filed under section 1704 of
      this Appendix and is effective under section 1704(d) (!1) or
      section 1705 of this Appendix or is exempt under section 1715 of
      this Appendix from any requirement of this chapter;

        (2) any activity or agreement within the scope of this chapter,
      whether permitted under or prohibited by this chapter, undertaken
      or entered into with a reasonable basis to conclude that (A) it
      is pursuant to an agreement on file with the Commission and in
      effect when the activity took place, or (B) it is exempt under
      section 1715 of this Appendix from any filing or publication
      requirement of this chapter;
        (3) any agreement or activity that relates to transportation
      services within or between foreign countries, whether or not via
      the United States, unless that agreement or activity has a
      direct, substantial, and reasonably foreseeable effect on the
      commerce of the United States;
        (4) any agreement or activity concerning the foreign inland
      segment of through transportation that is part of transportation
      provided in a United States import or export trade;
        (5) any agreement or activity to provide or furnish wharfage,
      dock, warehouse, or other terminal facilities outside the United
      States; or
        (6) subject to section 1719(e)(2) of this Appendix, any
      agreement, modification, or cancellation approved by the
      Commission before the effective date of this chapter under
      section 15 (!1) of the Shipping Act, 1916, or permitted under
      section 14b (!1) thereof, and any properly published tariff,
      rate, fare, or charge, classification, rule, or regulation
      explanatory thereof implementing that argeement,(!2)
      modification, or cancellation.

    (b) Exceptions
      This chapter does not extend antitrust immunity - 
        (1) to any agreement with or among air carriers, rail carriers,
      motor carriers, or common carriers by water not subject to this
      chapter with respect to transportation within the United States;
        (2) to any discussion or agreement among common carriers that
      are subject to this chapter regarding the inland divisions (as
      opposed to the inland portions) of through rates within the
      United States;
        (3) to any agreement among common carriers subject to this
      chapter to establish, operate, or maintain a marine terminal in
      the United States; or
        (4) to any loyalty contract.
    (c) Limitations
      (1) Any determination by an agency or court that results in the
    denial or removal of the immunity to the antitrust laws set forth
    in subsection (a) of this section shall not remove or alter the
    antitrust immunity for the period before the determination.
      (2) No person may recover damages under section 4 of the Clayton
    Act (15 U.S.C. 15), or obtain injunctive relief under section 16 of
    that Act (15 U.S.C. 26), for conduct prohibited by this chapter.

-SOURCE-
    (Pub. L. 98-237, Sec. 7, Mar. 20, 1984, 98 Stat. 73; Pub. L. 105-
    258, title I, Sec. 105, Oct. 14, 1998, 112 Stat. 1905.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 1704(d) of this Appendix, referred to in subsec. (a)(1),
    was redesignated section 1704(e) of this Appendix by Pub. L. 105-
    258, title I, Sec. 104(a)(2), Oct. 14, 1998, 112 Stat. 1904.
      For the effective date of this chapter, referred to in subsec.
    (a)(6), as 90 days after Mar. 20, 1984, see section 21 of Pub. L.
    98-237, formerly set out as an Effective Date note under section
    1701 of this Appendix.
      Section 15 of the Shipping Act, 1916, referred to in subsec.
    (a)(6), which was classified to section 814 of this Appendix, was
    repealed by Pub. L. 104-88, title III, Sec. 335(b)(3), Dec. 29,
    1996, 109 Stat. 954.
      Section 14b of the Shipping Act, 1916, referred to in subsec.
    (a)(6), which was classified to section 813a of former Title 46,
    Shipping, was repealed by Pub. L. 98-237, Sec. 20(a), Mar. 20,
    1984, 98 Stat. 88.

-MISC1-
                                AMENDMENTS                            
      1998 - Subsec. (a)(2). Pub. L. 105-258, Sec. 105(1), inserted "or
    publication" after "filing".
      Subsec. (b)(4). Pub. L. 105-258, Sec. 105(2)-(4), added par. (4).

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Amendment by Pub. L. 105-258 effective May 1, 1999, see section 2
    of Pub. L. 105-258, set out as a note under section 1701 of this
    Appendix.

-FOOTNOTE-
    (!1) See References in Text note below.

    (!2) So in original. Probably should be "agreement,".

-End-

-CITE-
    46 USC APPENDIX Sec. 1707                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 36 - INTERNATIONAL OCEAN COMMERCE TRANSPORTATION

-HEAD-
    Sec. 1707. Tariffs

-STATUTE-
    (a) In general
      (1) Except with regard to bulk cargo, forest products, recycled
    metal scrap, new assembled motor vehicles, waste paper, and paper
    waste, each common carrier and conference shall keep open to public
    inspection in an automated tariff system, tariffs showing all its
    rates, charges, classifications, rules, and practices between all
    points or ports on its own route and on any through transportation
    route that has been established. However, common carriers shall not
    be required to state separately or otherwise reveal in tariffs the
    inland divisions of a through rate. Tariffs shall - 
        (A) state the places between which cargo will be carried;
        (B) list each classification of cargo in use;
        (C) state the level of ocean transportation intermediary, as
      defined in section 1702(17)(A) of this Appendix, compensation, if
      any, by a carrier or conference;
        (D) state separately each terminal or other charge, privilege,
      or facility under the control of the carrier or conference and
      any rules or regulations that in any way change, affect, or
      determine any part or the aggregate of the rates or charges;
        (E) include sample copies of any bill of lading, contract of
      affreightment, or other document evidencing the transportation
      agreement; and
        (F) include copies of any loyalty contract, omitting the
      shipper's name.

      (2) Tariffs shall be made available electronically to any person,
    without time, quantity, or other limitation, through appropriate
    access from remote locations, and a reasonable charge may be
    assessed for such access. No charge may be assessed a Federal
    agency for such access.
    (b) Time-volume rates
      Rates shown in tariffs filed under subsection (a) of this section
    may vary with the volume of cargo offered over a specified period
    of time.
    (c) Service contracts
      (1) In general
        An individual ocean common carrier or an agreement between or
      among ocean common carriers may enter into a service contract
      with one or more shippers subject to the requirements of this
      chapter. The exclusive remedy for a breach of a contract entered
      into under this subsection shall be an action in an appropriate
      court, unless the parties otherwise agree. In no case may the
      contract dispute resolution forum be controlled by or in any way
      affiliated with a controlled carrier as defined in section
      1702(8) of this Appendix, or by the government which owns or
      controls the carrier.
      (2) Filing requirements
        Except for service contracts dealing with bulk cargo, forest
      products, recycled metal scrap, new assembled motor vehicles,
      waste paper, or paper waste, each contract entered into under
      this subsection by an individual ocean common carrier or an
      agreement shall be filed confidentially with the Commission. Each
      service contract shall include the following essential terms - 
          (A) the origin and destination port ranges;
          (B) the origin and destination geographic areas in the case
        of through intermodal movements;
          (C) the commodity or commodities involved;
          (D) the minimum volume or portion;
          (E) the line-haul rate;
          (F) the duration;
          (G) service commitments; and
          (H) the liquidated damages for nonperformance, if any.
      (3) Publication of certain terms
        When a service contract is filed confidentially with the
      Commission, a concise statement of the essential terms described
      in paragraphs 2(A),(!1) (C), (D), and (F) shall be published and
      made available to the general public in tariff format.

      (4) Disclosure of certain terms
        (A) An ocean common carrier, which is a party to or is subject
      to the provisions of a collective bargaining agreement with a
      labor organization, shall, in response to a written request by
      such labor organization, state whether it is responsible for the
      following work at dock areas and within port areas in the United
      States with respect to cargo transportation under a service
      contract described in paragraph (1) of this subsection - 
          (i) the movement of the shipper's cargo on a dock area or
        within the port area or to or from railroad cars on a dock area
        or within the port area;
          (ii) the assignment of intraport carriage of the shipper's
        cargo between areas on a dock or within the port area;
          (iii) the assignment of the carriage of the shipper's cargo
        between a container yard on a dock area or within the port area
        and a rail yard adjacent to such container yard; and
          (iv) the assignment of container freight station work and
        container maintenance and repair work performed at a dock area
        or within the port area.

        (B) The common carrier shall provide the information described
      in subparagraph (A) of this paragraph to the requesting labor
      organization within a reasonable period of time.
        (C) This paragraph requires the disclosure of information by an
      ocean common carrier only if there exists an applicable and
      otherwise lawful collective bargaining agreement which pertains
      to that carrier. No disclosure made by an ocean common carrier
      shall be deemed to be an admission or agreement that any work is
      covered by a collective bargaining agreement. Any dispute
      regarding whether any work is covered by a collective bargaining
      agreement and the responsibility of the ocean common carrier
      under such agreement shall be resolved solely in accordance with
      the dispute resolution procedures contained in the collective
      bargaining agreement and the National Labor Relations Act [29
      U.S.C. 151 et seq.], and without reference to this paragraph.
        (D) Nothing in this paragraph shall have any effect on the
      lawfulness or unlawfulness under this chapter, the National Labor
      Relations Act [29 U.S.C. 151 et seq.], the Taft-Hartley Act [29
      U.S.C. 141 et seq.], the Federal Trade Commission Act [15 U.S.C.
      41 et seq.], the antitrust laws, or any other Federal or State
      law, or any revisions or amendments thereto, of any collective
      bargaining agreement or element thereof, including any element
      that constitutes an essential term of a service contract under
      this subsection.
        (E) For purposes of this paragraph the terms "dock area" and
      "within the port area" shall have the same meaning and scope as
      in the applicable collective bargaining agreement between the
      requesting labor organization and the carrier.
    (d) Tariff rates
      No new or initial rate or change in an existing rate that results
    in an increased cost to the shipper may become effective earlier
    than 30 calendar days after publication. The Commission, for good
    cause, may allow such a new or initial rate or change to become
    effective in less than 30 calendar days. A change in an existing
    rate that results in a decreased cost to the shipper may become
    effective upon publication.
    (e) Refunds
      The Commission may, upon application of a carrier or shipper,
    permit a common carrier or conference to refund a portion of
    freight charges collected from a shipper or to waive the collection
    of a portion of the charges from a shipper if - 
        (1) there is an error in a,(!2) in failing to publish a new
      tariff, or an error in quoting a tariff, and the refund will not
      result in discrimination among shippers, ports, or carriers;

        (2) the common carrier or conference has, prior to filing an
      application for authority to make a refund for an error in a
      tariff or a failure to publish a tariff, published a new tariff
      that sets forth the rate on which the refund or waiver would be
      based; and
        (3) the application for refund or waiver is filed with the
      Commission within 180 days from the date of shipment.
    (f) Marine terminal operator schedules
      A marine terminal operator may make available to the public,
    subject to section 1709(d) of this Appendix, a schedule of rates,
    regulations, and practices, including limitations of liability for
    cargo loss or damage, pertaining to receiving, delivering,
    handling, or storing property at its marine terminal. Any such
    schedule made available to the public shall be enforceable by an
    appropriate court as an implied contract without proof of actual
    knowledge of its provisions.
    (g) Regulations
      The Commission shall by regulation prescribe the requirements for
    the accessibility and accuracy of automated tariff systems
    established under this section. The Commission may, after periodic
    review, prohibit the use of any automated tariff system that fails
    to meet the requirements established under this section. The
    Commission may not require a common carrier to provide a remote
    terminal for access under subsection (a)(2) of this section. The
    Commission shall by regulation prescribe the form and manner in
    which marine terminal operator schedules authorized by this section
    shall be published.

-SOURCE-
    (Pub. L. 98-237, Sec. 8, Mar. 20, 1984, 98 Stat. 74; Pub. L. 105-
    258, title I, Sec. 106, Oct. 14, 1998, 112 Stat. 1905.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The National Labor Relations Act, referred to in subsec.
    (c)(4)(C), (D), is act July 5, 1935, ch. 372, 49 Stat. 449, as
    amended, which is classified generally to subchapter II (Sec. 151
    et seq.) of chapter 7 of Title 29, Labor. For complete
    classification of this Act to the Code, see section 167 of Title 29
    and Tables.
      The Taft-Hartley Act, also known as the Labor Management
    Relations Act, 1947, referred to in subsec. (c)(4)(D), is act June
    23, 1947, ch. 120, 61 Stat. 136, as amended, which is classified
    principally to chapter 7 (Sec. 141 et seq.) of Title 29, Labor. For
    complete classification of this Act to the Code, see section 141 of
    Title 29 and Tables.
      The Federal Trade Commission Act, referred to in subsec.
    (c)(4)(D), is act Sept. 26, 1914, ch. 311, 38 Stat. 717, as
    amended, which is classified generally to subchapter I (Sec. 41 et
    seq.) of chapter 2 of Title 15, Commerce and Trade. For complete
    classification of this Act to the Code, see section 58 of Title 15
    and Tables.

-MISC1-
                                AMENDMENTS                            
      1998 - Subsec. (a)(1). Pub. L. 105-258, Sec. 106(a)(1)-(4), in
    introductory provisions, in first sentence, inserted "new assembled
    motor vehicles," after "scrap,", struck out "file with the
    Commission, and" after "conference shall", and substituted
    "inspection in an automated tariff system," for "inspection,", and
    in second sentence, substituted "tariffs" for "tariff filings".
      Subsec. (a)(1)(C). Pub. L. 105-258, Sec. 106(a)(5), substituted
    "transportation intermediary, as defined in section 1702(17)(A) of
    this Appendix," for "freight forwarder".
      Subsec. (a)(1)(E). Pub. L. 105-258, Sec. 106(a)(7), struck out
    "loyalty contract," before "bill of lading".
      Subsec. (a)(1)(F). Pub. L. 105-258, Sec. 106(a)(6), (8), (9),
    added subpar. (F).
      Subsec. (a)(2). Pub. L. 105-258, Sec. 106(a)(10), added par. (2)
    and struck out former par. (2) which read as follows: "Copies of
    tariffs shall be made available to any person, and a reasonable
    charge may be assessed for them."
      Subsec. (c). Pub. L. 105-258, Sec. 106(b), amended heading and
    text of subsec. (c) generally. Prior to amendment, text read as
    follows: "An ocean common carrier or conference may enter into a
    service contract with a shipper or shippers' association subject to
    the requirements of this chapter. Except for service contracts
    dealing with bulk cargo, forest products, recycled metal scrap,
    waste paper, or paper waste, each contract entered into under this
    subsection shall be filed confidentially with the Commission, and
    at the same time, a concise statement of its essential terms shall
    be filed with the Commission and made available to the general
    public in tariff format, and those essential terms shall be
    available to all shippers similarly situated. The essential terms
    shall include - 
        "(1) the origin and destination port ranges in the case of port-
      to-port movements, and the origin and destination geographic
      areas in the case of through intermodal movements;
        "(2) the commodity or commodities involved;
        "(3) the minimum volume;
        "(4) the line-haul rate;
        "(5) the duration;
        "(6) service commitments; and
        "(7) the liquidated damages for nonperformance, if any.
    The exclusive remedy for a breach of a contract entered into under
    this subsection shall be an action in an appropriate court, unless
    the parties otherwise agree."
      Subsec. (d). Pub. L. 105-258, Sec. 106(c), substituted "Tariff
    rates" for "Rates" in heading and substituted "30 calendar days
    after publication." for "30 days after filing with the Commission."
    in first sentence, inserted "calendar" after "30" in second
    sentence, and substituted "publication." for "publication and
    filing with the Commission." in last sentence.
      Subsec. (e)(1). Pub. L. 105-258, Sec. 106(d)(2), which directed
    amendment of par. (1) by substituting "publish a new tariff, or an
    error in quoting a tariff," for "file a new tariff," was executed
    by making the substitution for "file a new tariff" after "in
    failing to", to reflect the probable intent of Congress.
      Pub. L. 105-258, Sec. 106(d)(1), substituted "error in a," for
    "error in a tariff of a clerical or administrative nature or an
    error due to inadvertence".
      Subsec. (e)(2). Pub. L. 105-258, Sec. 106(d)(3), (4), substituted
    "refund for an error in a tariff or a failure to publish a tariff,
    published a new tariff" for "refund, filed a new tariff with the
    Commission" and inserted "and" at end.
      Subsec. (e)(3), (4). Pub. L. 105-258, Sec. 106(d)(5),
    redesignated par. (4) as (3) and struck out former par. (3) which
    read as follows: "the common carrier or conference agrees that if
    permission is granted by the Commission, an appropriate notice will
    be published in the tariff, or such other steps taken as the
    Commission may require that give notice of the rate on which the
    refund or waiver would be based, and additional refunds or waivers
    as appropriate shall be made with respect to other shipments in the
    manner prescribed by the Commission in its order approving the
    application; and".
      Subsec. (f). Pub. L. 105-258, Sec. 106(e), amended heading and
    text of subsec. (f) generally. Prior to amendment, text read as
    follows: "The Commission may by regulation prescribe the form and
    manner in which the tariffs required by this section shall be
    published and filed. The Commission may reject a tariff that is not
    filed in conformity with this section and its regulations. Upon
    rejection by the Commission, the tariff is void and its use is
    unlawful."
      Subsec. (g). Pub. L. 105-258, Sec. 106(f), added subsec. (g).

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Amendment by Pub. L. 105-258 effective May 1, 1999, see section 2
    of Pub. L. 105-258, set out as a note under section 1701 of this
    Appendix.

-FOOTNOTE-
    (!1) So in original. Probably should be "(2)(A),".

    (!2) So in original.

-End-

-CITE-
    46 USC APPENDIX Sec. 1708                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 36 - INTERNATIONAL OCEAN COMMERCE TRANSPORTATION

-HEAD-
    Sec. 1708. Controlled carriers

-STATUTE-
    (a) Controlled carrier rates
      No controlled carrier subject to this section may maintain rates
    or charges in its tariffs or service contracts, or charge or assess
    rates, that are below a level that is just and reasonable, nor may
    any such carrier establish (!1) maintain, or enforce unjust or
    unreasonable classifications, rules, or regulations in those
    tariffs or service contracts. An unjust or unreasonable
    classification, rule, or regulation means one that results or is
    likely to result in the carriage or handling of cargo at rates or
    charges that are below a just and reasonable level. The Commission
    may, at any time after notice and hearing, prohibit the publication
    or use of any rates, charges, classifications, rules, or
    regulations that the controlled carrier has failed to demonstrate
    to be just and reasonable. In a proceeding under this subsection,
    the burden of proof is on the controlled carrier to demonstrate
    that its rates, charges, classifications, rules, or regulations are
    just and reasonable. Rates, charges, classifications, rules, or
    regulations that have been suspended or prohibited by the
    Commission are void and their use is unlawful.

    (b) Rate standards
      For the purpose of this section, in determining whether rates,
    charges, classifications, rules, or regulations by a controlled
    carrier are just and reasonable, the Commission shall take into
    account whether the rates or charges which have been published or
    assessed or which would result from the pertinent classifications,
    rules, or regulations are below a level which is fully compensatory
    to the controlled carrier based upon that carrier's actual costs or
    upon its constructive costs. For purposes of the preceding
    sentence, the term "constructive costs" means the costs of another
    carrier, other than a controlled carrier, operating similar vessels
    and equipment in the same or a similar trade. The Commission may
    also take into account other appropriate factors, including but not
    limited to, whether - 
        (1) the rates, charges, classifications, rules, or regulations
      are the same as or similar to those published or assessed or
      assessed (!2) by other carriers in the same trade;

        (2) the rates, charges, classifications, rules, or regulations
      are required to assure movement of particular cargo in the trade;
      or
        (3) the rates, charges, classifications, rules, or regulations
      are required to maintain acceptable continuity, level, or quality
      of common carrier service to or from affected ports.
    (c) Effective date of rates
      Notwithstanding section 1707(d) of this Appendix and except for
    service contracts, the rates, charges, classifications, rules, or
    regulations of controlled carriers may not, without special
    permission of the Commission, become effective sooner than the 30th
    day after the date of publication. Each controlled carrier shall,
    upon the request of the Commission, file, within 20 days of request
    (with respect to its existing or proposed rates, charges,
    classifications, rules, or regulations), a statement of
    justification that sufficiently details the controlled carrier's
    need and purpose for such rates, charges, classifications, rules,
    or regulations upon which the Commission may reasonably base its
    determination of the lawfulness thereof.
    (d) Prohibition of rates
      Within 120 days after the receipt of information requested by the
    Commission under this section, the Commission shall determine
    whether the rates, charges, classifications, rules, or regulations
    of a controlled carrier may be unjust and unreasonable. Whenever
    the Commission is of the opinion that the rates, charges,
    classifications, rules, or regulations published or assessed by a
    controlled carrier may be unjust and unreasonable, the Commission
    shall issue an order to the controlled carrier to show cause why
    those rates, charges, classifications, rules, or regulations should
    not be prohibited. Pending a determination as to their lawfulness
    in such a proceeding, the Commission may suspend the rates,
    charges, classifications, rules, or regulations at any time before
    their effective date. In the case of rates, charges,
    classifications, rules, or regulations that have already become
    effective, the Commission may, upon the issuance of an order to
    show cause, suspend those rates, charges, classifications, rules,
    or regulations on not less than 30 days' notice to the controlled
    carrier. No period of suspension under this subsection may be
    greater than 180 days. Whenever the Commission has suspended any
    rates, charges, classifications, rules, or regulations under this
    subsection, the affected controlled carrier may publish new rates,
    charges, classifications, rules, or regulations to take effect
    immediately during the suspension period in lieu of the suspended
    rates, charges, classifications, rules, or regulations - except
    that the Commission may reject the new rates, charges,
    classifications, rules, or regulations if it is of the opinion that
    they are unjust and unreasonable.
    (e) Presidential review
      Concurrently with the publication thereof, the Commission shall
    transmit to the President each order of suspension or final order
    of prohibition of rates, charges, classifications, rules, or
    regulations of a controlled carrier subject to this section. Within
    10 days after the receipt or the effective date of the Commission
    order, the President may request the Commission in writing to stay
    the effect of the Commission's order if the President finds that
    the stay is required for reasons of national defense or foreign
    policy, which reasons shall be specified in the report.
    Notwithstanding any other law, the Commission shall immediately
    grant the request by the issuance of an order in which the
    President's request shall be described. During any such stay, the
    President shall, whenever practicable, attempt to resolve the
    matter in controversy by negotiation with representatives of the
    applicable foreign governments.
    (f) Exceptions
      This section does not apply to - 
        (1) a controlled carrier of a state whose vessels are entitled
      by a treaty of the United States to receive national or most-
      favored-nation treatment; or
        (2) a trade served exclusively by controlled carriers.

-SOURCE-
    (Pub. L. 98-237, Sec. 9, Mar. 20, 1984, 98 Stat. 76; Pub. L. 102-
    100, Sec. 5, Aug. 17, 1991, 105 Stat. 492; Pub. L. 105-258, title
    I, Sec. 108, Oct. 14, 1998, 112 Stat. 1908.)

-MISC1-
                                AMENDMENTS                            
      1998 - Subsec. (a). Pub. L. 105-258, Sec. 108(1)-(4), substituted
    "service contracts, or charge or assess rates," for "service
    contracts filed with the Commission" and "maintain, or enforce" for
    "or maintain" in first sentence, "prohibit the publication or use
    of" for "disapprove" in third sentence, and "that have been
    suspended or prohibited by the Commission" for "filed by a
    controlled carrier that have been rejected, suspended, or
    disapproved by the Commission" in last sentence.
      Subsec. (b). Pub. L. 105-258, Sec. 108(5), substituted "shall
    take into account whether the rates or charges which have been
    published or assessed or which would result from the pertinent
    classifications, rules, or regulations are below a level which is
    fully compensatory to the controlled carrier based upon that
    carrier's actual costs or upon its constructive costs. For purposes
    of the preceding sentence, the term 'constructive costs' means the
    costs of another carrier, other than a controlled carrier,
    operating similar vessels and equipment in the same or a similar
    trade. The Commission may also take into account other appropriate
    factors, including but not limited to, whether - " for "may take
    into account appropriate factors including, but not limited to,
    whether - " in introductory provisions.
      Subsec. (b)(1). Pub. L. 105-258, Sec. 108(6), (7), redesignated
    par. (2) as (1), substituted "published or assessed" for "filed",
    and struck out former par. (1) which read as follows: "the rates or
    charges which have been filed or which would result from the
    pertinent classifications, rules, or regulations are below a level
    which is fully compensatory to the controlled carrier based upon
    that carrier's actual costs or upon its constructive costs, which
    are hereby defined as the costs of another carrier, other than a
    controlled carrier, operating similar vessels and equipment in the
    same or a similar trade;".
      Subsec. (b)(2) to (4). Pub. L. 105-258, Sec. 108(6), redesignated
    pars. (2) to (4) as (1) to (3), respectively.
      Subsec. (c). Pub. L. 105-258, Sec. 108(8), substituted
    "publication." for "filing with the Commission." in first sentence.
      Subsec. (d). Pub. L. 105-258, Sec. 108(9)-(15), substituted
    "Prohibition" for "Disapproval" in heading, inserted first sentence
    to read as follows: "Within 120 days after the receipt of
    information requested by the Commission under this section, the
    Commission shall determine whether the rates, charges,
    classifications, rules, or regulations of a controlled carrier may
    be unjust and unreasonable.", substituted "published or assessed"
    for "filed", "shall issue" for "may issue", and "prohibited." for
    "disapproved." in second sentence, substituted "30" for "60" in
    fourth sentence, and in last sentence inserted "controlled" after
    "affected" and substituted "publish" for "file".
      Subsec. (e). Pub. L. 105-258, Sec. 108(16), substituted
    "prohibition" for "disapproval" in first sentence.
      Subsec. (f)(1). Pub. L. 105-258, Sec. 108(17), inserted "or" at
    end.
      Subsec. (f)(2) to (5). Pub. L. 105-258, Sec. 108(18), (19),
    redesignated par. (5) as (2) and struck out former pars. (2) to (4)
    which read as follows:
      "(2) a controlled carrier of a state which, on the effective date
    of this section, has subscribed to the statement of shipping policy
    contained in note 1 to annex A of the Code of Liberalization of
    Current Invisible Operations, adopted by the Council of the
    Organization for Economic Cooperation and Development;
      "(3) rates, charges, classifications, rules, or regulations of a
    controlled carrier in any particular trade that are covered by an
    agreement effective under section 1705 of this Appendix, other than
    an agreement in which all of the members are controlled carriers
    not otherwise excluded from the provisions of this subsection;
      "(4) rates, charges, classifications, rules, or regulations
    governing the transportation of cargo by a controlled carrier
    between the country by whose government it is owned or controlled,
    as defined herein and the United States; or".
      1991 - Subsec. (a). Pub. L. 102-100, Sec. 5(a), inserted "or
    service contracts" after "tariffs" in two places.
      Subsec. (c). Pub. L. 102-100, Sec. 5(b), inserted "and except for
    service contracts" after "Notwithstanding section 1707(d) of this
    Appendix".

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Amendment by Pub. L. 105-258 effective May 1, 1999, see section 2
    of Pub. L. 105-258, set out as a note under section 1701 of this
    Appendix.

-FOOTNOTE-
    (!1) So in original. Probably should be followed by a comma.

    (!2) So in original.

-End-

-CITE-
    46 USC APPENDIX Sec. 1709                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 36 - INTERNATIONAL OCEAN COMMERCE TRANSPORTATION

-HEAD-
    Sec. 1709. Prohibited acts

-STATUTE-
    (a) In general
      No person may - 
        (1) knowingly and willfully, directly or indirectly, by means
      of false billing, false classification, false weighing, false
      report of weight, false measurement, or by any other unjust or
      unfair device or means obtain or attempt to obtain ocean
      transportation for property at less than the rates or charges
      that would otherwise be applicable;
        (2) operate under an agreement required to be filed under
      section 1704 of this Appendix that has not become effective under
      section 1705 of this Appendix, or that has been rejected,
      disapproved, or canceled; or
        (3) operate under an agreement required to be filed under
      section 1704 of this Appendix except in accordance with the terms
      of the agreement or any modifications made by the Commission to
      the agreement.
    (b) Common carriers
      No common carrier, either alone or in conjunction with any other
    person, directly or indirectly, may - 
        (1) allow any person to obtain transportation for property at
      less than the rates or charges established by the carrier in its
      tariff or service contract by means of false billing, false
      classification, false weighing, false measurement, or by any
      other unjust or unfair device or means;
        (2) provide service in the liner trade that - 
          (A) is not in accordance with the rates, charges,
        classifications, rules, and practices contained in a tariff
        published or a service contract entered into under section 1707
        of this Appendix unless excepted or exempted under section
        1707(a)(1) or 1715 of this Appendix; or
          (B) is under a tariff or service contract which has been
        suspended or prohibited by the Commission under section 1708 of
        this Appendix or the Foreign Shipping Practices Act of 1988 (46
        U.S.C. App. 1710a);

        (3) retaliate against any shipper by refusing, or threatening
      to refuse, cargo space accommodations when available, or resort
      to other unfair or unjustly discriminatory methods because the
      shipper has patronized another carrier, or has filed a complaint,
      or for any other reason;
        (4) for service pursuant to a tariff, engage in any unfair or
      unjustly discriminatory practice in the matter of - 
          (A) rates or charges;
          (B) cargo classifications;
          (C) cargo space accommodations or other facilities, due
        regard being had for the proper loading of the vessel and the
        available tonnage;
          (D) the loading and landing of freight; or
          (E) the adjustment and settlement of claims;

        (5) for service pursuant to a service contract, engage in any
      unfair or unjustly discriminatory practice in the matter of rates
      or charges with respect to any port;
        (6) use a vessel or vessels in a particular trade for the
      purpose of excluding, preventing, or reducing competition by
      driving another ocean common carrier out of that trade;
        (7) offer or pay any deferred rebates;
        (8) for service pursuant to a tariff, give any undue or
      unreasonable preference or advantage or impose any undue or
      unreasonable prejudice or disadvantage;
        (9) for service pursuant to a service contract, give any undue
      or unreasonable preference or advantage or impose any undue or
      unreasonable prejudice or disadvantage with respect to any port;
        (10) unreasonably refuse to deal or negotiate;
        (11) knowingly and willfully accept cargo from or transport
      cargo for the account of an ocean transportation intermediary
      that does not have a tariff and a bond, insurance, or other
      surety as required by sections 1707 and 1718 of this Appendix;
        (12) knowingly and willfully enter into a service contract with
      an ocean transportation intermediary that does not have a tariff
      and a bond, insurance, or other surety as required by sections
      1707 and 1718 of this Appendix, or with an affiliate of such
      ocean transportation intermediary; or
        (13) knowingly disclose, offer, solicit, or receive any
      information concerning the nature, kind, quantity, destination,
      consignee, or routing of any property tendered or delivered to a
      common carrier without the consent of the shipper or consignee if
      that information - 
          (A) may be used to the detriment or prejudice of the shipper
        or consignee;
          (B) may improperly disclose its business transaction to a
        competitor; or
          (C) may be used to the detriment or prejudice of any common
        carrier.

    Nothing in paragraph (13) shall be construed to prevent providing
    such information, in response to legal process, to the United
    States, the Commission, or to an independent neutral body operating
    within the scope of its authority to fulfill the policing
    obligations of the parties to an agreement effective under this
    chapter. Nor shall it be prohibited for any ocean common carrier
    that is a party to a conference agreement approved under this
    chapter, or any receiver, trustee, lessee, agent, or employee of
    that carrier, or any other person authorized by that carrier to
    receive information, to give information to the conference or any
    person, firm, corporation, or agency designated by the conference,
    or to prevent the conference or its designee from soliciting or
    receiving information for the purpose of determining whether a
    shipper or consignee has breached an agreement with the conference
    or its member lines or for the purpose of determining whether a
    member of the conference has breached the conference agreement, or
    for the purpose of compiling statistics of cargo movement, but the
    use of such information for any other purpose prohibited by this
    chapter or any other Act is prohibited.
    (c) Concerted action
      No conference or group of two or more common carriers may - 
        (1) boycott or take any other concerted action resulting in an
      unreasonable refusal to deal;
        (2) engage in conduct that unreasonably restricts the use of
      intermodal services or technological innovations;
        (3) engage in any predatory practice designed to eliminate the
      participation, or deny the entry, in a particular trade of a
      common carrier not a member of the conference, a group of common
      carriers, an ocean tramp, or a bulk carrier;
        (4) negotiate with a nonocean carrier or group of nonocean
      carriers (for example, truck, rail, or air operators) on any
      matter relating to rates or services provided to ocean common
      carriers within the United States by those non-ocean carriers,
      unless such negotiations and any resulting agreements are not in
      violation of the antitrust laws and are consistent with the
      purposes of this chapter: Provided, That this paragraph does not
      prohibit the setting and publishing of a joint through rate by a
      conference, joint venture, or an association of ocean common
      carriers;
        (5) deny in the export foreign commerce of the United States
      compensation to an ocean transportation intermediary, as defined
      by section 1702(17)(A) of this Appendix, or limit that
      compensation to less than a reasonable amount;
        (6) allocate shippers among specific carriers that are parties
      to the agreement or prohibit a carrier that is a party to the
      agreement from soliciting cargo from a particular shipper, except
      as authorized by section 1704(g) of this Appendix, or as
      otherwise required by the law of the United States or the
      importing or exporting country, or as agreed to by a shipper in a
      service contract;
        (7) for service pursuant to a service contract, engage in any
      unjustly discriminatory practice in the matter of rates or
      charges with respect to any locality, port, or persons due to
      those persons' status as shippers' associations or ocean
      transportation intermediaries; or
        (8) for service pursuant to a service contract, give any undue
      or unreasonable preference or advantage or impose any undue or
      unreasonable prejudice or disadvantage with respect to any
      locality, port, or persons due to those persons' status as
      shippers' associations or ocean transportation intermediaries;
    (d) Common carriers, ocean transportation intermediaries, and
      marine terminal operators
      (1) No common carrier, ocean transportation intermediary, or
    marine terminal operator may fail to establish, observe, and
    enforce just and reasonable regulations and practices relating to
    or connected with receiving, handling, storing, or delivering
    property.
      (2) No marine terminal operator may agree with another marine
    terminal operator or with a common carrier to boycott, or
    unreasonably discriminate in the provision of terminal services to,
    any common carrier or ocean tramp.
      (3) The prohibitions in subsections (b)(10) and (13) of this
    section apply to marine terminal operators.
      (4) No marine terminal operator may give any undue or
    unreasonable preference or advantage or impose any undue or
    unreasonable prejudice or disadvantage with respect to any person.
      (5) The prohibition in subsection (b)(13) of this section applies
    to ocean transportation intermediaries, as defined by section
    1702(17)(A) of this Appendix.
    (e) Joint ventures
      For purposes of this section, a joint venture or consortium of
    two or more common carriers but operated as a single entity shall
    be treated as a single common carrier.

-SOURCE-
    (Pub. L. 98-237, Sec. 10, Mar. 20, 1984, 98 Stat. 77; Pub. L. 101-
    595, title VII, Sec. 710(c), Nov. 16, 1990, 104 Stat. 2997; Pub.
    L. 102-251, title II, Sec. 201(b), Mar. 9, 1992, 106 Stat. 60; Pub.
    L. 105-258, title I, Sec. 109, Oct. 14, 1998, 112 Stat. 1909; Pub.
    L. 105-383, title IV, Sec. 424(b), Nov. 13, 1998, 112 Stat. 3441.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Foreign Shipping Practices Act of 1988, referred to in
    subsec. (b)(2), is Pub. L. 100-418, title X, subtitle A (Secs.
    10001-10003), Aug. 23, 1988, 102 Stat. 1570, which enacted section
    1710a of this Appendix, amended section 1122b of this Appendix, and
    enacted provisions set out as a note under section 3302 of Title
    46, Shipping. For complete classification of this Act to the Code,
    see Short Title of 1988 Amendment note set out under section 1701
    of this Appendix and Tables.

-MISC1-
                                AMENDMENTS                            
      1998 - Subsec. (b). Pub. L. 105-258, Sec. 109(a)(16), (17),
    substituted "paragraph (13)" for "paragraph (16)" and inserted "the
    Commission," after "United States," in concluding provisions.
      Subsec. (b)(1). Pub. L. 105-258, Sec. 109(a)(1), (2),
    redesignated par. (4) as (1) and struck out former par. (1) which
    read as follows: "charge, demand, collect, or receive greater,
    less, or different compensation for the transportation of property
    or for any service in connection therewith than the rates and
    charges that are shown in its tariffs or service contracts;".
      Subsec. (b)(2). Pub. L. 105-258, Sec. 109(a)(1), (3), added par.
    (2) and struck out former par. (2) which read as follows: "rebate,
    refund, or remit in any manner, or by any device, any portion of
    its rates except in accordance with its tariffs or service
    contracts;".
      Subsec. (b)(3). Pub. L. 105-258, Sec. 109(a)(1), (4),
    redesignated par. (5) as (3) and struck out former par. (3) which
    read as follows: "extend or deny to any person any privilege,
    concession, equipment, or facility except in accordance with its
    tariffs or service contracts;".
      Subsec. (b)(4). Pub. L. 105-258, Sec. 109(a)(5), substituted "for
    service pursuant to a tariff," for "except for service contracts,"
    in introductory provisions.
      Pub. L. 105-258, Sec. 109(a)(4), redesignated par. (6) as (4).
    Former par. (4) redesignated (1).
      Subsec. (b)(4)(A). Pub. L. 105-258, Sec. 109(a)(6), substituted
    "rates or charges;" for "rates;".
      Subsec. (b)(5). Pub. L. 105-258, Sec. 109(a)(7), added par. (5).
    Former par. (5) redesignated (3).
      Subsec. (b)(6). Pub. L. 105-258, Sec. 109(a)(9), added par. (6)
    and struck out former par. (6) which read as follows: "employ any
    fighting ship;".
      Pub. L. 105-258, Sec. 109(a)(8), redesignated par. (7) as (6).
    Former par. (6) redesignated (4).
      Subsec. (b)(7). Pub. L. 105-258, Sec. 109(a)(8), redesignated
    par. (8) as (7). Former par. (7) redesignated (6).
      Subsec. (b)(8). Pub. L. 105-258, Sec. 109(a)(10), added par. (8).
    Former par. (8) redesignated (7).
      Subsec. (b)(9), (10). Pub. L. 105-258, Sec. 109(a)(10), added
    pars. (9) and (10) and struck out former pars. (9) and (10) which
    read as follows:
      "(9) use a loyalty contract, except in conformity with the
    antitrust laws;
      "(10) demand, charge, or collect any rate or charge that is
    unjustly discriminatory between shippers or ports;".
      Subsec. (b)(11). Pub. L. 105-258, Sec. 109(a)(10)-(13),
    redesignated par. (14) as (11), substituted "an ocean
    transportation intermediary" for "a non-vessel-operating common
    carrier" and "sections 1707 and 1718" for "sections 1707 and 1721",
    and struck out former par. (11) which read as follows: "except for
    service contracts, make or give any undue or unreasonable
    preference or advantage to any particular person, locality, or
    description of traffic in any respect whatsoever;".
      Subsec. (b)(12). Pub. L. 105-258, Sec. 109(a)(10)-(15),
    redesignated par. (15) as (12), substituted "an ocean
    transportation intermediary" for "a non-vessel-operating common
    carrier" in two places, substituted "sections 1707 and 1718" for
    "sections 1707 and 1721", struck out "or in which an ocean
    transportation intermediary is listed as an affiliate" before "that
    does not", substituted "Appendix, or with an affiliate of such
    ocean transportation intermediary;" for "Appendix;", and struck out
    former par. (12) which read as follows: "subject any particular
    person, locality, or description of traffic to an unreasonable
    refusal to deal or any undue or unreasonable prejudice or
    disadvantage in any respect whatsoever;".
      Subsec. (b)(13). Pub. L. 105-258, Sec. 109(a)(10), (11),
    redesignated par. (16) as (13) and struck out former par. (13)
    which read as follows: "refuse to negotiate with a shippers'
    association;".
      Subsec. (b)(14) to (16). Pub. L. 105-258, Sec. 109(a)(11),
    redesignated pars. (14) to (16) as (11) to (13), respectively.
      Subsec. (c)(4). Pub. L. 105-258, Sec. 109(b)(1), which directed
    amendment of subsec. (c)(4) by substituting "non-ocean carriers,
    unless such negotiations and any resulting agreements are not in
    violation of the antitrust laws and are consistent with the
    purposes of this chapter" for "non-ocean carriers", was executed by
    making the substitution for "nonocean carriers" the second place it
    appeared, to reflect the probable intent of Congress.
      Subsec. (c)(5). Pub. L. 105-258, Sec. 109(b)(2), substituted
    "transportation intermediary, as defined by section 1702(17)(A) of
    this Appendix," for "freight forwarder".
      Subsec. (c)(6). Pub. L. 105-383 inserted "authorized by section
    1704(g) of this Appendix, or as" before "otherwise".
      Subsec. (c)(7), (8). Pub. L. 105-258, Sec. 109(b)(3)-(5), added
    pars. (7) and (8).
      Subsec. (d). Pub. L. 105-258, Sec. 109(c)(1), substituted
    "transportation intermediaries," for "freight forwarders," in
    heading.
      Subsec. (d)(1). Pub. L. 105-258, Sec. 109(c)(2), substituted
    "transportation intermediary," for "freight forwarder,".
      Subsec. (d)(3). Pub. L. 105-258, Sec. 109(c)(3), which directed
    amendment of subsec. (d) by substituting "subsections (b)(10) and
    (13)" for "subsection (b)(11), (12), and (16)", was executed by
    making the substitution for "subsection (b)(11), (12), and (14)" in
    par. (3), to reflect the probable intent of Congress.
      Subsec. (d)(4), (5). Pub. L. 105-258, Sec. 109(c)(4), added pars.
    (4) and (5).
      1992 - Subsec. (b)(14), (15). Pub. L. 102-251 inserted ",
    insurance, or other surety" after "bond".
      1990 - Subsec. (b). Pub. L. 101-595 added pars. (14) and (15),
    redesignated former par. (14) as (16), and substituted "paragraph
    (16)" for "paragraph (14)" in penultimate sentence.

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Amendment by Pub. L. 105-258 effective May 1, 1999, see section 2
    of Pub. L. 105-258, set out as a note under section 1701 of this
    Appendix.

                     EFFECTIVE DATE OF 1992 AMENDMENT                 
      Section 201(f) of Pub. L. 102-251 provided that: "This section
    [amending this section and section 1721 of this Appendix and
    enacting provisions set out as notes under sections 1701 and 1721
    of this Appendix] shall become effective 90 days after the date of
    its enactment [Mar. 9, 1992]."

                     EFFECTIVE DATE OF 1990 AMENDMENT                 
      Section 710(e) of Pub. L. 101-595 provided that: "This section
    [enacting section 1721 of this Appendix, amending this section, and
    enacting provisions set out as notes under sections 1701 and 1721
    of this Appendix] shall become effective 90 days after the date of
    its enactment [Nov. 16, 1990]."

-End-

-CITE-
    46 USC APPENDIX Sec. 1710                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 36 - INTERNATIONAL OCEAN COMMERCE TRANSPORTATION

-HEAD-
    Sec. 1710. Complaints, investigations, reports, and reparations

-STATUTE-
    (a) Filing of complaints
      Any person may file with the Commission a sworn complaint
    alleging a violation of this chapter, other than section 1705(g) of
    this Appendix, and may seek reparation for any injury caused to the
    complainant by that violation.
    (b) Satisfaction or investigation of complaints
      The Commission shall furnish a copy of a complaint filed pursuant
    to subsection (a) of this section to the person named therein who
    shall, within a reasonable time specified by the Commission,
    satisfy the complaint or answer it in writing. If the complaint is
    not satisfied, the Commission shall investigate it in an
    appropriate manner and make an appropriate order.
    (c) Commission investigations
      The Commission, upon complaint or upon its own motion, may
    investigate any conduct or agreement that it believes may be in
    violation of this chapter. Except in the case of an injunction
    granted under subsection (h) of this section, each agreement under
    investigation under this section remains in effect until the
    Commission issues an order under this subsection. The Commission
    may by order disapprove, cancel, or modify any agreement filed
    under section 1704(a) of this Appendix that operates in violation
    of this chapter. With respect to agreements inconsistent with
    section 1705(g) of this Appendix, the Commission's sole remedy is
    under section 1705(h) of this Appendix.
    (d) Conduct of investigation
      Within 10 days after the initiation of a proceeding under this
    section, the Commission shall set a date on or before which its
    final decision will be issued. This date may be extended for good
    cause by order of the Commission.
    (e) Undue delays
      If, within the time period specified in subsection (d) of this
    section, the Commission determines that it is unable to issue a
    final decision because of undue delays caused by a party to the
    proceedings, the Commission may impose sanctions, including
    entering a decision adverse to the delaying party.
    (f) Reports
      The Commission shall make a written report of every investigation
    made under this chapter in which a hearing was held stating its
    conclusions, decisions, findings of fact, and order. A copy of this
    report shall be furnished to all parties. The Commission shall
    publish each report for public information, and the published
    report shall be competent evidence in all courts of the United
    States.
    (g) Reparations
      For any complaint filed within 3 years after the cause of action
    accrued, the Commission shall, upon petition of the complainant and
    after notice and hearing, direct payment of reparations to the
    complainant for actual injury (which, for purposes of this
    subsection, also includes the loss of interest at commercial rates
    compounded from the date of injury) caused by a violation of this
    chapter plus reasonable attorney's fees. Upon a showing that the
    injury was caused by activity that is prohibited by section
    1709(b)(3) or (6) of this Appendix or section 1709(c)(1) or (3) of
    this Appendix, or that violates section 1709(a)(2) or (3) of this
    Appendix, the Commission may direct the payment of additional
    amounts; but the total recovery of a complainant may not exceed
    twice the amount of the actual injury. In the case of injury caused
    by an activity that is prohibited by section 1709(b)(4)(A) or (B)
    of this Appendix, the amount of the injury shall be the difference
    between the rate paid by the injured shipper and the most favorable
    rate paid by another shipper.
    (h) Injunction
      (1) In connection with any investigation conducted under this
    section, the Commission may bring suit in a district court of the
    United States to enjoin conduct in violation of this chapter. Upon
    a showing that standards for granting injunctive relief by courts
    of equity are met and after notice to the defendant, the court may
    grant a temporary restraining order or preliminary injunction for a
    period not to exceed 10 days after the Commission has issued an
    order disposing of the issues under investigation. Any such suit
    shall be brought in a district in which the defendant resides or
    transacts business.
      (2) After filing a complaint with the Commission under subsection
    (a) of this section, the complainant may file suit in a district
    court of the United States to enjoin conduct in violation of this
    chapter. Upon a showing that standards for granting injunctive
    relief by courts of equity are met and after notice to the
    defendant, the court may grant a temporary restraining order or
    preliminary injunction for a period not to exceed 10 days after the
    Commission has issued an order disposing of the complaint. Any such
    suit shall be brought in the district in which the defendant has
    been sued by the Commission under paragraph (1); or, if no suit has
    been filed, in a district in which the defendant resides or
    transacts business. A defendant that prevails in a suit under this
    paragraph shall be allowed reasonable attorney's fees to be
    assessed and collected as part of the costs of the suit.

-SOURCE-
    (Pub. L. 98-237, Sec. 11, Mar. 20, 1984, 98 Stat. 80; Pub. L. 98-
    595, Sec. 3(b)(2), Oct. 30, 1984, 98 Stat. 3132; Pub. L. 105-258,
    title I, Sec. 110, Oct. 14, 1998, 112 Stat. 1911.)

-MISC1-
                                AMENDMENTS                            
      1998 - Subsec. (g). Pub. L. 105-258 substituted "1709(b)(3) or
    (6)" for "1709(b)(5) or (7)" and "1709(b)(4)(A) or (B)" for
    "1709(b)(6)(A) or (B)".
      1984 - Subsec. (g). Pub. L. 98-595 substituted "section
    1709(c)(1) or (3) of this Appendix" for "section 1709(c)(1) or (4)
    of this Appendix".

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Amendment by Pub. L. 105-258 effective May 1, 1999, see section 2
    of Pub. L. 105-258, set out as a note under section 1701 of this
    Appendix.

-End-

-CITE-
    46 USC APPENDIX Sec. 1710a                                  01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 36 - INTERNATIONAL OCEAN COMMERCE TRANSPORTATION

-HEAD-
    Sec. 1710a. Foreign laws and practices

-STATUTE-
    (a) Definitions
      For purposes of this section - 
        (1) "common carrier", "marine terminal operator", "ocean
      transportation intermediary", "ocean common carrier", "person",
      "shipper", "shippers' association", and "United States" have the
      meanings given each such term, respectively, in section 1702 of
      this Appendix;
        (2) "foreign carrier" means an ocean common carrier a majority
      of whose vessels are documented under the laws of a country other
      than the United States;
        (3) "maritime services" means port-to-port carriage of cargo by
      the vessels operated by ocean common carriers;
        (4) "maritime-related services" means intermodal operations,
      terminal operations, cargo solicitation, agency services, ocean
      transportation intermediary services and operations, and all
      other activities and services integral to total transportation
      systems of ocean common carriers and their foreign domiciled
      affiliates on their own and others' behalf;
        (5) "United States carrier" means an ocean common carrier which
      operates vessels documented under the laws of the United States;
      and
        (6) "United States oceanborne trade" means the carriage of
      cargo between the United States and a foreign country, whether
      direct or indirect, by an ocean common carrier.
    (b) Authority to conduct investigations
      The Federal Maritime Commission shall investigate whether any
    laws, rules, regulations, policies, or practices of foreign
    governments, or any practices of foreign carriers or other persons
    providing maritime or maritime-related services in a foreign
    country result in the existence of conditions that - 
        (1) adversely affect the operations of United States carriers
      in United States oceanborne trade; and
        (2) do not exist for foreign carriers of that country in the
      United States under the laws of the United States or as a result
      of acts of United States carriers or other persons providing
      maritime or maritime-related services in the United States.
    (c) Investigations
      (1) Investigations under subsection (b) of this section may be
    initiated by the Commission on its own motion or on the petition of
    any person, including any common carrier, shipper, shippers'
    association, ocean transportation intermediary, or marine terminal
    operator, or any branch, department, agency, or other component of
    the Government of the United States.
      (2) The Commission shall complete any such investigation and
    render a decision within 120 days after it is initiated, except
    that the Commission may extend such 120-day period for an
    additional 90 days if the Commission is unable to obtain sufficient
    information to determine whether a condition specified in
    subsection (b) of this section exists. Any notice providing such an
    extension shall clearly state the reasons for such extension.
    (d) Information requests
      (1) In order to further the purposes of subsection (b) of this
    section, the Commission may, by order, require any person
    (including any common carrier, shipper, shippers' association,
    ocean transportation intermediary, or marine terminal operator, or
    any officer, receiver, trustee, lessee, agent or employee thereof)
    to file with the Commission any periodic or special report, answers
    to questions, documentary material, or other information which the
    Commission considers necessary or appropriate. The Commission may
    require that the response to any such order shall be made under
    oath. Such response shall be furnished in the form and within the
    time prescribed by the Commission.
      (2) In an investigation under subsection (b) of this section, the
    Commission may issue subpoenas to compel the attendance and
    testimony of witnesses and the production of records or other
    evidence.
      (3) Notwithstanding any other provision of law, the Commission
    may, in its discretion, determine that any information submitted to
    it in response to a request under this subsection, or otherwise,
    shall not be disclosed to the public.
    (e) Action against foreign carriers
      (1) Whenever, after notice and opportunity for comment or
    hearing, the Commission determines that the conditions specified in
    subsection (b) of this section exist, the Commission shall take
    such action as it considers necessary and appropriate against any
    foreign carrier that is a contributing cause to, or whose
    government is a contributing cause to, such conditions, in order to
    offset such conditions. Such action may include - 
        (A) limitations on sailings to and from United States ports or
      on the amount or type of cargo carried;
        (B) suspension, in whole or in part, of any or all tariffs and
      service contracts, including the right of an ocean common carrier
      to use any or all tariffs and service contracts of conferences in
      United States trades of which it is a member for such period as
      the Commission specifies;
        (C) suspension, in whole or in part, of the right of an ocean
      common carrier to operate under any agreement filed with the
      Commission, including agreements authorizing preferential
      treatment at terminals, preferential terminal leases, space
      chartering, or pooling of cargo or revenues with other ocean
      common carriers; and
        (D) a fee, not to exceed $1,000,000 per voyage.

      (2) The Commission may consult with, seek the cooperation of, or
    make recommendations to other appropriate Government agencies prior
    to taking any action under this subsection.
      (3) Before a determination under this subsection becomes
    effective or a request is made under subsection (f) of this
    section, the determination shall be submitted immediately to the
    President who may, within 10 days after receiving such
    determination, disapprove the determination in writing, setting
    forth the reasons for the disapproval, if the President finds that
    disapproval is required for reasons of the national defense or the
    foreign policy of the United States.
    (f) Actions upon request of Commission
      Whenever the conditions specified in subsection (b) of this
    section are found by the Commission to exist, upon the request of
    the Commission - 
        (1) the collector of customs at any port or place of
      destination in the United States shall refuse the clearance
      required by section 91 of this Appendix to any vessel of a
      foreign carrier that is identified by the Commission under
      subsection (e) of this section; and
        (2) the Secretary of the department in which the Coast Guard is
      operating shall deny entry, for purposes of oceanborne trade, of
      any vessel of a foreign carrier that is identified by the
      Commission under subsection (e) of this section to any port or
      place in the United States or the navigable waters of the United
      States, or shall detain any such vessel at the port or place in
      the United States from which it is about to depart for any other
      port or place in the United States.
    (g) Report
      The Commission shall include in its annual report to Congress - 
        (1) a list of the twenty foreign countries which generated the
      largest volume of oceanborne liner cargo for the most recent
      calendar year in bilateral trade with the United States;
        (2) an analysis of conditions described in subsection (b) of
      this section being investigated or found to exist in foreign
      countries;
        (3) any actions being taken by the Commission to offset such
      conditions;
        (4) any recommendations for additional legislation to offset
      such conditions; and
        (5) a list of petitions filed under subsection (c) of this
      section that the Commission rejected, and the reasons for each
      such rejection.
    (h) Administration and enforcement of other laws
      The actions against foreign carriers authorized in subsections
    (e) and (f) of this section may be used in the administration and
    enforcement of section 1712(b)(6) of this Appendix or section
    876(1)(b) (!1) of this Appendix.

    (i) Review of rules, regulations, and final orders of Commission;
      exclusive procedure
      Any rule, regulation or final order of the Commission issued
    under this section shall be reviewable exclusively in the same
    forum and in the same manner as provided in section 2342(3)(B) of
    title 28.

-SOURCE-
    (Pub. L. 100-418, title X, Sec. 10002, Aug. 23, 1988, 102 Stat.
    1570; Pub. L. 105-258, title I, Sec. 111, Oct. 14, 1998, 112 Stat.
    1911.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 876(1)(b) of this Appendix, referred to in subsec. (h),
    was redesignated section 876(a)(2) of this Appendix by Pub. L. 105-
    258, title III, Sec. 301(b)(1), (2), Oct. 14, 1998, 112 Stat.
    1915, 1916.

-COD-
                               CODIFICATION                           
      This section was enacted as part of the Foreign Shipping
    Practices Act of 1988 and also as part of the Omnibus Trade and
    Competitiveness Act of 1988, and not as part of the Shipping Act of
    1984 which comprises this chapter.

-MISC1-
                                AMENDMENTS                            
      1998 - Subsec. (a)(1). Pub. L. 105-258, Sec. 111(1), substituted
    " 'ocean transportation intermediary'," for " 'non-vessel-operating
    common carrier',".
      Subsec. (a)(4). Pub. L. 105-258, Sec. 111(2), (3), struck out
    "forwarding and" before "agency services" and substituted "ocean
    transportation intermediary services and" for "non-vessel-operating
    common carrier".
      Subsecs. (c)(1), (d)(1). Pub. L. 105-258, Sec. 111(4),
    substituted "transportation intermediary," for "freight
    forwarder,".
      Subsec. (e)(1)(B). Pub. L. 105-258, Sec. 111(5), (6), substituted
    "and service contracts," for "filed with the Commission," and
    inserted "and service contracts" before "of conferences".
      Subsec. (h). Pub. L. 105-258, Sec. 111(7), substituted "(b)(6)"
    for "(b)(5)".

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Amendment by Pub. L. 105-258 effective May 1, 1999, see section 2
    of Pub. L. 105-258, set out as a note under section 1701 of this
    Appendix.

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      For transfer of authorities, functions, personnel, and assets of
    the Coast Guard, including the authorities and functions of the
    Secretary of Transportation relating thereto, to the Department of
    Homeland Security, and for treatment of related references, see
    sections 468(b), 551(d), 552(d), and 557 of Title 6, Domestic
    Security, and the Department of Homeland Security Reorganization
    Plan of November 25, 2002, as modified, set out as a note under
    section 542 of Title 6.

-FOOTNOTE-
    (!1) See References in Text note below.

-End-

-CITE-
    46 USC APPENDIX Sec. 1711                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 36 - INTERNATIONAL OCEAN COMMERCE TRANSPORTATION

-HEAD-
    Sec. 1711. Subpenas and discovery

-STATUTE-
    (a) In general
      In investigations and adjudicatory proceedings under this chapter
    - 
        (1) depositions, written interrogatories, and discovery
      procedures may be utilized by any party under rules and
      regulations issued by the Commission that, to the extent
      practicable, shall be in conformity with the rules applicable in
      civil proceedings in the district courts of the United States;
      and
        (2) the Commission may by subpena compel the attendance of
      witnesses and the production of books, papers, documents, and
      other evidence.
    (b) Witness fees
      Witnesses shall, unless otherwise prohibited by law, be entitled
    to the same fees and mileage as in the courts of the United States.

-SOURCE-
    (Pub. L. 98-237, Sec. 12, Mar. 20, 1984, 98 Stat. 81.)

-End-

-CITE-
    46 USC APPENDIX Sec. 1712                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 36 - INTERNATIONAL OCEAN COMMERCE TRANSPORTATION

-HEAD-
    Sec. 1712. Penalties

-STATUTE-
    (a) Assessment of penalty
      Whoever violates a provision of this chapter, a regulation issued
    thereunder, or a Commission order is liable to the United States
    for a civil penalty. The amount of the civil penalty, unless
    otherwise provided in this chapter, may not exceed $5,000 for each
    violation unless the violation was willfully and knowingly
    committed, in which case the amount of the civil penalty may not
    exceed $25,000 for each violation. Each day of a continuing
    violation constitutes a separate offense. The amount of any penalty
    imposed upon a common carrier under this subsection shall
    constitute a lien upon the vessels operated by that common carrier
    and any such vessel may be libeled therefore in the district court
    of the United States for the district in which it may be found.
    (b) Additional penalties
      (1) For a violation of section 1709(b)(1), (2), or (7) of this
    Appendix, the Commission may suspend any or all tariffs of the
    common carrier, or that common carrier's right to use any or all
    tariffs of conferences of which it is a member, for a period not to
    exceed 12 months.
      (2) For failure to supply information ordered to be produced or
    compelled by subpena under section 1711 of this Appendix, the
    Commission may, after notice and an opportunity for hearing,
    suspend any or all tariffs of a common carrier, or that common
    carrier's right to use any or all tariffs of conferences of which
    it is a member.
      (3) A common carrier that accepts or handles cargo for carriage
    under a tariff that has been suspended or after its right to
    utilize that tariff has been suspended is subject to a civil
    penalty of not more than $50,000 for each shipment.
      (4) If the Commission finds, after notice and an opportunity for
    a hearing, that a common carrier has failed to supply information
    ordered to be produced or compelled by subpoena under section 1711
    of this Appendix, the Commission may request that the Secretary of
    the Treasury refuse or revoke any clearance required for a vessel
    operated by that common carrier. Upon request by the Commission,
    the Secretary of the Treasury shall, with respect to the vessel
    concerned, refuse or revoke any clearance required by section 91 of
    this Appendix.
      (5) If, in defense of its failure to comply with a subpena or
    discovery order, a common carrier alleges that documents or
    information located in a foreign country cannot be produced because
    of the laws of that country, the Commission shall immediately
    notify the Secretary of State of the failure to comply and of the
    allegation relating to foreign laws. Upon receiving the
    notification, the Secretary of State shall promptly consult with
    the government of the nation within which the documents or
    information are alleged to be located for the purpose of assisting
    the Commission in obtaining the documents or information sought.
      (6) If, after notice and hearing, the Commission finds that the
    action of a common carrier, acting alone or in concert with any
    person, or a foreign government has unduly impaired access of a
    vessel documented under the laws of the United States to ocean
    trade between foreign ports, the Commission shall take action that
    it finds appropriate, including the imposition of any of the
    penalties authorized under paragraphs (1), (2), (3), and (4) of
    this subsection.
      (7) Before an order under this subsection becomes effective, it
    shall be immediately submitted to the President who may, within 10
    days after receiving it, disapprove the order if the President
    finds that disapproval is required for reasons of the national
    defense or the foreign policy of the United States.
    (c) Assessment procedures
      Until a matter is referred to the Attorney General, the
    Commission may, after notice and an opportunity for hearing, assess
    each civil penalty provided for in this chapter. In determining the
    amount of the penalty, the Commission shall take into account the
    nature, circumstances, extent, and gravity of the violation
    committed and, with respect to the violator, the degree of
    culpability, history of prior offenses, ability to pay, and such
    other matters as justice may require. The Commission may
    compromise, modify, or remit, with or without conditions, any civil
    penalty.
    (d) Review of civil penalty
      A person against whom a civil penalty is assessed under this
    section may obtain review thereof under chapter 158 of title 28.
    (e) Failure to pay assessment
      If a person fails to pay an assessment of a civil penalty after
    it has become final or after the appropriate court has entered
    final judgment in favor of the Commission, the Attorney General at
    the request of the Commission may seek to recover the amount
    assessed in an appropriate district court of the United States. In
    such an action, the court shall enforce the Commission's order
    unless it finds that the order was not regularly made or duly
    issued.
    (f) Limitations
      (1) No penalty may be imposed on any person for conspiracy to
    violate section 1709(a)(1), (b)(1), or (b)(2) of this Appendix, or
    to defraud the Commission by concealment of such a violation.
    Neither the Commission nor any court shall order any person to pay
    the difference between the amount billed and agreed upon in writing
    with a common carrier or its agent and the amount set forth in any
    tariff or service contract by that common carrier for the
    transportation service provided.
      (2) Each proceeding to assess a civil penalty under this section
    shall be commenced within 5 years from the date the violation
    occurred.

-SOURCE-
    (Pub. L. 98-237, Sec. 13, Mar. 20, 1984, 98 Stat. 82; Pub. L. 105-
    258, title I, Sec. 112, Oct. 14, 1998, 112 Stat. 1911.)

-MISC1-
                                AMENDMENTS                            
      1998 - Subsec. (a). Pub. L. 105-258, Sec. 112(a), inserted at end
    "The amount of any penalty imposed upon a common carrier under this
    subsection shall constitute a lien upon the vessels operated by
    that common carrier and any such vessel may be libeled therefore in
    the district court of the United States for the district in which
    it may be found."
      Subsec. (b)(1). Pub. L. 105-258, Sec. 112(b)(1), substituted
    "section 1709(b)(1), (2), or (7)" for "section 1709(b)(1), (2),
    (3), (4), or (8)".
      Subsec. (b)(4). Pub. L. 105-258, Sec. 112(b)(3), added par. (4).
    Former par. (4) redesignated (5).
      Subsec. (b)(5). Pub. L. 105-258, Sec. 112(b)(2), redesignated
    par. (4) as (5). Former par. (5) redesignated (6).
      Subsec. (b)(6). Pub. L. 105-258, Sec. 112(b)(2), (4),
    redesignated par. (5) as (6) and substituted "paragraphs (1), (2),
    (3), and (4)" for "paragraphs (1), (2), and (3)". Former par. (6)
    redesignated (7).
      Subsec. (b)(7). Pub. L. 105-258, Sec. 112(b)(2), redesignated
    par. (6) as (7).
      Subsec. (f)(1). Pub. L. 105-258, Sec. 112(c)(3), inserted at end
    "Neither the Commission nor any court shall order any person to pay
    the difference between the amount billed and agreed upon in writing
    with a common carrier or its agent and the amount set forth in any
    tariff or service contract by that common carrier for the
    transportation service provided."
      Pub. L. 105-258, Sec. 112(c)(2), which directed that "(b)(1),
    (2)" be substituted for "(b)(1), (4)", could not be executed,
    because "(b)(1), (4)" does not appear in text.
      Pub. L. 105-258, Sec. 112(c)(1), substituted "or (b)(2)" for "or
    (b)(4)".

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Amendment by Pub. L. 105-258 effective May 1, 1999, see section 2
    of Pub. L. 105-258, set out as a note under section 1701 of this
    Appendix.

-End-

-CITE-
    46 USC APPENDIX Sec. 1713                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 36 - INTERNATIONAL OCEAN COMMERCE TRANSPORTATION

-HEAD-
    Sec. 1713. Commission orders

-STATUTE-
    (a) In general
      Orders of the Commission relating to a violation of this chapter
    or a regulation issued thereunder shall be made, upon sworn
    complaint or on its own motion, only after opportunity for hearing.
    Each order of the Commission shall continue in force for the period
    of time specified in the order or until suspended, modified, or set
    aside by the Commission or a court of competent jurisdiction.
    (b) Reversal or suspension of orders
      The Commission may reverse, suspend, or modify any order made by
    it, and upon application of any party to a proceeding may grant a
    rehearing of the same or any matter determined therein. No
    rehearing may, except by special order of the Commission, operate
    as a stay of that order.
    (c) Enforcement of nonreparation orders
      In case of violation of an order of the Commission, or for
    failure to comply with a Commission subpena, the Attorney General,
    at the request of the Commission, or any party injured by the
    violation, may seek enforcement by a United States district court
    having jurisdiction over the parties. If, after hearing, the court
    determines that the order was properly made and duly issued, it
    shall enforce the order by an appropriate injunction or other
    process, mandatory or otherwise.
    (d) Enforcement of reparation orders
      (1) In case of violation of an order of the Commission for the
    payment of reparation, the person to whom the award was made may
    seek enforcement of the order in a United States district court
    having jurisdiction of the parties.
      (2) In a United States district court the findings and order of
    the Commission shall be prima facie evidence of the facts therein
    stated, and the petitioner shall not be liable for costs, nor for
    the costs of any subsequent stage of the proceedings, unless they
    accrue upon his appeal. A petitioner in a United States district
    court who prevails shall be allowed reasonable attorney's fees to
    be assessed and collected as part of the costs of the suit.
      (3) All parties in whose favor the Commission has made an award
    of reparation by a single order may be joined as plaintiffs, and
    all other parties in the order may be joined as defendants, in a
    single suit in a district in which any one plaintiff could maintain
    a suit against any one defendant. Service of process against a
    defendant not found in that district may be made in a district in
    which is located any office of, or point of call on a regular route
    operated by, that defendant. Judgment may be entered in favor of
    any plaintiff against the defendant liable to that plaintiff.
    (e) Statute of limitations
      An action seeking enforcement of a Commission order must be filed
    within 3 years after the date of the violation of the order.

-SOURCE-
    (Pub. L. 98-237, Sec. 14, Mar. 20, 1984, 98 Stat. 83.)

-End-

-CITE-
    46 USC APPENDIX Sec. 1714                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 36 - INTERNATIONAL OCEAN COMMERCE TRANSPORTATION

-HEAD-
    Sec. 1714. Reports

-STATUTE-
      The Commission may require any common carrier, or any officer,
    receiver, trustee, lessee, agent, or employee thereof, to file with
    it any periodical or special report or any account, record, rate,
    or charge, or memorandum of any facts and transactions appertaining
    to the business of that common carrier. The report, account,
    record, rate, charge, or memorandum shall be made under oath
    whenever the Commission so requires, and shall be furnished in the
    form and within the time prescribed by the Commission. Conference
    minutes required to be filed with the Commission under this section
    shall not be released to third parties or published by the
    Commission.

-SOURCE-
    (Pub. L. 98-237, Sec. 15, Mar. 20, 1984, 98 Stat. 84; Pub. L. 98-
    595, Sec. 3(b)(3), Oct. 30, 1984, 98 Stat. 3133; Pub. L. 105-258,
    title I, Sec. 113, Oct. 14, 1998, 112 Stat. 1912.)

-MISC1-
                                AMENDMENTS                            
      1998 - Pub. L. 105-258 struck out "and certificates" after
    "Reports" in section catchline, struck out "(a) Reports" before
    "The Commission", and struck out heading and text of subsec. (b).
    Text read as follows: "The Commission shall require the chief
    executive officer of each common carrier and, to the extent it
    deems feasible, may require any shipper, shippers' association,
    marine terminal operator, ocean freight forwarder, or broker to
    file a periodic written certification made under oath with the
    Commission attesting to - 
        "(1) a policy prohibiting the payment, solicitation, or receipt
      of any rebate that is unlawful under the provisions of this
      chapter;
        "(2) the fact that this policy has been promulgated recently to
      each owner, officer, employee, and agent thereof;
        "(3) the details of the efforts made within the company or
      otherwise to prevent or correct illegal rebating; and
        "(4) a policy of full cooperation with the Commission in its
      efforts to end those illegal practices.
    Whoever fails to file a certificate required by the Commission
    under this subsection is liable to the United States for a civil
    penalty of not more than $5,000 for each day the violation
    continues."
      1984 - Subsec. (b). Pub. L. 98-595 substituted "Whoever fails to
    file a certificate required by the Commission under this subsection
    is liable to the United States for" for "Failure to file a
    certificate shall result in" before "a civil penalty".

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Amendment by Pub. L. 105-258 effective May 1, 1999, see section 2
    of Pub. L. 105-258, set out as a note under section 1701 of this
    Appendix.

-End-

-CITE-
    46 USC APPENDIX Sec. 1715                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 36 - INTERNATIONAL OCEAN COMMERCE TRANSPORTATION

-HEAD-
    Sec. 1715. Exemptions

-STATUTE-
      The Commission, upon application or on its own motion, may by
    order or rule exempt for the future any class of agreements between
    persons subject to this chapter or any specified activity of those
    persons from any requirement of this chapter if it finds that the
    exemption will not result in substantial reduction in competition
    or be detrimental to commerce. The Commission may attach conditions
    to any exemption and may, by order, revoke any exemption. No order
    or rule of exemption or revocation of exemption may be issued
    unless opportunity for hearing has been afforded interested persons
    and departments and agencies of the United States.

-SOURCE-
    (Pub. L. 98-237, Sec. 16, Mar. 20, 1984, 98 Stat. 84; Pub. L. 105-
    258, title I, Sec. 114, Oct. 14, 1998, 112 Stat. 1912.)

-MISC1-
                                AMENDMENTS                            
      1998 - Pub. L. 105-258 substituted "result in substantial
    reduction in competition or be detrimental to commerce." for
    "substantially impair effective regulation by the Commission, be
    unjustly discriminatory, result in a substantial reduction in
    competition, or be detrimental to commerce."

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Amendment by Pub. L. 105-258 effective May 1, 1999, see section 2
    of Pub. L. 105-258, set out as a note under section 1701 of this
    Appendix.

-End-

-CITE-
    46 USC APPENDIX Sec. 1716                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 36 - INTERNATIONAL OCEAN COMMERCE TRANSPORTATION

-HEAD-
    Sec. 1716. Regulations

-STATUTE-
      (a) The Commission may prescribe rules and regulations as
    necessary to carry out this chapter.
      (b) The Commission may prescribe interim rules and regulations
    necessary to carry out this chapter. For this purpose, the
    Commission is excepted from compliance with the notice and comment
    requirements of section 553 of title 5. All rules and regulations
    prescribed under the authority of this subsection that are not
    earlier superseded by final rules shall expire no later than 270
    days after March 20, 1984.

-SOURCE-
    (Pub. L. 98-237, Sec. 17, Mar. 20, 1984, 98 Stat. 84.)

-MISC1-
                                REGULATIONS                            
      Pub. L. 105-258, title II, Sec. 203, Oct. 14, 1998, 112 Stat.
    1915, provided that: "Not later than March 1, 1999, the Federal
    Maritime Commission shall prescribe final regulations to implement
    the changes made by this Act [see Tables for classification]."

-End-

-CITE-
    46 USC APPENDIX Sec. 1718                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 36 - INTERNATIONAL OCEAN COMMERCE TRANSPORTATION

-HEAD-
    Sec. 1718. Ocean transportation intermediaries

-STATUTE-
    (a) License
      No person in the United States may act as an ocean transportation
    intermediary unless that person holds a license issued by the
    Commission. The Commission shall issue an intermediary's license to
    any person that the Commission determines to be qualified by
    experience and character to act as an ocean transportation
    intermediary.
    (b) Financial responsibility
      (1) No person may act as an ocean transportation intermediary
    unless that person furnishes a bond, proof of insurance, or other
    surety in a form and amount determined by the Commission to insure
    financial responsibility that is issued by a surety company found
    acceptable by the Secretary of the Treasury.
      (2) A bond, insurance, or other surety obtained pursuant to this
    section - 
        (A) shall be available to pay any order for reparation issued
      pursuant to section 1710 or 1713 of this Appendix, or any penalty
      assessed pursuant to section 1712 of this Appendix;
        (B) may be available to pay any claim against an ocean
      transportation intermediary arising from its transportation-
      related activities described in section 1702(17) of this
      Appendix with the consent of the insured ocean transportation
      intermediary and subject to review by the surety company, or when
      the claim is deemed valid by the surety company after the ocean
      transportation intermediary has failed to respond to adequate
      notice to address the validity of the claim; and
        (C) shall be available to pay any judgment for damages against
      an ocean transportation intermediary arising from its
      transportation-related activities under section 1702(17) of this
      Appendix, provided the claimant has first attempted to resolve
      the claim pursuant to subparagraph (B) of this paragraph and the
      claim has not been resolved within a reasonable period of time.

      (3) The Commission shall prescribe regulations for the purpose of
    protecting the interests of claimants, ocean transportation
    intermediaries, and surety companies with respect to the process of
    pursuing claims against ocean transportation intermediary bonds,
    insurance, or sureties through court judgments. The regulations
    shall provide that a judgment for monetary damages may not be
    enforced except to the extent that the damages claimed arise from
    the transportation-related activities of the insured ocean
    transportation intermediary, as defined by the Commission.
      (4) An ocean transportation intermediary not domiciled in the
    United States shall designate a resident agent in the United States
    for receipt of service of judicial and administrative process,
    including subpoenas.
    (c) Suspension or revocation
      The Commission shall, after notice and hearing, suspend of (!1)
    revoke a license if it finds that the ocean transportation
    intermediary is not qualified to render intermediary services or
    that it willfully failed to comply with a provision of this chapter
    or with a lawful order, rule, or regulation of the Commission. The
    Commission may also revoke an intermediary's license for failure to
    maintain a bond, proof of insurance, or other surety in accordance
    with subsection (b)(1) of this section.

    (d) Exception
      A person whose primary business is the sale of merchandise may
    forward shipments of the merchandise for its own account without a
    license.
    (e) Compensation of intermediaries by carriers
      (1) A common carrier may compensate an ocean transportation
    intermediary, as defined in section 1702(17)(A) of this Appendix,
    in connection with a shipment dispatched on behalf of others only
    when the ocean transportation intermediary has certified in writing
    that it holds a valid license, if required by subsection (a) of
    this section, and has performed the following services:
        (A) Engaged, booked, secured, reserved, or contracted directly
      with the carrier or its agent for space aboard a vessel or
      confirmed the availability of that space.
        (B) Prepared and processed the ocean bill of lading, dock
      receipt, or other similar document with respect to the shipment.

      (2) No common carrier may pay compensation for services described
    in paragraph (1) more than once on the same shipment.
      (3) No ocean transportation intermediary may receive compensation
    from a common carrier with respect to a shipment in which the
    intermediary has a direct or indirect beneficial interest nor shall
    a common carrier knowingly pay compensation on that shipment.
      (4) No conference or group of 2 or more ocean common carriers in
    the foreign commerce of the United States that is authorized to
    agree upon the level of compensation paid to an ocean
    transportation intermediary, as defined in section 1702(17)(A) of
    this Appendix, may - 
        (A) deny to any member of the conference or group the right,
      upon notice of not more than 5 calendar days, to take independent
      action on any level of compensation paid to an ocean
      transportation intermediary, as so defined; or
        (B) agree to limit the payment of compensation to an ocean
      transportation intermediary, as so defined, to less than 1.25
      percent of the aggregate of all rates and charges which are
      applicable under a tariff and which are assessed against the
      cargo on which the intermediary services are provided.

-SOURCE-
    (Pub. L. 98-237, Sec. 19, Mar. 20, 1984, 98 Stat. 87; Pub. L. 105-
    258, title I, Sec. 116, Oct. 14, 1998, 112 Stat. 1912.)

-MISC1-
                                AMENDMENTS                            
      1998 - Pub. L. 105-258, Sec. 116(1), substituted "transportation
    intermediaries" for "freight forwarders" in section catchline.
      Subsec. (a). Pub. L. 105-258, Sec. 116(2), added subsec. (a) and
    struck out heading and text of former subsec. (a). Text read as
    follows: "No person may act as an ocean freight forwarder unless
    that person holds a license issued by the Commission. The
    Commission shall issue a forwarder's license to any person that - 
        "(1) the Commission determines to be qualified by experience
      and character to render forwarding services; and
        "(2) furnishes a bond in a form and amount determined by the
      Commission to insure financial responsibility that is issued by a
      surety company found acceptable by the Secretary of the
      Treasury."
      Subsec. (b). Pub. L. 105-258, Sec. 116(4), added subsec. (b).
    Former subsec. (b) redesignated (c).
      Subsec. (c). Pub. L. 105-258, Sec. 116(6), substituted "a bond,
    proof of insurance, or other surety in accordance with subsection
    (b)(1) of this section." for "a bond in accordance with subsection
    (a)(2) of this section."
      Pub. L. 105-258, Sec. 116(5)(D), substituted "intermediary
    services" for "forwarding services" in first sentence.
      Pub. L. 105-258, Sec. 116(5)(B), substituted "an intermediary's"
    for "a forwarder's" in second sentence.
      Pub. L. 105-258, Sec. 116(5)(A), substituted "transportation
    intermediary" for "freight forwarder" in first sentence.
      Pub. L. 105-258, Sec. 116(3), redesignated subsec. (b) as (c).
    Former subsec. (c) redesignated (d).
      Subsec. (d). Pub. L. 105-258, Sec. 116(3), redesignated subsec.
    (c) as (d). Former subsec. (d) redesignated (e).
      Subsec. (e). Pub. L. 105-258, Sec. 116(3), (7), redesignated
    subsec. (d) as (e) and substituted "intermediaries" for
    "forwarders" in heading.
      Subsec. (e)(1). Pub. L. 105-258, Sec. 116(9), substituted
    "license, if required by subsection (a) of this section," for
    "license" in introductory provisions.
      Pub. L. 105-258, Sec. 116(8), substituted "an ocean
    transportation intermediary, as defined in section 1702(17)(A) of
    this Appendix," for "an ocean transportation intermediary" in
    introductory provisions.
      Pub. L. 105-258, Sec. 116(5)(A), substituted "transportation
    intermediary" for "freight forwarder" in two places in introductory
    provisions.
      Subsec. (e)(3). Pub. L. 105-258, Sec. 116(10), redesignated par.
    (4) as (3) and struck out former par. (3) which read as follows:
    "No compensation may be paid to an ocean transportation
    intermediary except in accordance with the tariff requirements of
    this chapter."
      Pub. L. 105-258, Sec. 116(5)(A), substituted "transportation
    intermediary" for "freight forwarder".
      Subsec. (e)(4). Pub. L. 105-258, Sec. 116(11), added par. (4).
    Former par. (4) redesignated (3).
      Pub. L. 105-258, Sec. 116(5)(C), substituted "intermediary has"
    for "forwarder has".
      Pub. L. 105-258, Sec. 116(5)(A), substituted "transportation
    intermediary" for "freight forwarder".

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Amendment by Pub. L. 105-258 effective May 1, 1999, see section 2
    of Pub. L. 105-258, set out as a note under section 1701 of this
    Appendix.

-FOOTNOTE-
    (!1) So in original. Probably should be "or".

-End-

-CITE-
    46 USC APPENDIX Sec. 1719                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 36 - INTERNATIONAL OCEAN COMMERCE TRANSPORTATION

-HEAD-
    Sec. 1719. Contracts, agreements, and licenses under prior shipping
      legislation

-STATUTE-
    (a) to (c) Omitted
    (d) Effects on certain agreements and contracts
      All agreements, contracts, modifications, licenses, and
    exemptions previously issued, approved, or effective under the
    Shipping Act, 1916, or the Shipping Act of 1984, shall continue in
    force and effect as if issued or effective under this Act, as
    amended by the Ocean Shipping Reform Act of 1998, and all new
    agreements, contracts, and modifications to existing, pending, or
    new contracts or agreements shall be considered under this Act, as
    amended by the Ocean Shipping Reform Act of 1998.
    (e) Savings provisions
      (1) Each service contract entered into by a shipper and an ocean
    common carrier or conference before March 20, 1984, may remain in
    full force and effect and need not comply with the requirements of
    section 1707(c) of this Appendix until 15 months after March 20,
    1984.
      (2) This Act and the amendments made by it shall not affect any
    suit - 
        (A) filed before March 20, 1984; or
        (B) with respect to claims arising out of conduct engaged in
      before March 20, 1984, filed within 1 year after March 20, 1984.

      (3) The Ocean Shipping Reform Act of 1998 shall not affect any
    suit - 
        (A) filed before the effective date of that Act; or
        (B) with respect to claims arising out of conduct engaged in
      before the effective date of that Act filed within 1 year after
      the effective date of that Act.

      (4) Regulations issued by the Federal Maritime Commission shall
    remain in force and effect where not inconsistent with this Act, as
    amended by the Ocean Shipping Reform Act of 1998.

-SOURCE-
    (Pub. L. 98-237, Sec. 20, Mar. 20, 1984, 98 Stat. 90; Pub. L. 105-
    258, title I, Sec. 117, Oct. 14, 1998, 112 Stat. 1914.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Shipping Act, 1916, referred to in subsec. (d), is act Sept.
    7, 1916, ch. 451, 39 Stat. 728, as amended, which is classified
    generally to chapter 23 (Sec. 801 et seq.) of this Appendix. For
    complete classification of this Act to the Code, see section 842 of
    this Appendix and Tables.
      The Shipping Act of 1984 and this Act and the amendments made by
    it, referred to in text, is Pub. L. 98-237, Mar. 20, 1984, 98 Stat.
    67, as amended, which is classified principally to this chapter
    (Sec. 1701 et seq.). For complete classification of this Act to the
    Code, see Short Title note set out under section 1701 of this
    Appendix and Tables.
      The Ocean Shipping Reform Act of 1998, referred to in subsecs.
    (d) and (e)(3), (4), is Pub. L. 105-258, Oct. 14, 1998, 112 Stat.
    1902. For the effective date of this Act, see section 2 of Pub. L.
    105-258, set out as an Effective Date of 1998 Amendment note under
    section 1701 of this Appendix. For complete classification of this
    Act to the Code, see Short Title of 1998 Amendment note set out
    under section 1701 of this Appendix and Tables.

-COD-
                               CODIFICATION                           
      Section is comprised of subsecs. (d) and (e) of section 20 of
    Pub. L. 98-237. Subsecs. (a) to (c) of section 20 amended sections
    801, 812, 814, 815, 816, 817, 819, 820, 821, 824, 828, 829, 830,
    831, 841c, 1122, and 1124 of this Appendix and repealed sections
    813, 813a, 825, and 841b of this Appendix and provisions set out as
    a note under section 801 of this Appendix.

-MISC1-
                                AMENDMENTS                            
      1998 - Subsec. (d). Pub. L. 105-258, Sec. 117(1), added subsec.
    (d) and struck out heading and text of former subsec. (d). Text
    read as follows: "All agreements, contracts, modifications, and
    exemptions previously approved or licenses previously issued by the
    Commission shall continue in force and effect as if approved or
    issued under this chapter; and all new agreements, contracts, and
    modifications to existing, pending, or new contracts or agreements
    shall be considered under this chapter."
      Subsec. (e)(3), (4). Pub. L. 105-258, Sec. 117(2), added pars.
    (3) and (4).

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Amendment by Pub. L. 105-258 effective May 1, 1999, see section 2
    of Pub. L. 105-258, set out as a note under section 1701 of this
    Appendix.

-End-

-CITE-
    46 USC APPENDIX CHAPTER 37 - INTERNATIONAL
           MARITIME AND PORT SECURITY                      01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 37 - INTERNATIONAL MARITIME AND PORT SECURITY

-HEAD-
           CHAPTER 37 - INTERNATIONAL MARITIME AND PORT SECURITY       

-MISC1-
    Sec.                                                     
    1801.       International measures for seaport and shipboard
                 security.                                            
    1802.       Threat of terrorism to United States ports and
                 vessels.                                             
    1803.       Security standards at foreign ports.                  
                  (a)  Assessment of security measures.               
                  (b)  Consultation with Secretary of State.          
                  (c)  Report of assessments.                         
                  (d)  Determination and notification to foreign
                        country.                                      
                  (e)  Antiterrorism assistance related to maritime
                        security.                                     
    1804.       Travel advisories concerning security at foreign
                 ports.                                               
                  (a)  Travel advisory.                               
                  (b)  Lifting of travel advisory.                    
                  (c)  Notification to Congress.                      
    1805.       Suspension of passenger service.                      
                  (a)  President's determination.                     
                  (b)  Prohibition.                                   
                  (c)  Penalty.                                       
    1806.       Sanctions for seizure of vessels by terrorists.       
    1807.       Definitions.                                          
    1808.       Authorization of appropriations.                      
    1809.       Reports.                                              
                  (a)  Consolidation.                                 
                  (b)  Submission to committees.                      

-End-

-CITE-
    46 USC APPENDIX Sec. 1801                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 37 - INTERNATIONAL MARITIME AND PORT SECURITY

-HEAD-
    Sec. 1801. International measures for seaport and shipboard
      security

-STATUTE-
      The Congress encourages the President to continue to seek
    agreement through the International Maritime Organization on
    matters of international seaport and shipboard security, and
    commends him on his efforts to date. In developing such agreement,
    each member country of the International Maritime Organization
    should consult with appropriate private sector interests in that
    country. Such agreement would establish seaport and vessel security
    measures and could include - 
        (1) seaport screening of cargo and baggage similar to that done
      at airports;
        (2) security measures to restrict access to cargo, vessels, and
      dockside property to authorized personnel only;
        (3) additional security on board vessels;
        (4) licensing or certification of compliance with appropriate
      security standards; and
        (5) other appropriate measures to prevent unlawful acts against
      passengers and crews on board vessels.

-SOURCE-
    (Pub. L. 99-399, title IX, Sec. 902, Aug. 27, 1986, 100 Stat. 889.)

-MISC1-
                                SHORT TITLE                            
      Section 901 of title IX of Pub. L. 99-399 provided that: "This
    title [enacting this chapter and section 1226 of Title 33,
    Navigation and Navigable Waters, and enacting provisions set out as
    notes below] may be cited as the 'International Maritime and Port
    Security Act'."

     MEASURES TO PREVENT UNLAWFUL ACTS AGAINST PASSENGERS AND CREWS ON
                                BOARD SHIPS
      Section 903 of Pub. L. 99-399 provided that:
      "(a) Report on Progress of IMO. - The Secretary of Transportation
    and the Secretary of State, jointly, shall report to the Congress
    by February 28, 1987, on the progress of the International Maritime
    Organization in developing recommendations on Measures to Prevent
    Unlawful Acts Against Passengers and Crews On Board Ships.
      "(b) Content of Report. - The report required by subsection (a)
    shall include the following information - 
        "(1) the specific areas of agreement and disagreement on the
      recommendations among the member nations of the International
      Maritime Organization;
        "(2) the activities of the Maritime Safety Committee, the
      Facilitation Committee, and the Legal Committee of the
      International Maritime Organization in regard to the proposed
      recommendations; and
        "(3) the security measures specified in the recommendations.
      "(c) Security Measures at United States Ports. - If the member
    nations of the International Maritime Organization have not
    finalized and accepted the proposed recommendations by February 28,
    1987, the Secretary of Transportation shall include in the report
    required by this section a proposed plan of action (including
    proposed legislation if necessary) for the implementation of
    security measures at United States ports and on vessels operating
    from those ports based on the assessment of threat from acts of
    terrorism reported by the Secretary of Transportation under section
    905 [46 App. U.S.C. 1802]."

                           PANAMA CANAL SECURITY                       
      Section 904 of Pub. L. 99-399 provided that: "Not later than 6
    months after the date of enactment of this Act [Aug. 27, 1986], the
    President shall report to the Congress on the status of physical
    security at the Panama Canal with respect to the threat of
    terrorism."

-End-

-CITE-
    46 USC APPENDIX Sec. 1802                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 37 - INTERNATIONAL MARITIME AND PORT SECURITY

-HEAD-
    Sec. 1802. Threat of terrorism to United States ports and vessels

-STATUTE-
      Not later than February 28, 1987, and annually thereafter, the
    Secretary of Transportation shall report to the Congress on the
    threat from acts of terrorism to United States ports and vessels
    operating from those ports. Beginning with the first report
    submitted under this section after the date of enactment of the
    Maritime Transportation Security Act of 2002 [November 25, 2002],
    the Secretary shall include a description of activities undertaken
    under title I of that Act and an analysis of the effect of those
    activities on port security against acts of terrorism.

-SOURCE-
    (Pub. L. 99-399, title IX, Sec. 905, Aug. 27, 1986, 100 Stat. 890;
    Pub. L. 107-295, title I, Sec. 110(a), Nov. 25, 2002, 116 Stat.
    2091.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Maritime Transportation Security Act of 2002, referred to in
    text, is Pub. L. 107-295, Nov. 25, 2002, 116 Stat. 2064. Title I of
    the Act enacted subtitle VI of Title 46, Shipping, amended this
    section, sections 661 and 724 of Title 14, Coast Guard, section
    1431a of Title 19, Customs Duties, sections 1226, 1501 to 1504,
    1507, and 1520 of Title 33, Navigation and Navigable Waters, and
    sections 192 and 195 of Title 50, War and National Defense, enacted
    provisions set out as notes under sections 1226 and 1504 of Title
    33 and sections 70101, 70103, 70104, 70111, 70114, and 70116 of
    Title 46, amended provisions set out as a note under section 2071
    of Title 19, and repealed provisions set out as a note under
    section 2071 of Title 19. For complete classification of title I to
    the Code, see Tables.

-MISC1-
                                AMENDMENTS                            
      2002 - Pub. L. 107-295 inserted at end "Beginning with the first
    report submitted under this section after the date of enactment of
    the Maritime Transportation Security Act of 2002, the Secretary
    shall include a description of activities undertaken under title I
    of that Act and an analysis of the effect of those activities on
    port security against acts of terrorism."

-End-

-CITE-
    46 USC APPENDIX Sec. 1803                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 37 - INTERNATIONAL MARITIME AND PORT SECURITY

-HEAD-
    Sec. 1803. Security standards at foreign ports

-STATUTE-
    (a) Assessment of security measures
      The Secretary of Transportation shall develop and implement a
    plan to assess the effectiveness of the security measures
    maintained at those foreign ports which the Secretary, in
    consultation with the Secretary of State, determines pose a high
    risk of acts of terrorism directed against passenger vessels.
    (b) Consultation with Secretary of State
      In carrying out subsection (a) of this section, the Secretary of
    Transportation shall consult the Secretary of State with respect to
    the terrorist threat which exists in each country and poses a high
    risk of acts of terrorism directed against passenger vessels.
    (c) Report of assessments
      Not later than 6 months after August 27, 1986, the Secretary of
    Transportation shall report to the Congress on the plan developed
    pursuant to subsection (a) of this section and how the Secretary
    will implement the plan.
    (d) Determination and notification to foreign country
      If, after implementing the plan in accordance with subsection (a)
    of this section, the Secretary of Transportation determines that a
    port does not maintain and administer effective security measures,
    the Secretary of State (after being informed by the Secretary of
    Transportation) shall notify the appropriate government authorities
    of the country in which the port is located of such determination,
    and shall recommend the steps necessary to bring the security
    measures in use at that port up to the standard used by the
    Secretary of Transportation in making such assessment.
    (e) Antiterrorism assistance related to maritime security
      The President is encouraged to provide antiterrorism assistance
    related to maritime security under chapter 8 of part II of the
    Foreign Assistance Act of 1961 [22 U.S.C. 2349aa et seq.] to
    foreign countries, especially with respect to a port which the
    Secretary of Transportation determines under subsection (d) of this
    section does not maintain and administer effective security
    measures.

-SOURCE-
    (Pub. L. 99-399, title IX, Sec. 907, Aug. 27, 1986, 100 Stat. 891.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Foreign Assistance Act of 1961, referred to in subsec. (e),
    is Pub. L. 97-195, Sept. 4, 1961, 75 Stat. 424, as amended. Chapter
    8 of part II of that Act is classified generally to part VIII (Sec.
    2349aa et seq.) of subchapter II of chapter 32 of Title 22, Foreign
    Relations and Intercourse. For complete classification of this Act
    to the Code, see Short Title note set out under section 2151 of
    Title 22 and Tables.

-End-

-CITE-
    46 USC APPENDIX Sec. 1804                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 37 - INTERNATIONAL MARITIME AND PORT SECURITY

-HEAD-
    Sec. 1804. Travel advisories concerning security at foreign ports

-STATUTE-
    (a) Travel advisory
      Upon being notified by the Secretary of Transportation that the
    Secretary has determined that a condition exists that threatens the
    safety or security of passengers, passenger vessels, or crew
    traveling to or from a foreign port which the Secretary of
    Transportation has determined pursuant to section 1803(d) of this
    Appendix to be a port which does not maintain and administer
    effective security measures, the Secretary of State shall
    immediately issue a travel advisory with respect to that port. The
    Secretary of State shall take the necessary steps to widely
    publicize that travel advisory.
    (b) Lifting of travel advisory
      The travel advisory required to be issued under subsection (a) of
    this section may be lifted only if the Secretary of Transportation,
    in consultation with the Secretary of State, has determined that
    effective security measures are maintained and administered at the
    port with respect to which the Secretary of Transportation had made
    the determination described in section 1803(d) of this Appendix.
    (c) Notification to Congress
      The Secretary of State shall immediately notify the Congress of
    any change in the status of a travel advisory imposed pursuant to
    this section.

-SOURCE-
    (Pub. L. 99-399, title IX, Sec. 908, Aug. 27, 1986, 100 Stat. 891;
    Pub. L. 105-277, div. G, title XXII, Sec. 2224(b), Oct. 21, 1998,
    112 Stat. 2681-819.)

-MISC1-
                                AMENDMENTS                            
      1998 - Subsec. (a). Pub. L. 105-277 struck out second sentence
    which read as follows: "Any travel advisory issued pursuant to this
    subsection shall be published in the Federal Register."

-End-

-CITE-
    46 USC APPENDIX Sec. 1805                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 37 - INTERNATIONAL MARITIME AND PORT SECURITY

-HEAD-
    Sec. 1805. Suspension of passenger service

-STATUTE-
    (a) President's determination
      Whenever the President determines that a foreign nation permits
    the use of territory under its jurisdiction as a base of operations
    or training for, or as a sanctuary for, or in any way arms, aids,
    or abets, any terrorist or terrorist group which knowingly uses the
    illegal seizure of passenger vessels or the threat thereof as an
    instrument of policy, the President may, without notice or hearing
    and for as long as the President determines necessary to assure the
    security of passenger vessels against unlawful seizure, suspend the
    right of any passenger vessel common carrier to operate to and
    from, and the right of any passenger vessel of the United States to
    utilize, any port in that foreign nation for passenger service.
    (b) Prohibition
      It shall be unlawful for any passenger vessel common carrier, or
    any passenger vessel of the United States, to operate in violation
    of the suspension of rights by the President under this section.
    (c) Penalty
      (1) If a person operates a vessel in violation of this section,
    the Secretary of the department in which the Coast Guard is
    operating may deny the vessels of that person entry to United
    States ports.
      (2) A person violating this section is liable to the United
    States Government for a civil penalty of not more than $50,000.
    Each day a vessel utilizes a prohibited port shall be a separate
    violation of this section.

-SOURCE-
    (Pub. L. 99-399, title IX, Sec. 909, Aug. 27, 1986, 100 Stat. 892.)

-TRANS-
                           TRANSFER OF FUNCTIONS                       
      For transfer of authorities, functions, personnel, and assets of
    the Coast Guard, including the authorities and functions of the
    Secretary of Transportation relating thereto, to the Department of
    Homeland Security, and for treatment of related references, see
    sections 468(b), 551(d), 552(d), and 557 of Title 6, Domestic
    Security, and the Department of Homeland Security Reorganization
    Plan of November 25, 2002, as modified, set out as a note under
    section 542 of Title 6.

-End-

-CITE-
    46 USC APPENDIX Sec. 1806                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 37 - INTERNATIONAL MARITIME AND PORT SECURITY

-HEAD-
    Sec. 1806. Sanctions for seizure of vessels by terrorists

-STATUTE-
      The Congress encourages the President - 
        (1) to review the adequacy of domestic and international
      sanctions against terrorists who seize or attempt to seize
      vessels; and
        (2) to strengthen where necessary, through bilateral and
      multilateral efforts, the effectiveness of such sanctions.

    Not later than one year after August 27, 1986, the President shall
    submit a report to the Congress which includes the review of such
    sanctions and the efforts to improve such sanctions.

-SOURCE-
    (Pub. L. 99-399, title IX, Sec. 910, Aug. 27, 1986, 100 Stat. 892.)

-End-

-CITE-
    46 USC APPENDIX Sec. 1807                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 37 - INTERNATIONAL MARITIME AND PORT SECURITY

-HEAD-
    Sec. 1807. Definitions

-STATUTE-
      For purposes of this chapter - 
        (1) the term "common carrier" has the same meaning given such
      term in section 1702(6) of this Appendix; and
        (2) the terms "passenger vessel" and "vessel of the United
      States" have the same meaning given such terms in section 2101 of
      title 46.

-SOURCE-
    (Pub. L. 99-399, title IX, Sec. 911, Aug. 27, 1986, 100 Stat. 892.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This chapter, referred to in text, was in the original "this
    title", meaning title IX of Pub. L. 99-399, Aug. 27, 1986, 100
    Stat. 889, known as the International Maritime and Port Security
    Act, which enacted this chapter and section 1226 of Title 33,
    Navigation and Navigable Waters, and enacted provisions set out as
    notes under section 1801 of this Appendix. For complete
    classification of title IX to the Code, see Short Title note set
    out under section 1801 of this Appendix and Tables.

-End-

-CITE-
    46 USC APPENDIX Sec. 1808                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 37 - INTERNATIONAL MARITIME AND PORT SECURITY

-HEAD-
    Sec. 1808. Authorization of Appropriations

-STATUTE-
      There are authorized to be appropriated $12,500,000 for each of
    the fiscal years 1987 through 1991, to be available to the
    Secretary of Transportation to carry out this chapter.

-SOURCE-
    (Pub. L. 99-399, title IX, Sec. 912, Aug. 27, 1986, 100 Stat. 892.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This chapter, referred to in text, was in the original "this
    title", meaning title IX of Pub. L. 99-399, Aug. 27, 1986, 100
    Stat. 889, known as the International Maritime and Port Security
    Act, which enacted this chapter and section 1226 of Title 33,
    Navigation and Navigable Waters, and enacted provisions set out as
    notes under section 1801 of this Appendix. For complete
    classification of title IX to the Code, see Short Title note set
    out under section 1801 of this Appendix and Tables.

-End-

-CITE-
    46 USC APPENDIX Sec. 1809                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 37 - INTERNATIONAL MARITIME AND PORT SECURITY

-HEAD-
    Sec. 1809. Reports

-STATUTE-
    (a) Consolidation
      To the extent practicable, the reports required under sections
    903, 905, and 907 [46 App. U.S.C. 1801 note, 1802, 1803] shall be
    consolidated into a single document before being submitted to the
    Congress. Any classified material in those reports shall be
    submitted separately as an addendum to the consolidated report.
    (b) Submission to committees
      The reports required to be submitted to the Congress under this
    chapter shall be submitted to the Committee on Foreign Affairs and
    the Committee on Transportation and Infrastructure of the House of
    Representatives and the Committee on Foreign Relations and the
    Committee on Commerce, Science and Transportation of the Senate.

-SOURCE-
    (Pub. L. 99-399, title IX, Sec. 913, Aug. 27, 1986, 100 Stat. 892;
    Pub. L. 107-295, title IV, Sec. 408(c)(3), Nov. 25, 2002, 116 Stat.
    2117.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Sections 903, 905, and 907, referred to in subsec. (a), are
    sections 903, 905, and 907 of Pub. L. 99-399, which enacted a
    provision set out as a note under section 1801 of this Appendix and
    sections 1802 and 1803 of this Appendix, respectively.
      This chapter, referred to in subsec. (b), was in the original
    "this title", meaning title IX of Pub. L. 99-399, Aug. 27, 1986,
    100 Stat. 889, known as the International Maritime and Port
    Security Act, which enacted this chapter and section 1226 of Title
    33, Navigation and Navigable Waters, and enacted provisions set out
    as notes under section 1801 of this Appendix. For complete
    classification of title IX to the Code, see Short Title note set
    out under section 1801 of this Appendix and Tables.

-MISC1-
                                AMENDMENTS                            
      2002 - Subsec. (b). Pub. L. 107-295 substituted "Transportation
    and Infrastructure" for "Merchant Marine and Fisheries".

-CHANGE-
                              CHANGE OF NAME                          
      Committee on Foreign Affairs of House of Representatives treated
    as referring to Committee on International Relations of House of
    Representatives by section 1(a) of Pub. L. 104-14, set out as a
    note preceding section 21 of Title 2, The Congress.

-End-

-CITE-
    46 USC APPENDIX CHAPTER 38 - MARITIME DRUG LAW
           ENFORCEMENT                                     01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 38 - MARITIME DRUG LAW ENFORCEMENT

-HEAD-
                CHAPTER 38 - MARITIME DRUG LAW ENFORCEMENT            

-MISC1-
    Sec.                                                     
    1901.       Short title.                                          
    1902.       Congressional declaration of findings.                
    1903.       Manufacture, distribution, or possession with intent
                 to manufacture or distribute controlled substances on
                 board vessels.                                       
                  (a)  Vessels of United States or vessels subject to
                        jurisdiction of United States.                
                  (b)  "Vessel of the United States" defined.         
                  (c)  "Vessel subject to the jurisdiction of the
                        United States" and "vessel without
                        nationality" defined; claim of nationality or
                        registry.                                     
                  (d)  Claim of failure to comply with international
                        law; standing; jurisdiction of court.         
                  (e)  Exception; burden of proof.                    
                  (f)  Jurisdiction and venue.                        
                  (g)  Penalties.                                     
                  (h)  Extension beyond territorial jurisdiction of
                        United States.                                
                  (i)  Definitions of drug abuse terms.               
                  (j)  Attempt or conspiracy to commit offense.       
    1904.       Seizure or forfeiture of property.                    

-End-

-CITE-
    46 USC APPENDIX Sec. 1901                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 38 - MARITIME DRUG LAW ENFORCEMENT

-HEAD-
    Sec. 1901. Short title

-STATUTE-
      This chapter may be cited as the "Maritime Drug Law Enforcement
    Act".

-SOURCE-
    (Pub. L. 96-350, Sec. 1, Sept. 15, 1980, 94 Stat. 1159; Pub. L. 99-
    570, title III, Sec. 3202, Oct. 27, 1986, 100 Stat. 3207-95; Pub.
    L. 99-640, Sec. 17, Nov. 10, 1986, 100 Stat. 3552.)

-COD-
                               CODIFICATION                           
      Section was formerly classified to section 955a of Title 21, Food
    and Drugs.

-MISC1-
                                AMENDMENTS                            
      1986 - Pub. L. 99-570 and Pub. L. 99-640 generally amended
    section identically, substituting provisions relating to short
    title for provisions relating to manufacture, distribution, or
    possession with intent to manufacture or distribute controlled
    substances on board vessels.

                       SHORT TITLE OF 1986 AMENDMENT                   
      Section 3201 of title III of Pub. L. 99-570 provided that: "This
    subtitle [subtitle C (Secs. 3201, 3202) of title III of Pub. L. 99-
    570, amending this chapter] may be cited as the 'Maritime Drug Law
    Enforcement Prosecution Improvements Act of 1986'."

-End-

-CITE-
    46 USC APPENDIX Sec. 1902                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 38 - MARITIME DRUG LAW ENFORCEMENT

-HEAD-
    Sec. 1902. Congressional declaration of findings

-STATUTE-
      The Congress finds and declares that trafficking in controlled
    substances aboard vessels is a serious international problem and is
    universally condemned. Moreover, such trafficking presents a
    specific threat to the security and societal well-being of the
    United States.

-SOURCE-
    (Pub. L. 96-350, Sec. 2, Sept. 15, 1980, 94 Stat. 1160; Pub. L. 99-
    307, Sec. 7, May 19, 1986, 100 Stat. 447; Pub. L. 99-570, title
    III, Sec. 3202, Oct. 27, 1986, 100 Stat. 3207-95; Pub. L. 99-640,
    Sec. 17, Nov. 10, 1986, 100 Stat. 3552.)

-COD-
                               CODIFICATION                           
      Section was formerly classified to section 955b of Title 21, Food
    and Drugs.

-MISC1-
                                AMENDMENTS                            
      1986 - Pub. L. 99-570 and Pub. L. 99-640 generally amended
    section identically, substituting provisions relating to
    Congressional declaration of findings for provisions relating to
    definitions.
      Subsec. (a). Pub. L. 99-307 inserted provision that an event
    otherwise qualifying as an arrangement not lose that qualification
    by the fact that consent to, or the terms of, such arrangement are
    communicated by radio, telephone, or other similar means, or by how
    specific such arrangement is as to the vessel to which such
    arrangement applies.

          INTERDICTION PROCEDURES FOR VESSELS OF FOREIGN REGISTRY      
      Section 2015 of Pub. L. 99-570, as amended by Pub. L. 100-690,
    title IV, Sec. 4802(a)(1), Nov. 18, 1988, 102 Stat. 4294, provided
    for interdiction procedures for vessels of foreign registry, prior
    to repeal by Pub. L. 103-447, title I, Sec. 103(c), Nov. 2, 1994,
    108 Stat. 4694.

-End-

-CITE-
    46 USC APPENDIX Sec. 1903                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 38 - MARITIME DRUG LAW ENFORCEMENT

-HEAD-
    Sec. 1903. Manufacture, distribution, or possession with intent to
      manufacture or distribute controlled substances on board vessels

-STATUTE-
    (a) Vessels of United States or vessels subject to jurisdiction of
      United States
      It is unlawful for any person on board a vessel of the United
    States, or on board a vessel subject to the jurisdiction of the
    United States, or who is a citizen of the United States or a
    resident alien of the United States on board any vessel, to
    knowingly or intentionally manufacture or distribute, or to possess
    with intent to manufacture or distribute, a controlled substance.
    (b) "Vessel of the United States" defined
      For purposes of this section, a "vessel of the United States"
    means - 
        (1) a vessel documented under chapter 121 of title 46 or a
      vessel numbered as provided in chapter 123 of that title;
        (2) a vessel owned in whole or part by - 
          (A) the United States or a territory, commonwealth, or
        possession of the United States;
          (B) a State or political subdivision thereof;
          (C) a citizen or national of the United States; or
          (D) a corporation created under the laws of the United States
        or any State, the District of Columbia, or any territory,
        commonwealth, or possession of the United States;

      unless the vessel has been granted the nationality of a foreign
      nation in accordance with article 5 of the 1958 Convention on the
      High Seas and a claim of nationality or registry for the vessel
      is made by the master or individual in charge at the time of the
      enforcement action by an officer or employee of the United States
      authorized to enforce applicable provisions of United States law;
      and
        (3) a vessel that was once documented under the laws of the
      United States and, in violation of the laws of the United States,
      was either sold to a person not a citizen of the United States or
      placed under foreign registry or a foreign flag, whether or not
      the vessel has been granted the nationality of a foreign nation.
    (c) "Vessel subject to the jurisdiction of the United States" and
      "vessel without nationality" defined; claim of nationality or
      registry
      (1) For purposes of this section, a "vessel subject to the
    jurisdiction of the United States" includes - 
        (A) a vessel without nationality;
        (B) a vessel assimilated to a vessel without nationality, in
      accordance with paragraph (2) of article 6 of the 1958 Convention
      on the High Seas;
        (C) a vessel registered in a foreign nation where the flag
      nation has consented or waived objection to the enforcement of
      United States law by the United States;
        (D) a vessel located within the customs waters of the United
      States;
        (E) a vessel located in the territorial waters of another
      nation, where the nation consents to the enforcement of United
      States law by the United States; and
        (F) a vessel located in the contiguous zone of the United
      States, as defined in Presidential Proclamation 7219 of September
      2, 1999, and (i) is entering the United States, (ii) has departed
      the United States, or (iii) is a hovering vessel as defined in
      section 1401 of title 19.

    Consent or waiver of objection by a foreign nation to the
    enforcement of United States law by the United States under
    subparagraph (C) or (E) of this paragraph may be obtained by radio,
    telephone, or similar oral or electronic means, and is conclusively
    proved by certification of the Secretary of State or the
    Secretary's designee.
      (2) For purposes of this section, a "vessel without nationality"
    includes - 
        (A) a vessel aboard which the master or person in charge makes
      a claim of registry, which claim is denied by the flag nation
      whose registry is claimed;
        (B) any vessel aboard which the master or person in charge
      fails, upon request of an officer of the United States empowered
      to enforce applicable provisions of United States law, to make a
      claim of nationality or registry for that vessel; and
        (C) a vessel aboard which the master or person in charge makes
      a claim of registry and the claimed nation of registry does not
      affirmatively and unequivocally assert that the vessel is of its
      nationality.

    A claim of registry under subparagraph (A) or (C) may be verified
    or denied by radio, telephone, or similar oral or electronic means.
    The denial of such claim of registry by the claimed flag nation is
    conclusively proved by certification of the Secretary of State or
    the Secretary's designee.
      (3) For purposes of this section, a claim of nationality or
    registry only includes:
        (A) possession on board the vessel and production of documents
      evidencing the vessel's nationality in accordance with article 5
      of the 1958 Convention on the High Seas;
        (B) flying its flag nation's ensign or flag; or
        (C) a verbal claim of nationality or registry by the master or
      person in charge of the vessel.
    (d) Claim of failure to comply with international law; standing;
      jurisdiction of court
      Any person charged with a violation of this section shall not
    have standing to raise the claim of failure to comply with
    international law as a basis for a defense. A claim of failure to
    comply with international law in the enforcement of this chapter
    may be invoked solely by a foreign nation, and a failure to comply
    with international law shall not divest a court of jurisdiction or
    otherwise constitute a defense to any proceeding under this
    chapter.
    (e) Exception; burden of proof
      This section does not apply to a common or contract carrier or an
    employee thereof, who possesses or distributes a controlled
    substance in the lawful and usual course of the carrier's business
    or to a public vessel of the United States, or any person on board
    such a vessel who possesses or distributes a controlled substance
    in the lawful course of such person's duties, if the controlled
    substance is a part of the cargo entered in the vessel's manifest
    and is intended to be lawfully imported into the country of
    destination for scientific, medical, or other legitimate purposes.
    It shall not be necessary for the United States to negative the
    exception set forth in this subsection in any complaint,
    information, indictment, or other pleading or in any trial or other
    proceeding. The burden of going forward with the evidence with
    respect to this exception is upon the person claiming its benefit.
    (f) Jurisdiction and venue
      Any person who violates this section shall be tried in the United
    States district court at the point of entry where that person
    enters the United States, or in the United States District Court of
    the District of Columbia. Jurisdiction of the United States with
    respect to vessels subject to this chapter is not an element of any
    offense. All jurisdictional issues arising under this chapter are
    preliminary questions of law to be determined solely by the trial
    judge.
    (g) Penalties
      (1) Any person who commits an offense defined in this section
    shall be punished in accordance with the penalties set forth in
    section 1010 of the Comprehensive Drug Abuse Prevention and Control
    Act of 1970 (21 U.S.C. 960).
      (2) Notwithstanding paragraph (1) of this subsection, any person
    convicted of an offense under this chapter shall be punished in
    accordance with the penalties set forth in section 1012 of the
    Comprehensive Drug Abuse Prevention and Control Act of 1970 (21
    U.S.C. 962) if such offense is a second or subsequent offense as
    defined in section 1012(b) of that Act.
    (h) Extension beyond territorial jurisdiction of United States
      This section is intended to reach acts of possession,
    manufacture, or distribution committed outside the territorial
    jurisdiction of the United States.
    (i) Definitions of drug abuse terms
      The definitions in the Comprehensive Drug Abuse Prevention and
    Control Act of 1970 (21 U.S.C. 802) apply to terms used in this
    chapter.
    (j) Attempt or conspiracy to commit offense
      Any person who attempts or conspires to commit any offense
    defined in this chapter shall be subject to the same penalties as
    those prescribed for the offense, the commission of which was the
    object of the attempt or conspiracy.

-SOURCE-
    (Pub. L. 96-350, Sec. 3, Sept. 15, 1980, 94 Stat. 1160; Pub. L. 99-
    570, title III, Sec. 3202, Oct. 27, 1986, 100 Stat. 3207-95; Pub.
    L. 99-640, Sec. 17, Nov. 10, 1986, 100 Stat. 3552; Pub. L. 100-690,
    title VII, Sec. 7402, Nov. 18, 1988, 102 Stat. 4483; Pub. L. 101-
    647, title XII, Sec. 1203, Nov. 29, 1990, 104 Stat. 4830; Pub. L.
    104-324, title XI, Sec. 1138, Oct. 19, 1996, 110 Stat. 3988; Pub.
    L. 107-295, title IV, Sec. 418(a), Nov. 25, 2002, 116 Stat. 2123.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Presidential Proclamation 7219 of September 2, 1999, referred to
    in subsec. (c)(1)(F), is set out as a note under section 1331 of
    Title 43, Public Lands.
      The Comprehensive Drug Abuse Prevention and Control Act of 1970,
    referred to in subsec. (i), is Pub. L. 91-513, Oct. 27, 1970, 84
    Stat. 1236, as amended, which is classified principally to chapter
    13 (Sec. 801 et seq.) of Title 21, Food and Drugs. Section 802 of
    Title 21 contains provisions relating to definitions used in title
    II (21 U.S.C. 801 et seq.) of the Comprehensive Drug Abuse
    Prevention and Control Act of 1970. For complete classification of
    this Act to the Code, see Short Title note set out under section
    801 of Title 21 and Tables.

-COD-
                               CODIFICATION                           
      Section was formerly classified to section 955c of Title 21, Food
    and Drugs.

-MISC1-
                                AMENDMENTS                            
      2002 - Subsec. (c)(1)(F). Pub. L. 107-295 added subpar. (F).
      1996 - Subsec. (c)(1). Pub. L. 104-324, Sec. 1138(a)(2),
    substituted "and is conclusively" for "and may be" in closing
    provisions.
      Subsec. (c)(2). Pub. L. 104-324, Sec. 1138(a)(3), (b), in closing
    provisions, inserted "or (C)" after "under subparagraph (A)" and
    substituted "nation is conclusively" for "nation may be".
      Subsec. (c)(2)(C). Pub. L. 104-324, Sec. 1138(a)(1), added
    subpar. (C).
      Subsec. (d). Pub. L. 104-324, Sec. 1138(a)(4), inserted "Any
    person charged with a violation of this section shall not have
    standing to raise the claim of failure to comply with international
    law as a basis for a defense." before "A claim of failure".
      Subsec. (f). Pub. L. 104-324, Sec. 1138(a)(5), inserted at end
    "Jurisdiction of the United States with respect to vessels subject
    to this chapter is not an element of any offense. All
    jurisdictional issues arising under this chapter are preliminary
    questions of law to be determined solely by the trial judge."
      1990 - Subsec. (j). Pub. L. 101-647 substituted "shall be subject
    to the same penalties as those" for "is punishable by imprisonment
    or fine, or both, which may not exceed the maximum punishment".
      1988 - Subsec. (a). Pub. L. 100-690, Sec. 7402(a), inserted "or
    who is a citizen of the United States or a resident alien of the
    United States on board any vessel," after "jurisdiction of the
    United States,".
      Subsec. (b)(2). Pub. L. 100-690, Sec. 7402(b), inserted "and a
    claim of nationality or registry for the vessel is made by the
    master or individual in charge at the time of the enforcement
    action by an officer or employee of the United States authorized to
    enforce applicable provisions of United States law" after "High
    Seas".
      1986 - Pub. L. 99-570 and Pub. L. 99-640 generally amended
    section in substantially identical manner, substituting provisions
    relating to manufacture, distribution, or possession with intent to
    manufacture or distribute controlled substances on board vessels
    for provisions relating to attempt or conspiracy.

-End-

-CITE-
    46 USC APPENDIX Sec. 1904                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 38 - MARITIME DRUG LAW ENFORCEMENT

-HEAD-
    Sec. 1904. Seizure or forfeiture of property

-STATUTE-
      (a) Any property described in section 881(a) of title 21 that is
    used or intended for use to commit, or to facilitate the commission
    of, an offense under this chapter shall be subject to seizure and
    forfeiture in the same manner as similar property seized or
    forfeited under section 881 of title 21.
      (b) Practices commonly recognized as smuggling tactics may
    provide prima facie evidence of intent to use a vessel to commit,
    or to facilitate the commission of, an offense under this chapter,
    and may support seizure and forfeiture of the vessel, even in the
    absence of controlled substances aboard the vessel. The following
    indicia, among others, may be considered, in the totality of the
    circumstances, to be prima facie evidence that a vessel is intended
    to be used to commit, or to facilitate the commission of an offense
    under this chapter:
        (1) The construction or adaptation of the vessel in a manner
      that facilitates smuggling, including - 
          (A) the configuration of the vessel to ride low in the water
        or present a low hull profile to avoid being detected visually
        or by radar;
          (B) the presence of any compartment or equipment which is
        built or fitted out for smuggling, not including items such as
        a safe or lock-box reasonably used for the storage of personal
        valuables;
          (C) the presence of an auxiliary tank not installed in
        accordance with applicable law or installed in such a manner as
        to enhance the vessel's smuggling capability;
          (D) the presence of engines that are excessively over-powered
        in relation to the design and size of the vessel;
          (E) the presence of materials used to reduce or alter the
        heat or radar signature of the vessel and avoid detection;
          (F) the presence of a camouflaging paint scheme, or of
        materials used to camouflage the vessel, to avoid detection; or
          (G) the display of false vessel registration numbers, false
        indicia of vessel nationality, false vessel name, or false
        vessel homeport.

        (2) The presence or absence of equipment, personnel, or cargo
      inconsistent with the type or declared purpose of the vessel.
        (3) The presence of excessive fuel, lube oil, food, water, or
      spare parts, inconsistent with legitimate vessel operation,
      inconsistent with the construction or equipment of the vessel, or
      inconsistent with the character of the vessel's stated purpose.
        (4) The operation of the vessel without lights during times
      lights are required to be displayed under applicable law or
      regulation and in a manner of navigation consistent with
      smuggling tactics used to avoid detection by law enforcement
      authorities.
        (5) The failure of the vessel to stop or respond or heave to
      when hailed by government authority, especially where the vessel
      conducts evasive maneuvering when hailed.
        (6) The declaration to government authority of apparently false
      information about the vessel, crew, or voyage or the failure to
      identify the vessel by name or country of registration when
      requested to do so by government authority.
        (7) The presence of controlled substance residue on the vessel,
      on an item aboard the vessel, or on a person aboard the vessel,
      of a quantity or other nature which reasonably indicates
      manufacturing or distribution activity.
        (8) The use of petroleum products or other substances on the
      vessel to foil the detection of controlled substance residue.
        (9) The presence of a controlled substance in the water in the
      vicinity of the vessel, where given the currents, weather
      conditions, and course and speed of the vessel, the quantity or
      other nature is such that it reasonably indicates manufacturing
      or distribution activity.

-SOURCE-
    (Pub. L. 96-350, Sec. 4, Sept. 15, 1980, 94 Stat. 1160; Pub. L. 99-
    570, title III, Sec. 3202, Oct. 27, 1986, 100 Stat. 3207-97; Pub.
    L. 99-640, Sec. 17, Nov. 10, 1986, 100 Stat. 3554; Pub. L. 107-295,
    title IV, Sec. 418(b), Nov. 25, 2002, 116 Stat. 2123.)

-COD-
                               CODIFICATION                           
      Section was formerly classified to section 955d of Title 21, Food
    and Drugs.
      Pub. L. 96-350, as amended generally by Pub. L. 99-570, contained
    two sections designated 3, the first of which is classified to
    section 1903 of this Appendix, and the second of which was
    classified to this section. Subsequently, Pub. L. 99-640 amended
    Pub. L. 96-350 generally designating this section as section 4.

-MISC1-
                                AMENDMENTS                            
      2002 - Pub. L. 107-295 designated existing provisions as subsec.
    (a) and added subsec. (b).
      1986 - Pub. L. 99-570 and Pub. L. 99-640 generally amended
    section identically, substituting provisions relating to seizure or
    forfeiture of property for provisions of the same general subject
    matter.

-End-

-CITE-
    46 USC APPENDIX CHAPTER 39 - MERCHANT MARINE
           DECORATIONS AND MEDALS                          01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 39 - MERCHANT MARINE DECORATIONS AND MEDALS

-HEAD-
            CHAPTER 39 - MERCHANT MARINE DECORATIONS AND MEDALS        

-MISC1-
    Sec.                                                     
    2001.       Award of decorations and medals by Secretary of
                 Transportation.                                      
    2002.       Merchant Marine Distinguished Service Medal and
                 Meritorious Service Medal; other decorations or
                 medals.                                              
    2003.       Gallant Ship Award; citation; plaque; citation ribbon
                 bar; consultation with Secretary of State.           
    2004.       Administrative provisions.                            
                  (a)  Restriction on award of more than one of any
                        type.                                         
                  (b)  Receipt by personal representative.            
                  (c)  Manufacture and sale; replacements.            
                  (d)  Design.                                        
    2005.       Flag and grave marker for deceased individual who
                 served in periods of war or national emergency.      
    2006.       Issuance of special certificate in recognition of
                 service; effect.                                     
    2007.       Unauthorized manufacture, sale, possession, or display
                 of decoration or medal; penalty.                     

-End-

-CITE-
    46 USC APPENDIX Sec. 2001                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 39 - MERCHANT MARINE DECORATIONS AND MEDALS

-HEAD-
    Sec. 2001. Award of decorations and medals by Secretary of
      Transportation

-STATUTE-
      The Secretary of Transportation may award decorations and medals
    of appropriate design (including ribbons, ribbon bars, emblems,
    rosettes, miniature facsimiles, plaques, citations, or other
    suitable devices or insignia) for individual acts or service in the
    United States merchant marine.

-SOURCE-
    (Pub. L. 100-324, Sec. 2, May 30, 1988, 102 Stat. 576.)

-MISC1-
                                SHORT TITLE                            
      Section 1 of Pub. L. 100-324 provided that: "This Act [enacting
    this chapter and repealing sections 249 to 249c of this Appendix
    and provisions set out as a note under section 753 of Title 50,
    Appendix, War and National Defense] may be cited as the 'Merchant
    Marine Decorations and Medals Act'."

-End-

-CITE-
    46 USC APPENDIX Sec. 2002                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 39 - MERCHANT MARINE DECORATIONS AND MEDALS

-HEAD-
    Sec. 2002. Merchant Marine Distinguished Service Medal and
      Meritorious Service Medal; other decorations or medals

-STATUTE-
      The Secretary of Transportation may award - 
        (1) a Merchant Marine Distinguished Service Medal to an
      individual for outstanding acts, conduct, or valor beyond the
      line of duty;
        (2) a Merchant Marine Meritorious Service Medal to an
      individual for meritorious acts, conduct, or valor in the line of
      duty, but not of the outstanding character as would warrant the
      award of the Merchant Marine Distinguished Service Medal;
        (3) a decoration or medal to an individual for service in time
      of war or national emergency proclaimed by the President or
      Congress, or during operations by the Armed Forces of the United
      States outside the continental United States under conditions of
      danger to life and property; and
        (4) a decoration or medal to an individual for other acts or
      service of conspicuous gallantry, intrepidity, and extraordinary
      heroism under conditions of danger to life and property that
      would warrant a similar decoration or medal for a member of the
      Armed Forces of the United States.

-SOURCE-
    (Pub. L. 100-324, Sec. 3, May 30, 1988, 102 Stat. 576.)

-End-

-CITE-
    46 USC APPENDIX Sec. 2003                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 39 - MERCHANT MARINE DECORATIONS AND MEDALS

-HEAD-
    Sec. 2003. Gallant Ship Award; citation; plaque; citation ribbon
      bar; consultation with Secretary of State

-STATUTE-
      The Secretary of Transportation may issue a Gallant Ship Award
    and a citation to a United States vessel or to a foreign-flag
    vessel participating in outstanding or gallant action in marine
    disasters or other emergencies for the purpose of saving life or
    property at sea. The Secretary may award a plaque to a vessel so
    cited, and a replica of the plaque may be preserved as a permanent
    historical record. The Secretary may also award an appropriate
    citation ribbon bar to the master and each individual serving on
    board the vessel at the time of the action for which the citation
    is made. The Secretary shall consult with the Secretary of State
    before giving an award or citation to a foreign-flag vessel or its
    crew under this section.

-SOURCE-
    (Pub. L. 100-324, Sec. 4, May 30, 1988, 102 Stat. 576.)

-End-

-CITE-
    46 USC APPENDIX Sec. 2004                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 39 - MERCHANT MARINE DECORATIONS AND MEDALS

-HEAD-
    Sec. 2004. Administrative provisions

-STATUTE-
    (a) Restriction on award of more than one of any type
      The Secretary of Transportation may not award more than one of
    any type of decoration or medal to an individual. For each
    succeeding act or service justifying the same decoration or medal,
    a suitable device may be awarded to be worn with the decoration or
    medal.
    (b) Receipt by personal representative
      When an individual scheduled to receive a decoration or medal
    under this chapter is unable to accept it, the Secretary may make
    the award to an appropriate personal representative.
    (c) Manufacture and sale; replacements
      The Secretary may provide - 
        (1) the decorations and medals authorized under section 2001 of
      this Appendix and replacements for those decorations and medals;
      and
        (2) replacements for decorations and medals issued under a
      prior law.
    (d) Design
      Decorations and medals authorized under section 2001 of this
    Appendix may be of similar design as are authorized for members of
    the Armed Forces of the United States for similar acts or service.

-SOURCE-
    (Pub. L. 100-324, Sec. 5, May 30, 1988, 102 Stat. 576; Pub. L. 109-
    163, div. C, title XXXV, Sec. 3510, Jan. 6, 2006, 119 Stat. 3557.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This chapter, referred to in subsec. (b), was in the original
    "this Act", meaning Pub. L. 100-324, May 30, 1988, 102 Stat. 576,
    known as the Merchant Marine Decorations and Medals Act, which
    enacted this chapter and repealed sections 249 to 249c of this
    Appendix and provisions set out as a note under section 753 of
    Title 50, Appendix, War and National Defense. For complete
    classification of this Act to the Code, see Short Title note set
    out under section 2001 of this Appendix and Tables.

-MISC1-
                                AMENDMENTS                            
      2006 - Subsec. (c). Pub. L. 109-163 substituted "provide - " for
    "provide at cost, or authorize for the manufacture and sale at
    reasonable prices by private persons - " in introductory
    provisions.

-End-

-CITE-
    46 USC APPENDIX Sec. 2005                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 39 - MERCHANT MARINE DECORATIONS AND MEDALS

-HEAD-
    Sec. 2005. Flag and grave marker for deceased individual who served
      in periods of war or national emergency

-STATUTE-
      Except as authorized under another law, the Secretary of
    Transportation may issue at no cost a flag of the United States and
    a grave marker to the family or personal representative of a
    deceased individual, who served in the United States merchant
    marine in support of the Armed Forces of the United States or its
    allies in periods of war or national emergency.

-SOURCE-
    (Pub. L. 100-324, Sec. 6, May 30, 1988, 102 Stat. 577.)

-End-

-CITE-
    46 USC APPENDIX Sec. 2006                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 39 - MERCHANT MARINE DECORATIONS AND MEDALS

-HEAD-
    Sec. 2006. Issuance of special certificate in recognition of
      service; effect

-STATUTE-
      (a) The Maritime Administrator may issue a special certificate in
    recognition of service to an individual, or the personal
    representative of an individual, whose service in the United States
    merchant marine has been determined to be active duty under section
    401 of Public Law 95-202 (38 U.S.C. 106, Note).
      (b) Issuance of a certificate to any individual under subsection
    (a) of this section does not entitle that individual to any rights,
    privileges, or benefits under any law of the United States.

-SOURCE-
    (Pub. L. 100-324, Sec. 7, May 30, 1988, 102 Stat. 577.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 401 of Public Law 95-202, referred to in subsec. (a), is
    section 401 of Pub. L. 95-202, title IV, Nov. 23, 1977, 91 Stat.
    1449, as amended, which is set out as a note under section 106 of
    Title 38, Veterans' Benefits.

-End-

-CITE-
    46 USC APPENDIX Sec. 2007                                   01/02/2006

-EXPCITE-
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 39 - MERCHANT MARINE DECORATIONS AND MEDALS

-HEAD-
    Sec. 2007. Unauthorized manufacture, sale, possession, or display
      of decoration or medal; penalty

-STATUTE-
      Except as authorized by this chapter, a person may not
    manufacture, sell, possess, or display a decoration or medal
    provided for in this chapter. A person violating this section is
    liable to the United States Government for a civil penalty of
    $2,000.

-SOURCE-
    (Pub. L. 100-324, Sec. 8, May 30, 1988, 102 Stat. 577.)

-End-