I 

118TH CONGRESS 

1ST SESSION H. R. 2588 

To amend title 46, United States Code, to allow transportation of merchandise 

in noncontiguous trade on foreign-flag vessels, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 13, 2023 

Mr. CASE (for himself and Mr. MOYLAN) introduced the following bill; which 

was referred to the Committee on Transportation and Infrastructure, and 

in addition to the Committee on Education and the Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To amend title 46, United States Code, to allow transportation of merchandise in noncontiguous trade on foreignflag vessels, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Noncontiguous Ship5 ping Relief Act of 2023’’. 

6 SEC. 2. TRANSPORTATION OF CERTAIN MERCHANDISE. 

7 (a) IN GENERAL.—Section 55102 of title 46, United 

8 States Code, is amended by redesignating subsection (c) 


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1 as subsection (d) and by inserting after subsection (b) the 

2 following: 

3 ‘‘(c) NONCONTIGUOUS TRADE EXEMPTION.— 

4 ‘‘(1) IN GENERAL.—Subsection (b) shall not 

5 apply with respect to transportation in noncontig6 uous trade of merchandise on a foreign qualified 

7 freight vessel for which the Secretary of Transpor8 tation has issued a certificate of documentation 

9 under chapter 121. 

10 ‘‘(2) DEFINITIONS.—In this subsection: 

11 ‘‘(A) FOREIGN QUALIFIED FREIGHT VES12 SEL.—The term ‘foreign qualified freight vessel’ 

13 means a freight vessel (as that term is defined 

14 in section 2101) of not less than 1,000 gross 

15 tons that— 

16 ‘‘(i) was not built in the United States 

17 (or if rebuilt, not rebuilt in the United 

18 States); 

19 ‘‘(ii) is registered in a foreign country; 

20 and 

21 ‘‘(iii) employs United States citizens 

22 to the extent required of vessels registered 

23 under section 12102. 


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1 ‘‘(B) NONCONTIGUOUS TRADE.—The term 

2 ‘noncontiguous trade’ has the meaning given 

3 such term in section 53501.’’. 

4 (b) COASTWISE ENDORSEMENTS.—Section 

5 12112(a)(2)(B) of title 46, United States Code, is amend6 ed— 

7 (1) in clause (ii), by striking ‘‘or’’; 

8 (2) in clause (iii), by striking ‘‘and’’ and insert9 ing ‘‘or’’; and 

10 (3) by adding at the end the following: 

11 ‘‘(iv) is a foreign qualified freight vessel 

12 (as defined in section 55102(c)) used for trans13 portation referred to in section 55102(c) for 

14 which the Secretary of Transportation has 

15 issued a certificate of documentation; and’’. 

16 (c) FOREIGN TRANSFER.—Section 56101(a)(2) of 

17 title 46, United States Code, is amended— 

18 (1) by striking ‘‘Paragraph (1)(A)’’ and insert19 ing: 

20 ‘‘(A) FISHING VESSEL.—Paragraph 

21 (1)(A)’’; and 

22 (2) by adding at the end the following: 

23 ‘‘(B) FOREIGN QUALIFIED FREIGHT VES24 SEL.—Paragraph (1) does not apply with re25 spect to a foreign qualified freight vessel for 


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1 which the Secretary has issued a certificate of 

2 documentation after the date of enactment of 

3 the Noncontiguous Shipping Relief Act of 2023 

4 and that is used solely for transportation re5 ferred to in section 55102(c). 

6 ‘‘(C) FOREIGN REGISTRY.—A foreign 

7 qualified freight vessel may be placed under for8 eign registry without the approval of the Sec9 retary at any time after such vessel is issued a 

10 certificate of documentation. At such time as 

11 such vessel is placed under foreign registry, the 

12 Secretary shall revoke the certificate of docu13 mentation issued by the Secretary.’’. 

14 SEC. 3. CITIZENSHIP AND TRANSFER PROVISIONS. 

15 (a) CITIZENSHIP OF CORPORATIONS, PARTNERSHIPS, 

16 AND ASSOCIATIONS.—Section 50501 of title 46, United 

17 States Code, is amended by adding at the end the fol18 lowing: 

19 ‘‘(e) EXCEPTIONS.—Subsection (c) and paragraphs 

20 (2) and (3) of subsection (b) shall not apply to a foreign 

21 qualified freight vessel (as such term is defined in section 

22 55102(c)) used for transportation referred to in section 

23 55102(c)(2)(B).’’. 

24 (b) APPROVAL OF TRANSFER OF REGISTRY OR OP25 ERATION UNDER AUTHORITY OF A FOREIGN COUNTRY OR


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1 FOR SCRAPPING IN A FOREIGN COUNTRY; PENALTIES.— 

2 Section 56101 of title 46, United States Code, is amended 

3 by adding at the end the following: 

4 ‘‘(f) TRANSFER OF FOREIGN QUALIFIED FREIGHT

5 VESSELS.—To promote the transfer of foreign qualified 

6 freight vessels to be documented under chapter 121 of this 

7 title for use for transportation referred to in section 

8 55102(c)(2)(B) of this title, the Secretary may grant ap9 proval under subsection (a) with respect to such a vessel 

10 before the date the vessel is documented. 

11 ‘‘(g) FOREIGN QUALIFIED FREIGHT VESSEL DE12 FINED.—In this section, the term ‘foreign qualified freight 

13 vessel’ has the meaning given such term in section 

14 55102(c) of this title.’’. 

15 SEC. 4. LABOR PROVISIONS. 

16 (a) LIABILITY FOR INJURY OR DEATH OF MASTER

17 OR CREW MEMBER.—Section 30104(a) of title 46, United 

18 States Code, is amended by adding at the end the fol19 lowing: ‘‘In an action brought under this section against 

20 a defendant employer that does not reside or maintain an 

21 office in the United States (including any territory or pos22 session of the United States) and that engages in any en23 terprise that makes use of one or more ports in the United 

24 States (as defined in section 2101 of this title) jurisdiction 

25 shall be under the district court most proximate to the 


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1 place of the occurrence of the personal injury or death that 

2 is the subject of the action.’’. 

3 (b) ELECTION TO UNDER PARTICIPATE LONGSHORE

4 AND HARBOR WORKERS’ COMPENSATION ACT.—Section 

5 30104 of title 46, United States Code, is amended by add6 ing at the end the following: 

7 ‘‘(c) PARTICIPATION IN AN AUTHORIZED COMPENSA8 TION PLAN.—The employer of a master or member of the 

9 crew of a vessel may participate in an authorized com10 pensation plan under the Longshore and Harbor Workers’ 

11 Compensation Act (33 U.S.C. 901 et seq.). An employer 

12 that participates in such a plan is subject to such Act. 

13 If an employer participates in an authorized compensation 

14 plan under such Act— 

15 ‘‘(1) a master or crew member employed by 

16 such employer shall be considered to be an employee 

17 for the purposes of such Act; and 

18 ‘‘(2) the liability of that employer under such 

19 Act to the master or crew member, or to any person 

20 otherwise entitled to recover damages from the em21 ployer based on the injury, disability, or death of the 

22 master or crew member, shall be exclusive and in 

23 lieu of all other liability.’’. 

24 (c) MINIMUM REQUIREMENTS.—All vessels, whether 

25 documented in the United States or not, operating in the 


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1 coastwise trade of the United States shall be subject to 

2 minimum international labor standards for seafarers 

3 under international agreements in force for the United 

4 States, as determined by the Secretary of Transportation 

5 on the advice of the Secretaries of Labor and Defense. 

6 SEC. 5. REGULATIONS REGARDING VESSELS. 

7 (a) APPLICABLE MINIMUM REQUIREMENTS.—Except 

8 as provided in subsection (b), the minimum requirements 

9 for vessels engaging in the transportation of cargo or mer10 chandise in the United States coastwise trade shall be the 

11 recognized international standards in force for the United 

12 States (as determined by the Secretary of the department 

13 in which the Coast Guard is operating, in consultation 

14 with any other official of the Federal Government that the 

15 Secretary determines to be appropriate). 

16 (b) CONSISTENCY IN APPLICATION OF STAND17 ARDS.—In any case in which any minimum requirement 

18 for vessels referred to in subsection (a) establishes a lower 

19 standard than a minimum that is applicable to vessels that 

20 are documented in a foreign country and that are admit21 ted to engage in the transportation of cargo and merchan22 dise in the United States coastwise trade, the standard 

23 applicable to such vessels that are documented in a foreign 

24 country shall be the standard to be applied to United 

25 States documented vessels. 


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1 SEC. 6. ENVIRONMENTAL STANDARDS. 

2 All vessels, whether documented under the laws of the 

3 United States or not, engaging in the United States coast4 wise trade shall comply with all applicable United States 

5 and international environmental standards in force for the 

6 United States. 

7 SEC. 7. REQUIREMENTS FOR CERTAIN NONCITIZENS IR8 REGULARLY ENGAGING IN DOMESTIC COAST9 WISE TRADE. 

10 (a) IN GENERAL.—Each person or entity that is not 

11 a citizen of the United States, as defined in section 104 

12 of title 46, United States Code, that owns or operates ves13 sels that irregularly engage in the United States domestic 

14 coastwise trade shall— 

15 (1) name an agent upon whom process may be 

16 served; 

17 (2) abide by all applicable laws of the United 

18 States, including applicable environmental and tax 

19 laws; and 

20 (3) post evidence of documentation and en21 dorsements aboard such vessel indicating the owner 

22 or owners of such vessel, including any person con23 trolling vessels and the number of port calls and 

24 coastwise trips made during that calendar year. 

25 (b) PERSONS TREATED AS SINGLE EMPLOYER.—For 

26 purposes of paragraph (3) of subsection (a), all persons 


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1 treated as a single employer under subsection (a) or (b) 

2 of section 52 of the Internal Revenue Code of 1986 shall 

3 be treated as 1 person. 

Æ 


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